Insight loses video, phone subscribers in Q3 2011

With Insight Communications reporting that it lost basic video, digital video and telephone subscribers during the third quarter, Time Warner Cable (NYSE: TWC) may face some challenges in improving operations at the cable MSO that it has agreed to acquire for $3 billion in cash.

Insight said Thursday that it lost 9,800 basic cable subscribers during the third quarter, and that it also lost 3,700 digital video customers and 4,200 phone customers. While it gained 6,300 high-speed Internet subscribers during Q3, it lost a total of 11,400 revenue generating units (RGUs) during the quarter.

With systems in Kentucky, Indiana and Ohio, Insight faces competition from AT&T's (NYSE: T) U-verse TV and other cable overbuilders. As of Sept. 30, Insight counted 670,000 basic cable customers, 646,300 cable modem subscribers and 292,800 telephone subscribers.

Time Warner Cable agreed to buy New York-based Insight in August for $3 billion in cash. The Federal Trade Commission approved the merger in September, and Insight said it expects to close the deal during the first half of 2012.

For more:
- see Insight's Q3 earnings release

Earnings summary: Sizing up the cable industry in Q3 2011

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