Time Warner Cable
), the second largest cable multi service operator ('MSO') in the
U.S. is aspiring to win back some of its lost video subscribers
by way of a new advertisement campaign. The new marketing effort
aims to convey to its previous customers that the company's cable
service has improved over the prior year.
The Better Guarantee - the company's new advertisement
initiative is an extension of its brand image campaign, which
began last year to retain existing customers, in addition to
luring new ones. Time Warner cable wants to popularize the effort
through broadcast, print and online media and would cost $50
million to the company.
This new ad campaign offers a 30-day money back scheme, which
ensures the customers will get back their money in case of lack
of improvement in their Internet service. Through this campaign,
Time Warner Cable wants to challenge Verizon's fibre optic
television - FiOS TV, which hasn't delivered the monthly savings
on net bill that it promised to its customers.
In the U.S., the MSOs are facing fierce competition from
telecom service providers like
Verizon Communications Inc.
), who are quickly gaining market share from these MSOs by
offering fiber-based TV and other high-speed broadband services
to their subscribers.
Notably, Time Warner's arch rival
), is also facing increased competition in its video service
segment has in addition started a new marketing campaign for its
Internet TV Xfinity to win back its lost customers.
We expect Time Warner to benefit from this marketing effort as
the advertisement highlights the area where the company has
improved since last year including new smartphone applications,
on-demand TV options and enhanced customer service among
Furthermore, the company is also investing in network
infrastructure and has undertaken a massive 'Ethernet Everywhere'
strategy. This IP-based Ethernet services over fiber will allow
Time Warner to enhance its data transfer speed, which in turn
will aid the company to improve its falling video subscriber
We currently, maintain a short-term Zacks Rank #3 (Hold) on
Time Warner Cable.
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