The most interesting part of the company’s report is its subscriber numbers. Video subscriber totals fell by 306,000, from 11.72 million in the second quarter of this year to 11.41 million. High-speed data subscribers fell by 24,000, from 11.07 million to 11.05 million, and voice subscribers fell from 4.93 million to 4.81 million. The combined total subscriber number fell by 131,000, from 14.6 million to 14.47 million. The company blames the declines on its disputes with CBS Corp. (NYSE: CBS) and Journal Communications. Time Warner said its dispute with CBS cost it approximately $15 million in credit issued to subscribers for the temporary loss of the Showtime in some markets.
Comcast Corp. (NASDAQ: CMCSA) reported on Wednesday that it lost 129,000 cable video customers in the quarter and picked up 297,000 high-speed Internet subscribers and 169,000 voice customers.
Subscriber losses, particularly video subscribers, are a significant problem for cable carriers, along with higher retransmission fees charged by programmers like CBS. So far, the cable guys have not come up with a good response. Unless they do, subscriber losses could get worse as customers “cut the cord” in favor of broadband program delivery. Broadband does not have the variety and wide choice available to cable subscribers, but the costs are significantly lower and the content choices are apparently satisfactory.
Time Warner shares were up about 1% in premarket trading Thursday, at $118.00 in a 52-week range of $84.57 to $120.93. The consensus target price for the shares was around $125.60 before this report.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
