Friday, April 29, 2011

Maybe Those Pipes Aren't So Dumb After All! Time Warner Subs Way Up ... Thanks to Netflix!

So, what's so wrong about being the supplier of "dumb" pipes? After all, being an arms merchant can be very very lucrative and profitable.

Case in point -- Time Warner Cable. The cable giant's broadband subscriptions are way way up -- 189,000 new subs in the last quarter alone (smashing analyst forecasts). And, get this, a primary driver for this surprising growth is cable's long-time bogeyman and nemesis -- that's right, Netflix! Consumer thirst for video is so high that they are craving bigger, faster pipes. Time Warner to the rescue! And, voila, all of a sudden Time Warner's CEO changes his tune and now proclaimeth "love" (that's right, love) for Netflix.

Ahh yes, the world is a wonderful, magical place ... so long as it is also profitable ....