But the company said on its conference call that it felt a “dramatic slowdown” in October as the economy soured, including lower net subscriber additions across its all of its businesses — cable, phone, and Internet — and signs of weakness in premium services like DVRs. Time Warner Cable also said its core advertising business was performing weaker than expected, with some lift from political advertising — which ended yesterday.
Most important: The economy and competition with Verizon (VZ) appears to have affected digital cable and Internet phone subscriber growth in Q3, which came in below some expectations.
One bright spot: Broadband subscriber growth, which shows that the cable industry is still dominating the phone industry in the broadband market — at least through September. Time Warner Cable added 222,000 net new broadband subscribers, beating Goldman Sachs analyst Ingrid Chung’s estimated 215,000.
Goldman expects the cable industry to represent 68% of overall Q3 broadband net subscriber additions — down from last quarter’s 78% share, as telcos increased promotional activity, but still strong.
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