Lo-Res, 6 mb - Making Connections - Time Warner Cable

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Public access programming, such as Teen Talk in Brookline, Massachusetts, gave cable operators a way to differentiate programming in the marketplace and be responsive to community needs as the 1970s progressed.
A relative latecomer to cable television in the early 1970s, Steve Ross quickly made up for lost time. His trademark enthusiasm and charisma were welcomed by systems operators looking to cash out the equity they had built up in their systems. Ross, focused as ever on the potential for growth in the industry he was interested in at the time, practically sold himself on the value of some of his early cable television acquisitions. Even for an industry that was used to a fairly steady stream of acquisitions, Ross’ buying spree stood out. In October 1971, Ross’ company, Kinney National Services, announced the purchase of Television Communications Corp. (TVC), as well as Continental Telephone’s cable properties. By May 1972, the renamed Warner Communications, Inc. also had agreed to acquire cable systems operator Cypress Communications, including the Pottsville, Pennsylvania, system that traced its roots to industry pioneer Martin Malarkey. 1 In less than a year, Ross had amassed cable systems serving more than 340,000 customers, ranking his company and ATC in close competition for second to TelePrompTer in number of subscribers. 2 Ross’ acquisitive reach may have exceeded his grasp of the cable business. Many of the systems he purchased were small-town systems with limited channel offerings that hadn’t been upgraded in a decade or more. Systems in the Massachusetts towns of Medford and Somerville as of the mid-1970s, for instance, included such limited capacity amplifiers that two wires ran into the home: one for radio channels and one for a half-dozen or so television channels. Subscribers turned a switch to watch TV, or listen to the radio through their TV set speakers. 3 At the same time, newly constructed 36-channel systems Ross purchased in Columbus and Akron, Ohio, were hugely expensive and didn’t bring in much money. Residents of these relatively large cities could receive multiple broadcast channels in their markets, and the cable systems weren’t offering any additional programming of note. Customers were cancelling the service as fast as new subscribers were signing up. 4 Gustave “Gus” Hauser, who at the time was exploring building his own telecommunications business, met Ross through legendary investment banker Felix Rohatyn of Lazard Freres. Hauser had been talking with Rohatyn about using his position as executive vice president of Western Union International to buy a controlling interest in that company. Instead, Ross convinced him to join Warner, naming Hauser CEO of the newly minted Warner Cable Communications division in 1973. 5 Chapter 2 : Coming of Age : The 1970s 33
Page 5 and 6: Time Warner Cable and the Broadband
Page 7: Contents vii Welcome to the History
Page 10 and 11: Time Warner Cable Milestones Americ
Page 12 and 13: x Making Connections : Time Warner
Page 14 and 15: TelePrompTer, one of the first larg
Page 16 and 17: TelePrompTer CEO Irving Berlin Kahn
Page 18 and 19: 6 Making Connections : Time Warner
Page 20 and 21: TOP Feisty Philo T. Farnsworth batt
Page 22 and 23: TOP Milton Berle and other radio pe
Page 24 and 25: Cable antennas, initially referred
Page 26 and 27: Martin Malarkey founded the cable s
Page 28 and 29: Gene Schneider was one of dozens of
Page 30 and 31: “Hell, I’ve Got a Management Co
Page 32 and 33: TelePrompTer’s Irving Kahn demons
Page 34 and 35: In 1963, Ralph Roberts bought the f
Page 36 and 37: By the late 1960s, innovative cable
Page 38 and 39: Monty Rifkin persuaded his partner,
Page 40 and 41: The Cusp of Growth A decade after p
Page 46 and 47: TOP ATC’s status as a profitable,
Page 48 and 49: Pete Conrad: The Right Stuff ATC’
Page 50 and 51: Judy Braden, dispatch supervisor in
Page 52 and 53: Rifkin followed Walt Disney into th
Page 54 and 55: “It Was Easy to Get Ahead” Ambi
Page 56 and 57: Many early cable television program
Page 58 and 59: Jimmy Doolittle joined ATC as it ex
Page 60 and 61: Sterling Manhattan struggled to exp
Page 62 and 63: Demo vans that crisscrossed the cit
Page 68 and 69: “If I Could Ever Get Into Anythin
Page 70 and 71: Quick to grasp the potential of sat
Page 72 and 73: RIGHT Ted Turner’s willingness to
Page 74 and 75: TOP Warner Cable’s two-way, inter
Page 76 and 77: Warner Cable raced to produce or ac
Page 78 and 79: “If the Price Is Right …” The
Page 82 and 83: In order to control costs that were
Page 84 and 85: Jim Gray led Warner Cable during a
Page 86 and 87: Seven technicians who joined the co
Page 90 and 91: TOP Terry O’Connell was one of se
Page 92 and 93: Jack Gault, named president of ATC
Page 94 and 95:
The collapse of Warner Communicatio
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David O’Hayre, head of ATC’s me
Page 98 and 99:
Nick Nicholas, named president of T
Page 100 and 101:
TOP Jim Chiddix, who moved from Haw
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1986 IPO Values ATC at $1.6 Billion
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ATC to Stamford, Connecticut When N
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94 Making Connections : Time Warner
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The merger nearly foundered on the
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98 Making Connections : Time Warner
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100 Making Connections : Time Warne
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Dick Aurelio, the former New York C
Page 116 and 117:
“Cable’s Finest Hour” CNN had
Page 118 and 119:
Veteran Warner Cable engineer Roose
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Becoming Time Warner Cable After mo
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Jerry Levin, who was named co-CEO o
Page 124 and 125:
Despite the initial handshakes and
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The Full Service Network demonstrat
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Page 130 and 131:
“The Reality Was the Complexity
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Retransmission Consent The cable te
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Social Contract While Time Warner C
Page 136 and 137:
Page 138 and 139:
Time Warner CEO Jerry Levin ignored
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RIGHT Jerry Levin, right, and Ted T
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Consumer demand for cable news prog
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“We Can’t Let Them Do This” W
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Venturing Abroad With the ’92 Act
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The 1996 Telecommunications Act, si
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As far as the visitors from Intel w
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Road Runner, the first cable-delive
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“The Feeling of Satisfaction was
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Jim Gray, right, who retired from T
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AthenaTV, a satellite-based joint e
Page 160 and 161:
Chief technology officer Mike LaJoi
Page 162 and 163:
Time Warner president Richard Parso
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America Online Chairman and CEO Ste
Page 166 and 167:
Page 168 and 169:
AOL Time Warner CEO Jerry Levin, le
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“My sense was that the Internet a
Page 172 and 173:
Within a few months of the AOL-Time
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RIGHT AOL Time Warner Chief Technol
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AT&T chairman and CEO Michael Armst
Page 178 and 179:
Bob Pittman, the former AOL CEO who
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Advance/Newhouse to Bright House By
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Time Warner Cable’s NY1 acts as t
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The company-wide rollout of Voice o
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Time Warner Cable technicians answe
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Glenn Britt reached into the Time W
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TOP The 2004 conviction of Adelphia
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“I Felt I Was Truly Valued by Thi
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Shortly after Time Warner Cable wen
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“How Does It Get Better Than That
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Chairman and CEO Glenn Britt, cente
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Ads and other marketing materials p
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Time Warner Cable’s board of dire
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192 Afterword
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Acknowledgments We would like to th
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196 Notes
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12 ATC company timeline, p. 1. 13
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102 “The World of Business Deal o
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74 Time Warner, Form 10-K for the y
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Photo Credits Introduction iv-v Tim
Page 218 and 219:
Index A “Abel Cable” 11 Aberdee
Page 220 and 221:
M MacKinnon, Gail 135-136 Maffei, G
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