Time Warner Cable 2010 Annual Report Download - page 14

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Market. The transaction, which is subject to NaviSite stockholder approval, certain regulatory approvals and customary
closing conditions, is expected to close in the second quarter of 2011. On February 8, 2011, a lawsuit was filed on behalf of
a purported class of NaviSite stockholders against NaviSite, certain of its officers and directors and TWC alleging
breaches of fiduciary duty and that the consideration to be paid in connection with the transaction is inadequate. The
lawsuit seeks to enjoin the transaction and monetary damages. The Company intends to defend against this lawsuit
vigorously.
Caution Concerning Forward-Looking Statements and Risk Factors
This Annual Report on Form 10-K includes certain “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs
and are inherently susceptible to uncertainty and changes in circumstances. Actual results may vary materially from the
expectations contained herein due to changes in economic, business, competitive, technological, strategic and/or
regulatory factors and other factors affecting the operation of TWC’s business. For more detailed information about
these factors, and risk factors with respect to the Company’s operations, see Item 1A, “Risk Factors,” below and “Caution
Concerning Forward-Looking Statements” in “Management’s Discussion and Analysis of Results of Operations and
Financial Condition” in the financial section of this report. TWC is under no obligation to, and expressly disclaims any
obligation to, update or alter its forward-looking statements, whether as a result of such changes, new information,
subsequent events or otherwise.
Available Information and Website
Although TWC and its predecessors have been in the cable business for over 40 years in various legal forms, Time
Warner Cable Inc. was incorporated as a Delaware corporation on March 21, 2003. TWC’s annual report on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to such reports filed with or furnished
to the Securities and Exchange Commission (“SEC”) pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), are available free of charge on the Company’s website at
www.timewarnercable.com as soon as reasonably practicable after such reports are electronically filed with the SEC
(www.sec.gov).
Services
TWC offers video, high-speed data and voice services over its broadband cable systems to residential and
commercial customers.
Residential Services
Video Services
TWC offers a broad range of residential video services, including advanced services such as On-Demand, high-
definition (“HD”) and digital video recorder (“DVR”) services. As of December 31, 2010, TWC had approximately
12.3 million residential video subscribers.
Programming tiers. TWC generally offers three main levels or “tiers” of video programming and music
services–Basic Service Tier (“BST”), Expanded Basic Service Tier (or Cable Programming Service Tier) (“CPST”)
and Digital Basic Service Tier (“DBT”). BST includes broadcast television signals, satellite-delivered broadcast networks
and superstations, local origination channels, a few other networks and public access, educational and government
channels. CPST enables BST subscribers to add to their service national, regional and local cable entertainment, news and
other networks, such as CNN, USA and ESPN. In certain areas, BST and CPST also include proprietary local
programming devoted to the communities TWC serves, including 24-hour local news channels and sports channels
in a number of cities. DBT enables subscribers who receive digital video signals (“digital video subscribers”) to receive
additional cable networks. Generally, CPST and DBT subscribers can purchase genre-based programming tiers, such as
Time Warner Cable Movie Pass and Time Warner Cable Sports Pass, and subscribers to any tier of video service can
purchase premium services, such as HBO and Showtime.
TWC’s video subscribers pay a fixed monthly fee based on the video programming tier they receive. Subscribers to
specialized tiers and premium services are charged an additional monthly fee, with discounts generally available for the
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