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Media Money
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Time Warner Cable [TWC
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] is kicking off a new chapter as a fully independent company at this year's National Cable Show; the company completed its spin-off from Time Warner [TWX
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] just last week. CEO Glenn Britt spoke exclusively with Media Money about the economy and the future of the cable industry.
Like Comcast's [CMCSA
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] Brian Roberts, Britt is confident that the cable business will continue to be recession resistant. Since the company saw a downturn in October, Britt says business has stabilized. He is worried about rising programming costs, particularly for sports programming, in this environment where they can't really pass along higher fees to consumers.
The big news on TWC is its launch of tiered pricing for different amounts of broadband usage. If you're downloading a movie every day, you'll spend more per month than someone who uses the internet just to check his or her e-mail.
It seems like it would frustrate many subscribers, but Britt says people could end up liking it: some will end up paying less, while those people paying more may get faster service.
Perhaps most interesting, Britt celebrated the end of synergy.
He helped put Time and Warner Brothers together, believing that all the pieces of a vertically integrated video company could cooperate and develop new products.
But now, with so much more competition and more regulation, he says that Time Warner and the Cable division will all do better off on their own. With Time Warner CEO Jeff Bewkes talking about spinning off AOL, now everything seems to be moving in the absolute opposite direction. Let's see if it works.
Questions? Comments?
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