Time Warner Cable 2011 Annual Report Download - page 11

specialty tiers of genre-based programming, such as the Family Choice Tier, Time Warner Cable Movie Pass and Time
Warner Cable Sports Pass, as well as packages such as El Paquetazo®, with English and Spanish-language channels designed
to appeal to Hispanics, and Time Warner Cable TV Essentials, which targets budget-conscious customers. TWC’s residential
video subscribers may also purchase premium channels, such as HBO®, Showtime®, Starz®and Cinemax®.
TWC offers residential video subscribers, on average, approximately 140 high definition (“HD”) channels, including the
major broadcast networks, leading national cable networks, premium channels and regional sports networks, as well as a
large selection of Video On Demand (“VOD”) programming in HD. During 2011, TWC also began to offer select
programming in a three-dimensional or “3D” format.
TWC’s video subscribers pay a monthly fee based on the video programming tier or package they receive. Subscribers
to specialized tiers and premium channels are charged an additional monthly fee, with discounts generally available for the
purchase of packages of more than one such service. HD simulcasts are generally provided at no additional charge, and
additional charges generally apply only for packages of HD channels that do not have standard-definition counterparts. The
rates TWC can charge for its basic service tier and certain video equipment, including set-top boxes, in areas not subject to
“effective competition” are subject to regulation under federal law. As of December 31, 2011, the Federal Communications
Commission (the “FCC”) has determined that approximately 75% of the communities TWC serves are subject to “effective
competition.” See “—Regulatory Matters” below.
Any time. TWC provides a broad range of advanced services, such as VOD, digital video recorder (“DVR”) and Start
Over®and Look Back®services that provide residential video subscribers with the ability to control when they watch their
favorite programming.
TWC’s VOD service provides residential video subscribers with free access to a wide selection of movies, programming
from broadcast and cable networks, music videos, local programming and other content. TWC’s VOD service also offers a
wide selection of featured movies and special events on a pay-per-view basis. In addition, premium channel (e.g., HBO)
subscribers generally have access to the premium channel’s VOD content without additional fees.
TWC offers equipment with DVR functionality that enables residential video subscribers to pause and/or rewind “live”
television programs and record programs for future viewing. Subscribers pay an additional monthly fee for TWC’s DVR
service. As of December 31, 2011, 51.8%, or approximately 4.7 million, of TWC’s residential and business services digital
video subscribers subscribed to its DVR service. TWC also offers Whole House DVR, a multi-room DVR service, which
allows a program recorded on a DVR to be watched on any connected television in a customer’s home. In addition, TWC
offers remote DVR management, which provides customers with the ability to view television listings and program their
DVRs via a computer or alternative device, such as a smartphone or tablet.
TWC also offers Start Over, which enables digital video subscribers using a TWC-provided set-top box to restart select
“in progress” programs directly from the relevant channel and Look Back, which extends the window for viewing a program
to 72 hours after it has aired. Start Over and Look Back are available in nearly all of TWC’s service areas.
Any device. During 2011, TWC launched the TWC TVTM application or “app” for the iPad®and, during the first quarter
of 2012, it launched a similar app for the iPhone®. Both apps enable video subscribers to watch live cable channels on their
iPad or iPhone on their premises and to use their device as a remote control with the ability to search program listings by
title, impose parental controls and change television channels on compatible TWC set-top boxes. These apps also enable
video subscribers to manage their DVR remotely. During 2011, TWC also launched the TWC TV app for AndroidTM
smartphones and tablets, which provides customers with similar remote control and DVR management functions as the iPad
and iPhone apps, and the Company expects to make live programming available for on-premise viewing on its Android app
in 2012. In addition, during 2012, TWC expects to make live programming available on a variety of new devices in the home
via TWC TV apps or web portal, including personal computers, games consoles and certain models of Internet-ready
televisions, and to make VOD content available on all of these devices.
Anywhere. TWC also enables video subscribers to watch certain content wherever they are connected to the Internet.
TWC offers online access to ESPN®, ESPN2®, ESPN3®, ESPNU®and ESPN Buzzer Beater®to customers who subscribe to
a video tier that includes ESPN, and it offers TWC Sports Pass video subscribers authenticated online access to the Big Ten
Network®and Speed2®. During the first quarter of 2012, TWC also began offering access to HBO GO®and Max GO®to
customers who subscribe to those video services, without any additional fees. During 2012, TWC expects to make additional
programming available to its video subscribers wherever they are connected to the Internet.
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