Time Warner Cable 2008 Annual Report Download - page 17

On-Demand services. On-Demand services are available to digital video subscribers using a TWC-provided
set-top box or, when available, a tru2way-enabled television. Available On-Demand services include a wide
selection of featured movies and special events, for which separate per-use fees are generally charged, and free
access to selected movies, programs and program excerpts from broadcast and cable networks, music videos, local
programming and other content. In addition, premium service (e.g., HBO) subscribers receiving services via a
TWC-provided digital set-top box generally have access to the premium service’s On-Demand content without
additional fees.
Enhanced TV services. TWC is expanding the use of VOD technology to introduce additional enhancements
to the video experience. For instance, as of December 31, 2008, Start Over
TM
, which allows digital video subscribers
using a TWC-provided set-top box to restart select “in progress” programs airing on participating cable networks
and broadcast stations directly from the relevant channel, without the ability to fast-forward through commercials,
was available to 47%, or approximately 4.0 million, of TWC’s digital video subscribers. TWC received an Emmy
TM
award in 2007 for its Start Over service. TWC has begun rolling out other Enhanced TV features such as Look
Back
TM
, which utilizes the Start Over technology to allow viewing of recently aired programs, and Quick Clips
TM
,
which allows customers to view short-form content tied to the cable network or broadcast station then being
watched. TWC is also working to make available Catch Up, which will allow customers to view previously aired
programs they have missed.
HD television. In its more advanced divisions, as of December 31, 2008, TWC offered up to 95 channels of
high-definition (“HD”) television, or HDTV, and expects to continue to add additional HD programming during
2009. In most divisions, HD simulcasts (i.e., HD channels that are the same as their standard-definition counterparts
but for picture quality) are provided at no additional charge, and additional charges apply only for HD channels that
do not have standard definition counterparts. In addition to its linear HD channels, TWC also offers VOD
programming in HD and, on select channels, HD programming viewed using Start Over is presented in HD.
DVRs. Set-top boxes equipped with digital video recorders (“DVRs”) enable customers, among other things,
to pause and/or rewind “live” television programs and record programs on the hard drive built into the set-top box.
TWC also offers HD DVRs, which enable customers to record HD programming. Subscribers pay an additional
monthly fee for TWC’s DVR service. As of December 31, 2008, 47%, or approximately 4.0 million, of TWC’s
digital video subscribers also subscribed to its DVR service.
High-speed Data Services
TWC offered residential high-speed data services to nearly all of its homes passed as of December 31, 2008.
TWC’s high-speed data services provide customers with a fast, always-on connection to the Internet. High-speed
data subscribers connect to TWC’s cable systems using a cable modem, which TWC provides at no charge or which
subscribers can purchase on their own. Generally, subscribers pay a flat monthly fee based on the level of service
received.
The following table presents selected statistical data regarding TWC’s residential high-speed data subscribers:
2008 2007 2006
December 31,
(in thousands, except percentages)
Homes passed
(a)
............................................... 26,592 26,248 25,691
Residential high-speed data subscribers
(b)(c)
.......................... 8,444 7,620 6,644
Residential high-speed data penetration
(d)
............................ 31.8% 29.0% 25.9%
(a)
Homes passed represent the estimated number of high-speed data service-ready single residence homes, apartment and condominium units
and commercial establishments passed by TWC’s cable systems without further extending the transmission lines.
(b)
Residential high-speed data subscriber numbers reflect billable subscribers who receive TWC’s Road Runner
TM
high-speed data service or
any other residential high-speed data service offered by TWC.
(c)
The determination of whether a high-speed data subscriber is categorized as commercial or residential is generally based upon the type of
service provided to the subscriber. For example, if the Company provides a commercial service, the subscriber is classified as commercial.
(d)
Residential high-speed data penetration represents residential high-speed data subscribers as a percentage of homes passed.
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