Time Warner Cable 2014 Annual Report Download - page 55

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TIME WARNER CABLE INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION—(Continued)
Selected residential subscriber-related statistics as of December 31, 2014, 2013 and 2012 were as follows (in
thousands):
December 31, % Change
2014(a) 2013 2012 2014 vs. 2013 2013 vs. 2012
Video(b) ....................................... 10,789 11,197 12,030 (3.6%) (6.9%)
High-speed data(c) ............................... 11,675 11,089 10,935 5.3% 1.4%
Voice(d) ....................................... 5,284 4,806 5,024 9.9% (4.3%)
Single play(e) ................................... 5,630 5,660 5,595 (0.5%) 1.2%
Double play(f) .................................. 4,525 4,741 4,842 (4.6%) (2.1%)
Triple play(g) ................................... 4,356 3,983 4,237 9.4% (6.0%)
Customer relationships(h) ......................... 14,511 14,384 14,674 0.9% (2.0%)
(a) The Company’s subscriber numbers as of December 31, 2014 reflect adjustments related to the treatment of employee accounts recorded during the
second quarter of 2014 that decreased residential high-speed data subscribers by 10,000, residential voice subscribers by 17,000, residential single
play subscribers by 19,000, residential double play subscribers by 4,000 and residential customer relationships by 23,000.
(b) Video subscriber numbers reflect billable subscribers who purchase at least the basic service video programming tier. The determination of whether
a video subscriber is categorized as residential or business is based on the type of subscriber purchasing the service.
(c) High-speed data subscriber numbers reflect billable subscribers who purchase any of the high-speed data services offered by TWC. The
determination of whether a high-speed data subscriber is categorized as residential or business is generally based upon the type of service provided
to that subscriber.
(d) Voice subscriber numbers reflect billable subscribers who purchase an IP-based telephony service, as well as, in 2012, a small number of
subscribers acquired from Insight who received traditional, circuit-switched telephone service (which was discontinued during the third quarter of
2013). The determination of whether a voice subscriber is categorized as residential or business is generally based upon the type of service provided
to that subscriber.
(e) Single play subscriber numbers reflect customers who subscribe to one of the Company’s video, high-speed data and voice services.
(f) Double play subscriber numbers reflect customers who subscribe to two of the Company’s video, high-speed data and voice services.
(g) Triple play subscriber numbers reflect customers who subscribe to all three of the Company’s video, high-speed data and voice services.
(h) Customer relationships represent the number of subscribers who purchase at least one of the Company’s video, high-speed data and voice services.
For example, a subscriber who purchases only high-speed data service and no video service will count as one customer relationship, and a subscriber
who purchases both video and high-speed data services will also count as only one customer relationship.
Revenue. Residential Services segment revenue increased in 2014 compared to 2013 primarily due to an increase in
high-speed data revenue, partially offset by decreases in video and voice revenue, each of which is discussed further
below. Residential Services segment revenue increased in 2013 compared to 2012 primarily due to an organic increase in
high-speed data revenue and two additional months of Insight revenue (which totaled $165 million), partially offset by
organic decreases in video and voice revenue, each of which is discussed further below.
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