Time Warner Cable 2010 Annual Report Download - page 62

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Total Subscription revenues increased 5.3% as a result of increases in residential and commercial video, high-speed
data and voice revenues. Residential and commercial subscription revenues were as follows (in millions):
2009 2008 % Change 2009 2008 % Change
Year Ended December 31,
Residential
Year Ended December 31,
Commercial
Subscription:
Video ................. $ 10,508 $ 10,285 2.2% $ 252 $ 239 5.4%
High-speed data .......... 3,927 3,633 8.1% 593 526 12.7%
Voice.................. 1,816 1,591 14.1% 70 28 150.0%
Total Subscription .......... $ 16,251 $ 15,509 4.8% $ 915 $ 793 15.4%
The increase in video revenues was primarily due to an increase in revenues from digital video recorder service,
video price increases and the continued growth of video subscribers, which were partially offset by a decrease in video
subscribers (resulting, in part, from the December 2008 sale of certain non-core cable systems serving 78,000 video
subscribers) and a decline in premium channel subscribers and transactional video-on-demand revenues. Additional
information regarding the major components of video revenues was as follows (in millions):
2009 2008 % Change
Year Ended December 31,
Programming tiers
(a)
......................................... $ 7,188 $ 7,095 1.3%
Premium channels .......................................... 875 913 (4.2%)
Transactional video-on-demand ................................ 367 399 (8.0%)
Video equipment rental and installation charges .................... 1,195 1,112 7.5%
DVR service .............................................. 510 403 26.6%
Franchise and other fees
(b)
.................................... 476 459 3.7%
Other .................................................... 149 143 4.2%
Total .................................................... $ 10,760 $ 10,524 2.2%
(a)
Programming tier revenues include subscriber fees for the BST, CPST and DBT video programming tiers, as well as genre-based programming
tiers, such as movie, sports and Spanish-language tiers.
(b)
Franchise and other fees include fees collected on behalf of franchising authorities and the FCC.
High-speed data revenues increased primarily due to growth in high-speed data subscribers and an increase in cell
tower backhaul and Metro Ethernet revenues.
The increase in voice revenues was due to growth in Digital Phone subscribers, partially offset by a decrease in
average revenues per subscriber.
Average monthly subscription revenues (which includes video, high-speed data and voice revenues) per unit were as
follows:
2009 2008 % Change
Year Ended December 31,
Average monthly subscription revenues per:
Customer relationship ...................................... $ 97.83 $ 92.44 5.8%
Primary service unit ....................................... 54.85 54.27 1.1%
Advertising revenues decreased due to a decline in revenues from national, regional and local businesses and
political advertising revenues.
50
TIME WARNER CABLE INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION—(Continued)