Time Warner Cable 2008 Annual Report Download - page 21

Advanced Advertising
TWC is exploring various means by which it could utilize its VOD and other advanced capabilities to deliver to
television advertisers the same kind of advanced advertising offerings and measurement data currently available to
Internet advertisers. For example, in several divisions, TWC provides overlays that enable digital video subscribers
with a TWC-provided set-top box to request additional information regarding certain advertised products, using the
remote control, to “telescope” from a traditional advertisement to a long-form VOD segment regarding the
advertised product, to vote on a relevant topic or to receive more specific additional information. These tools can be
used to provide advertisers with important feedback about the impact of their advertising efforts. TWC also
currently provides anonymized VOD and enhanced TV viewing data to its programming partners. In addition, in
2008, TWC and certain other cable operators formed a joint venture, Canoe Ventures LLC (“Canoe”), focused on
developing a common technology platform among cable operators for the delivery of advanced advertising products
and services to be offered to programmers and advertisers. TWC plans, through Canoe, to expand its measurement
capabilities in order to provide anonymized viewing data to marketers and strategic partners to serve as the
foundation of its advanced advertising platform.
Wireless Ventures
TWC is investing in technology to provide subscribers with the ability to access its video, high-speed data and
voice services outside the home. In November 2008, TWC and several other companies collectively invested
$3.2 billion in Clearwire Corporation, a wireless broadband communications company (“Clearwire Corp”), and one
of its operating subsidiaries, Clearwire Communications LLC (“Clearwire LLC,” and, collectively with Clearwire
Corp, “Clearwire”). TWC invested $550 million for membership interests in Clearwire LLC and received voting
and board of director nomination rights in Clearwire Corp. Clearwire LLC was formed by the combination of Sprint
Nextel Corporation’s (“Sprint”) and Clearwire Corp’s respective wireless broadband businesses and is focused on
deploying the first nationwide fourth-generation wireless network to provide mobile broadband services to
wholesale and retail customers. In connection with the transaction, TWC entered into a wholesale agreement
with Sprint that allows TWC to offer wireless services utilizing Sprint’s second-generation and third-generation
network and a wholesale agreement with Clearwire that will allow TWC to offer wireless services utilizing
Clearwire’s mobile broadband wireless network. TWC is also a participant in a joint venture with several other
cable companies that holds advanced wireless spectrum licenses. For more information about these wireless
investments, see “—Operating Partnerships and Joint Ventures” below.
Marketing and Sales
TWC’s marketing strategy primarily focuses on bundles of video, high-speed data and voice services,
including premium services, offered in differentiated, but easy to understand packages that also provide a discount
from the price of buying the services separately and the convenience of a single bill. Bundles are generally marketed
with entry level pricing, which provides TWC’s customer care representatives the opportunity to offer additional
services or upgraded levels of existing services that may be appealing to targeted customer groups. In addition,
TWC offers its customers a price lock guarantee, which allows customers to enter into a longer-term contract with
TWC at a set rate. As of December 31, 2008, more than 1.0 million of TWC’s customers had a price lock guarantee.
TWC utilizes its brand and the brand statement, The Power of You
TM
, in conjunction with a variety of integrated
marketing, promotional and sales campaigns and techniques generally on a local or regional basis. TWC’s advertising
is intended to let its diverse base of subscribers and potential subscribers know that it is a customer-centric company
committed to exceeding customers’ expectations through innovative service offerings and customer service. This
message is delivered via broadcast, TWC’s website, its cable systems, print, radio and other outlets including outdoor
advertising, direct mail, e-mail, on-line advertising, local grassroots efforts and non-traditional media.
TWC also employs a wide range of direct channels to reach its customers, including outbound telemarketing,
door-to-door sales and marketing in retail stores. In addition, TWC uses customer care channels and inbound call
centers to increase awareness of its service offerings. Promotional offers with third parties are also a key part of its
strategy, and an area in which TWC works with third parties such as consumer electronics manufacturers and cable
programmers.
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