Time Warner Cable Plans Higher-Level Service

Time Warner Cable's COO Landel Hobbs frequently hints at opportunities to generate more revenue from high-end customers. Now, the cable operator is planning to launch packages that could more than one-up the triple play.

Falling under a current "Homesuite" brand, the Turbo-charged bundles would be targeted at subscribers enticed by multiple DVRs, a run of premium channels, souped-up broadband and other features. Specifics of the "deluxe" bundles are unclear, and Time Warner Cable (TWC) declined comment.

A launch date is also uncertain, although a "Homesuite" offering is expected to debut in the Charlotte, N.C. area. TWC competitor AT&T U-verse moved into the region in 2008.

Included in the high-end package will be some benefits in the way of enhanced customer service. On a base level, a subscriber might be able to leapfrog others in various queues.

"Increasingly, we will tailor the multiproduct bundles and the service experience itself to the needs of specific customer sets," Hobbs said on a conference call April 29. "Bottom line: the era of one-size-fits-all in cable is coming to an end. Stay tuned for more on this strategy."

advertisement

advertisement

TWC has conducted a customer "segmentation" study allowing it to identify opportunities for up-selling. "Our analysis indicates that certain of our large and profitable customer segments continue to hold substantial untapped opportunity," Hobbs said earlier this year.

If a triple play (digital cable, phone and broadband) can cost an estimated $100+ a month, adding several DVRs, the Turbo broadband service, in-home wireless and movie channels en masse can top $250.

TWC says in a recent government filing that it's likely to continue to lose video subscribers, but is expecting to make up for it by persuading customers to take DVR service, premium channels and other add-ons.

Charlotte is a key market for TWC -- a Time Warner Cable Arena is located in the city center. After launching there, "Homesuite" would presumably then roll out in other TWC principal areas, which include Ohio, New York, Southern California and Texas. The working "Homesuite" moniker could be altered.

About one-quarter of TWC's 14.6 million customers subscribed to a bundle of TV, broadband and phone as of March 31. Nearly 60% subscribed to two or more of those, offering a ripe playing field for up-selling.

Revenues related to premium channels declined slightly in the January-March period compared to a year ago, but revenues from DVRs were up 16%. Half of all TWC digital cable customers have a DVR.

TWC is rolling out some enhancements to its digital phone product this year, which Hobbs said are focused "specifically on those customer segments that we expect to be most receptive."

Next story loading loading..