NEW YORK - In a couple of weeks, Time Warner Cable (TWC) is going to launch its testing in New York City for a cable service that doesn't require a cable box and simply dispatched over their client's home Internet, according to CBS News.
This is the start of something new, paving the way to expand beyond New York as competing cable companies attempt to bid to the younger crowd who are used to watching TV through Hulu or Netflix (NFLX) without a conventional cable box. The census of people jumping over cable service is growing as more prefer the Internet for their video fix.
On a phone call with some analysts, CEO Rob Marcus said that their current direction is the understanding of consumers for them to have the entire access to the video products without the need to rent a set-top box from them. One thing the company had to work for was to ensure that each channel was accessible for an Internet TV substitute that works through streaming-TV equipment such as a Roku.
According to Marcus, the customer doesn't need a tech anymore just to install the cable service. By simply entering your username and password, you already have the video.
It hasn't been clear yet as to how the service works to conventional TV. It will have several choices for every service plans, however, Time Warner Cable spokeswoman Nathalie Burgos refused to give feedback to questions regarding package features and prices.
With the current experiment, Time Warner Cable is eradicating the urgency for a first cable box, which normally goes along with a monthly fee for consumers, and giving in a Roku as a complimentary. The service would necessitate a TV that works together with a Roku. Burgos however wouldn't reply to questions as to how the service could impact a consumer's home Internet speeds.
Time Warner Cable acquired 232,000 Internet consumers, to 12.4 million. According to them, more clients are signing up for faster but costly Internet speeds.
Its net profit amounted 12 percent to $437 million, or $1.53 per share, hurt by costs associated to tie-up activity. Adjusted income per share surpassed analysts' anticipation. Profit developed 3.6 percent amounting to $5.92 billion, which was short of Wall Street's forecast.
Time Warner Cable shares expanded 3.8 percent to $192 in late afternoon trading.
