Time Warner to Sell Cable Business

Time Warner, parent company of cable giant Time Warner Cable, said last week that it intends to spin-off the cable service as a separate company. The parent company owns 84% of the publicly-traded subsidiary, and has not yet announced details of how it intends to separate from the cable company which is still profitable and adding new customers.

Clearly, the cable business is in a state of flux, especially since it is so closely entwined with the high-speed broadband Internet access business. New applications and revenue streams remain just over the horizon, and everyone is searching for the next Google or Amazon. By selling off the cable operation, Time Warner could focus on its other businesses, perhaps leaving the cable portion free to respond more quickly to changes and opportunities as they arise.

These certainly are difficult times for the television industry and all the related services. Nobody knows for certain what the video landscape will look like even five years from now, but I promise you that it will be significantly different from today.