Time Warner Cable Inc. said today that it expects to record a pretax charge of about $15 billion and a loss for last year.
The second-biggest U.S. cable operator wrote down the value of its investment in Clearwire Corp. by $350 million. Chipmaker Intel Corp. today wrote down its stake in Clearwire, which is building a wireless mobile-phone and Internet network, by $950 million. Intel also reported fourth-quarter sales that trailed forecasts.
Time Warner Cable CEO Glenn Britt said in December that customer growth had slowed “dramatically” and demand for premium services continued to decline. In November, the company cut its 2008 sales forecast, citing slower subscriber growth and less revenue from pay-per-view services, premium channels and digital-video recording rentals.
I think the Wrath of Bob is just a scratch on the surface; all of the cable companies are probably in for a rough ride. Their rates keep going up even as DVDs and Internet-based video delivery are gaining traction. More and more, people are going to wonder why they're shelling out for something they use less and less.
In the last year, I've talked to and heard from more people than ever that they don't even bother with cable TV. And I myself have considered that if it wasn't for sports, I wouldn't have much use for it.
9 I'm one of them. Sure, I'd like to watch the Rockies on tv, and the odd Mythbusters, but it ain't worth $100 a month.
On the other hand, if my internet connection went south, I'd be really unhappy.
That's what the part in the highlighted section indicates.
Cleveland. I have no beef with the Queen City.
In the last year, I've talked to and heard from more people than ever that they don't even bother with cable TV. And I myself have considered that if it wasn't for sports, I wouldn't have much use for it.
On the other hand, if my internet connection went south, I'd be really unhappy.
Comment status: comments have been closed. Baseball Toaster is now out of business.