Time Warner Cable (NYSE: TWC) announced that it has begun trials in New York City of its IP-only video service.
Customers participating in the trial will receive a free Roku 3 streaming player and access to more than 300 live channels. Users will also be able to watch a section of 20,000 VOD TV episodes and movies.
The trial is open to TWC broadband customers in New York City, Mt. Vernon and New Jersey. Participants are asked to provide feedback through surveys.
Speaking to investors on Oct. 30 during TWC's third-quarter earnings call, TWC Chairman and CEO said the trial is focusing on a service that can replace the CPE-heavy nature of traditional pay-TV services. He added that TWC is less concerned about targeting younger, broadband-only consumers with skinny video packages.
"As we move forward and what we're trialing with this beta in New York, we're going to move that TWC TV capability toward a full video offering that, in fact, could be substitutional for the traditional set-top box-based video product," Marcus said. "And where we're headed is the ability of customers to access the complete video product without having to rent a set-top box from us, whether they use a Roku or they use ultimately another IP enabled-device.
"You can simply type in your username and password, and you have video," Marcus added. "And that's certainly a good guy in terms of the economics of doing the business. It's certainly a less capital-intensive model, in that customers will likely bring their own devices. And that will reduce the CPE capital requirements for us."
- read this Time Warner Cable press release
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