Time Warner Cable 2014 Annual Report Download - page 45

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TIME WARNER CABLE INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION—(Continued)
the network. In addition, TWC provides certain production and technical services to American Media Productions. As a
result of the launch of SportsNet LA, related revenue, including intersegment revenue, and expenses are included in the
Company’s Other Operations segment. The Company continues to seek distribution agreements for the carriage of
SportsNet LA by major distributors.
Competition
The operations of each of TWC’s reportable segments face intense competition, both from existing competitors and,
as a result of the rapid development of new technologies, services and products, from new entrants.
Residential Services Segment
TWC faces intense competition for residential customers from a variety of alternative communications, information
and entertainment delivery sources. TWC competes with incumbent local telephone companies and overbuilders across
each of its residential services. Some of these competitors offer a broad range of services with features and functions
comparable to those provided by TWC and in bundles similar to those offered by TWC, sometimes including wireless
service. Each of TWC’s residential services also faces competition from other companies that provide services on a stand-
alone basis. TWC’s residential video service faces competition from direct broadcast satellite services, and increasingly
from companies that deliver content to consumers over the Internet. TWC’s residential high-speed data service faces
competition from wireless Internet providers and direct broadcast satellite services. TWC’s residential voice service faces
competition from wireless voice providers, “over-the-top” phone services and other alternatives.
Business Services Segment
TWC faces significant competition as to each of its business services offerings. Its business high-speed data,
networking and voice services face competition from a variety of telecommunications carriers, including incumbent local
telephone companies. TWC’s cell tower backhaul service also faces competition from traditional telephone companies as
well as other telecommunications carriers, such as metro and regional fiber-based carriers. TWC’s business video service
faces competition from direct broadcast satellite providers. TWC also competes with cloud, hosting and related service
providers and application-service providers.
Other Operations Segment
TWC faces intense competition in its advertising business across many different platforms and from a wide range of
local and national competitors. Competition has increased and will likely continue to increase as new formats for
advertising seek to attract the same advertisers. TWC competes for advertising revenue against, among others, local
broadcast stations, national cable and broadcast networks, radio, newspapers, magazines and outdoor advertisers, as well
as online advertising companies.
Recent Developments
Common Stock Repurchase Program
In connection with the Company’s entry into the Merger Agreement, the Company suspended its common stock
repurchase program (the “Stock Repurchase Program”) on February 13, 2014. From the inception of the Stock Repurchase
Program in the fourth quarter of 2010 through February 12, 2014, the Company repurchased 92.9 million shares of TWC
common stock at an average price of $83.37 per share, or $7.744 billion in total. As of December 31, 2014, the Company
had $2.723 billion remaining under the Stock Repurchase Program authorization.
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