Time Warner Cable 2012 Annual Report Download - page 16

TWC also began selling advertising inventory on the Company’s two Los Angeles regional sports networks, Time Warner
Cable SportsNet and Time Warner Cable Deportes, launched on October 1, 2012 that carry the Los Angeles Lakers’
basketball games and other sports programming (the “LA RSNs”). In addition, TWC continues to explore various means to
deliver advanced advertising offerings and measurement data to video and high-speed data advertisers.
In many locations, TWC has formed advertising “interconnects” or entered into representation agreements with
contiguous cable system operators under which TWC sells advertising on behalf of those operators. This enables TWC to
deliver commercials across wider geographic areas, replicating the reach of the local broadcast stations as much as possible.
TWC also sells advertising on behalf of Verizon FiOS and AT&T Inc. (“AT&T”) U-verse in a number of cities and online
display advertising on behalf of several third parties. In addition, TWC, together with Comcast and Cox, owns National
Cable Communications LLC (“National Cable Communications”), which, on behalf of a number of cable operators, sells
advertising time to national and regional advertisers. Through National Cable Communications, TWC is a party to an
agreement to sell certain DIRECTV Group Inc. (“DIRECTV”) advertising inventory.
Regional Sports and News Networks
On October 1, 2012, TWC launched the LA RSNs, one in English and one in Spanish, that carry the Los Angeles
Lakers’ basketball games, the Los Angeles Galaxy Major League Soccer games and the Sparks women’s basketball games as
well as other regional sports programming. TWC has a long-term agreement with the Los Angeles Lakers for rights to
distribute all locally available pre-season, regular season and post-season Los Angeles Lakers’ games. As of December 31,
2012, the LA RSNs are distributed by the majority of major video distributors to approximately 8.6 million subscribers.
TWC also manages 18 local news channels, including NY1 News, 13 local sports channels and seven local lifestyle channels,
and it owns 26.8% of Sterling Entertainment Enterprises, LLC (doing business as SportsNet New York), a New York City-
based regional sports network that carries New York Mets’ baseball games as well as other regional sports programming. In
addition, in January 2013, TWC entered into a long-term affiliation agreement with American Media Productions, LLC
(“American Media Productions”), which owns SportsNet LA, a regional sports network that will carry the Los Angeles
Dodgers’ baseball games and other sports programming beginning with the 2014 baseball season. TWC also will act as the
network’s exclusive advertising and affiliate sales agent and will have certain branding and programming rights with respect
to the network. In addition, TWC will provide certain non-game production and technical services to American Media
Productions. The arrangement with American Media Productions is subject to certain closing conditions.
Marketing and Sales
During 2012, TWC launched the “Enjoy Better” platform to market its services, which aims to remind current and
potential customers that TWC makes enjoying the things they love better. The messaging is delivered via broadcast, TWC’s
website, its cable systems, print, radio and other outlets, including outdoor advertising, direct mail, email, online advertising,
local grassroots efforts and non-traditional media.
TWC also employs a wide range of direct channels to reach its customers, including outbound telemarketing, email
marketing, door-to-door sales, online at www.twc.com and through third-party web partners, and in TWC and third-party
retail stores, including Verizon Wireless retail stores. Beyond these channels, TWC uses social media applications, such as
Facebook, to build awareness of its brand, products and services. In addition, TWC uses customer care channels and inbound
call centers to sell additional services to existing customers, as well as new services to potential customers.
TWC targets products and services to specific groups of existing and potential customers. TWC offers SignatureHome,
a product and service bundle targeting its higher-end demographic with a video, high-speed data and voice bundle that
includes certain enhanced features. TWC also offers Time Warner Cable TV Essentials and Essentials Internet, video and
high-speed data packages that appeal to budget-conscious customers. TWC uses product innovations, like its TWC TV apps,
to differentiate TWC from its competitors and creative marketing campaigns to appeal to groups of customers. TWC plans to
continue to tailor services by customer segment and market these services with a mix of targeted media and direct marketing
efforts.
6