Time Warner Cable 2012 Annual Report Download - page 13

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, 2012, the Federal
Communications Commission (the “FCC”) has determined that approximately 70% of the communities TWC serves are
subject to “effective competition.” See “—Regulatory Matters” below.
Time-shifting. TWC provides a broad range of advanced services, such as VOD, DVRs 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 network (e.g., HBO)
subscribers generally have access to the premium network’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, 2012, 53.9%, or approximately 5.1 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,
customers may program their DVRs remotely via a smartphone, tablet or computer.
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.
New ways to watch. TWC, through its TWC TV apps, enables in-home viewing of up to 300 channels of live
programming on iPad, iPhone and Android devices and over 4,000 VOD programs and movies on iPad, iPhone and iPod
Touch devices. Subscribers also may watch the same TWC TV programming on their home computer via twctv.com.In
addition, subscribers are able to use their smartphone, tablet or computer as a remote control with the ability to access the
interactive program guide and parental controls and change television channels on compatible TWC set-top boxes. During
the first quarter of 2013, TWC expects to make TWC TV live programming available to residential video subscribers on
certain Roku Inc. streaming devices in the U.S, without the need for a leased TWC set-top box.
TWC also enables video subscribers to watch certain content wherever they are connected to the Internet, whether in or
outside their home. TWC offers customers online access to a growing number of prominent networks, such as ESPN, HBO,
Comedy Central, MTV, Spike, Nickelodeon, NBA League Pass, Big Ten Network, PAC-12 Networks and Time Warner
Cable SportsNet and Time Warner Cable Deportes, without any additional fees. During 2013, TWC expects to make
additional programming available to its residential video subscribers wherever they are connected to the Internet.
As of December 31, 2012, TWC served approximately 12.0 million residential video subscribers.
High-speed Data Services
TWC’s high-speed data services provide residential services customers with a fast, always-on connection to the Internet.
As of December 31, 2012, TWC served approximately 10.9 million residential high-speed data subscribers.
TWC offers multiple tiers of high-speed data service providing various service speeds, data usage levels and other
attributes tailored to meet the different needs of its subscribers. TWC’s Standard tier provides downstream speeds up to
15 megabits per second (“Mbps”). For subscribers who want faster speeds, TWC offers Turbo, Extreme and Ultimate 50
tiers, with downstream speeds ranging from up to 20 Mbps to 50 Mbps. In a few cities, TWC is offering Ultimate 75 and
Ultimate 100 tiers, with downstream speeds up to 75 Mbps and 100 Mbps, respectively. In addition, TWC offers Essentials
Internet, which gives customers the option to select a high-speed data plan with a lower data allotment and price, based on
their needs and budget. The Essentials option is available with TWC’s Lite, Basic and Standard high-speed data tiers.
TWC’s high-speed data service provides communication tools and personalized services, including email, personal
computer (“PC”) security, parental controls and online radio, without any additional charge. The RR.com portal provides
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