The new as well as the existing Time Warner Cable’s customers who subscribe to HBO or Cinemax channel networks will enjoy free and unlimited access to the online video content of HBO GO and MAX GO. Moreover, they can also stream high definition (NYSE:HD - News) movies and popular TV shows from a collection of 1,400 HBO titles and 400 Cinemax titles, anytime and from anywhere.
The demand for online video content is growing rapidly with the advent of tablets and smartphones coupled with the deployment of LTE networks, which provide enormous network speed.
As per the survey conducted by comSore, Inc. (NasdaqGS:SCOR - News) in November 2011, online viewership has increased 8% year over year to 183 million, where as average hours for online viewing for the month increased four times to 20.5 hours per viewers.
Looking at the enormous popularity of online viewing, the company is not only increasing its online video content but also aggressively rolling-out the next-generation DOCSIS 3.0 (also called Wideband) service, which offers downloading speed of up to 50 mbps, hence allowing the subscribers to stream HD movies that require minimum 3 mbps network speed.
Apart from improving the quality, we believe that such initiatives undertaken by the company will not only help improve the quality of their services but will also enable them to counter the threat arising from online video streaming companies like Netflix, Inc (NasdaqGS:NFLX - News) and Hulu, thereby improving the company’s churn rate.
Currently, Time Warner Cable has a Zacks #3 Rank, implying a short-term Hold rating.
Based in New York, Time Warner Cable Inc. offers various services to its U.S. customers like video, high-speed data and voice over its broadband cable systems.
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