Thursday, January 15, 2009

Time Warner Cable Expects Loss

The Austin Business Journal reports that Time Warner Cable Inc. plans to write off $15 billion in charges related to franchise fees, which will result in a loss for 2008. A few commenters at the site wonder if this will lead to yet another Time Warner price hike for Austin subscribers. I know basic rates just went up in November, but it does not appear that digital did. Could a digital rate increase be on the horizon?

A telling paragraph from the ABJ article:
Time Warner Cable two months ago projected its third quarter was stronger than expected, adding that revenue growth in 2008 would be slightly less than forecast because fewer customers were signing up for the company’s services.
One wonders whether this has anything to do with their PR nightmare of a last year.