Time Warner Cable 2006 Annual Report Download - page 11

Digital services. Subscribers to TWC’s digital video services receive up to 250 digital video and audio
services (in digital format in most of the Legacy Systems) and services that may include:
• Additional Cable Networks — up to 60 digitally delivered cable networks, including spin-off and successor
networks to successful national cable services, new networks and niche programming services, such as
Discovery Home and MTV2;
• Interactive Program Guide — an on-screen interactive program guide that contains descriptions of available
viewing options, enables navigation among these options and provides convenient parental controls and
access to TWC’s On-Demand services, which are described below;
• Premium and Multiplex Premium Channels — multi-channel versions of premium services, such as the
suite of HBO networks, which includes HBO, HBO 2, HBO Signature, HBO Family, HBO Comedy, HBO
Zone and HBO Latino;
• Music Channels — up to 45 CD-quality genre-themed audio music stations;
• Seasonal Sports Packages — packages of sports programming, such as “NBA League Pass” and “NHL
Center Ice,” which provide multiple channels displaying games from outside the subscriber’s local area;
• Digital Tiers — specialized tiers comprising thematically linked programming services, including sports
and Spanish language tiers; and
• Family Choice Tier — a specialized tier comprising about 15 standard and digital channels selected to be
appropriate for family viewing based on ratings information provided by the programmers and based on
TWC’s best judgment.
TWC’s analog and digital video subscribers pay a fixed monthly fee for the level of service they receive.
Subscribers to premium channels are charged an additional monthly fee, with discounts generally available for the
purchase of packages of more than one such service.
As of December 31, 2006, 54.2%, or approximately 7.3 million, of TWC’s basic video subscribers subscribed
to its digital video services and, in the Legacy Systems, approximately 55.6%, or approximately 5.3 million, of its
basic video subscribers subscribed to its digital video services. Although digital video penetration levels have been
lower in the Acquired Systems, TWC believes it has an opportunity to increase the number of digital subscribers in
the Acquired Systems.
On-Demand services. TWC offers a number of On-Demand services that enable users to view what they
want, when they want it. These services — which are provided only to TWC’s digital video customers — feature
advanced functionality, such as the ability to pause, rewind and fast-forward the programming using TWC’s VOD
system. TWC believes that access to On-Demand programming gives its existing analog subscribers and potential
new subscribers a compelling reason to subscribe to its digital video service. TWC’s On-Demand products and
services include:
• Movies-on-Demand — offers a wide selection of movies and occasional special events to TWC’s digital
video subscribers. In December 2006, TWC offered on average approximately 720 hours of this
programming.
• Subscription-Video-on-Demand — provides digital subscribers with On-Demand access to packages of
programming that are either associated with a particular premium content provider, to which they already
subscribe, such as HBO On-Demand, or are otherwise made available on a subscription basis. In December
2006, TWC offered on average approximately 460 hours of this programming. Certain selected packages of
programming are available for an additional fee.
• Free Video-on-Demand — provides digital subscribers with free On-Demand access to selected movies,
programs and program excerpts from cable television networks such as A&E, PBS Sprout, Oxygen and
CNN, as well as music videos, local programming and other content, and introduces subscribers to the
convenience of TWC’s On-Demand services. In December 2006, TWC offered on average approximately
460 hours of this programming.
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