A New Connection with Customers TEAM BRUINGENUITY Jake Darby, Mark Glenn, Deepauk Murugesan

3Q’11 ∆ in Subscribers (1) TWC losing to competitors, not cord cutters Economy California Unemployment Rate Cord CuttingCompetition TodayTomorrow Threat Neutralized Future Threat Immediate Threat! TV Essentials plan developed for those affected most Affects entire industry Economy slowly stabilizing Future unclear as Netflix & Hulu continue to face hurdles Apple & Google actively searching for opportunities Market disruption imminent, but uncertain as to means Price war for lower customer tiers Lack of differentiation in video subscriber services + 131, , ,000 (128,000 ) Source: (1) 3Q’11 subscriber numbers provided in respective 3Q investor reports and 10-Q’s

Differentiation limited to secondary factors Signature Features iPad AppFiber-Optic HDInteractive TVSports Packages Availability Strong Penetration Slowed ExpansionContinuing expansionEverywhere Infrastructure CableFiber to HomeFiber to NodeSatellite - All Programming - All Premium channels - Multiple HD/DVR boxes Premium Package - DVR and additional boxes - Expanded Digital and HD Programming - Premium movie/sports packages - On-line Offerings (e.g. HBO Go, iPad app, etc.) Choice Package Digital Channels - Limited HD Programming - Short-term promotional offerings (Premium channels and/or DVR/HD boxes) Value Package $30$60$90 Price Differentiating Factors Parity in programming, pricing, and basic features

TWC customers are unsatisfied... Survey results reflect customer opinions, not objective performance data Previously established parity in programming, pricing, and basic features  Conclude that reliability and customer service are driving poor overall customer satisfaction Overall SatisfactionProgrammingCost of ServiceBilling Offerings & Promotions Performance & Reliability Customer Service Verizon FIOS DirecTV AT&T U-verse Time Warner Cable Scoring Legend JD Power 2011 Residential Television Customer Satisfaction Study How do we increase customer satisfaction?

Build satisfaction through improved connection to customers Issue: Low Customer Satisfaction Improve customer service and features Increase customer involvement in brand Allow customers to share with friends Expanded SignatureHome services New Loyalty Program New Referral Program ObjectivesSolutions

It’s all about the customer … every customer SignatureHome... Improve and expand availability to all customer tiers SignatureHome BenefitsExecution Plan 30 minute installation window Satisfaction guarantee Phased roll-out within Southern Cal. Start with high income residents to gauge willingness to pay Priority service line 24/7 advisors, no holding time 2X reimbursement for outages (minimal cost) Increase customer service reps Define metrics for customer satisfaction (e.g. call wait times, management referrals, JD Power survey, etc.) Priority Installation: $25 (Covers cost of labor for additional window time) (1) Annual Membership: $10-15/mo. (Revenue to support add’l customer service investment) (1) Support for installation calculation provided in appendix

Boost loyalty and pride in current subscribers Year 1 Free On-Demand (3) Free Premium Channel Free Pay Per View * Requires loyalty program sign-up for new and existing customers Year 2 6 mo. Tier Upgrade 6 mo. Sports Package $50 off cable bill Year 3 1 Year Tier Upgrade 1 Year Sports Package $75 off cable bill ~$10 Cost~$30 Cost~$75 Cost Loyalty programs proven to boost pride, involvement in brand Gain valuable customer insights, data through sign-up process Customer value of rewards exceed cost to TWC Churn Rate Improvement $739 current CLV CLV calculation provided in appendix Break even with 8% improvement in churn rate!

Target referral program to multi-family residences Referral Program Referral Program 1 ST Referral Free box/DVR service for both parties (1 Year) 2 nd Referral Referrer receives free package upgrade Free DVR for sign-up 3 rd Referral Referrer receives +$50 off current bill Free DVR for sign-up ~$50 Cost~$100 Cost SoCal home prices continue to drive residents towards apartments with high turnover rates Choice of cable TV provider often based on friend or neighbor CLV much greater than cost of referral Number of Referrals CLV calculation provided in appendix

Looking toward the future… The IndustryThe Customer Higher-priced, valued added services driving future revenues New technologies Broadband Higher margins cancelled out by new investment in technologies, infrastructure Cable TV Forecasts (1) Revenue Cable Subscribers +6.4% CAGR +1.9% CAGR TV still essential in everyday life, but prevalence of online video growing  Total TV- 2008: 4.2 hrs  2010: 4.4 hrs (2)  80-90% awareness of all online video (2) 25% multitasking daily across media (3) 40% Sources: (1) IBIS; (2) eMarketer, Dec 2010, (3) Ofcom Media Report, August 2010 % of TV Subscribers who also subscribe to online video (2)

The two worlds are beginning to collide Smart TV WIFI + hard drive pre-installed À la carte content via Apps available now Large On-Demand Library (e.g. iTunes) Steve Jobs: “Integrated television … simplest interface … I finally cracked it” Connected TV Penetration (1) (1) Morgan Stanley, May New MSO competition Leading tech companies evaluating new infrastructure investment Wireless and fiber-optic-based broadband currently in test and trial phases

TWC in prime position to capitalize on industry trends and TV/Broadband convergence 1)Promote Broadband’s competitive strength -vs. non-existent DBS -vs. slower AT&T -vs. unavailable FIOS 2)Develop new multi- platform technologies -Second Screen Apps -Wirelessly Connected and Personalized DVR TWC should reposition Broadband as primary service 3)Investigate Strategic Partnerships with Tech -Combine cable and tech industry strengths -Share infrastructure expansion costs TV customers declining, Broadband increasing Online Video Popularity TV Viewer Multi-Tasking

Summary Time Warner Cable losing subscribers primarily due to low customer satisfaction versus its competition  New dedication to premium customer service to associate TWC brand with quality and reliability  Loyalty and referral programs will also help to curb subscriber loss and boost involvement in brand While cord-cutting not significant issue, cable TV future is filled with uncertainty  Repositioning broadband as signature offering will ensure TWC brand maintains strong relevance in consumer’s minds

Appendix

Competitive Analysis Method of Content Delivery Traditional Cable Fiber-Optic direct to home Fiber-Optic to node Satellite Pricing and Incentives TV: $30-$55 TV/HSI: $40-$140 Multi-room HD: free HBO $15/mo for 3 months TV: $30-$55 TV/HSI: $40-$140 Multi-room HD: free HBO $15/mo for 3 months TV: $65-$90 TV/HSI: $75+ No annual TV contract; 2 year for bundles Multi-room HD: free TV: $65-$90 TV/HSI: $75+ No annual TV contract; 2 year for bundles Multi-room HD: free TV: $29-$92 TV/HSI: $49-$74 HD free for 6 months DVR: $8 TV: $29-$92 TV/HSI: $49-$74 HD free for 6 months DVR: $8 TV: $25-$84 Showtime free for 3 months DVR: $7 Multi-room HD: free TV: $25-$84 Showtime free for 3 months DVR: $7 Multi-room HD: free Differentiating Features 10,000 titles on-demand Price Advantages Whole-house DVR iPad app with live TV, guide, and remote DVR programming 10,000 titles on-demand Price Advantages Whole-house DVR iPad app with live TV, guide, and remote DVR programming 24,000 titles on-demand Superior HSI/TV Quality Sports in 3D Multi-Room DVR with remote programming FlexView 24,000 titles on-demand Superior HSI/TV Quality Sports in 3D Multi-Room DVR with remote programming FlexView IPTV NBA TV and MLB packages No contract required Free WiFi National hotspot network IPTV NBA TV and MLB packages No contract required Free WiFi National hotspot network NFL Sunday ticket availability for low tier Extensive foreign- language programming NFL Sunday ticket availability for low tier Extensive foreign- language programming Brand Perception Brand Perception Mid-tier products Quality/Service issues Poor customer service Mid-tier products Quality/Service issues Poor customer service High quality products and services Poor customer service High quality products and services Poor customer service High quality Good value and service Limited availability High quality Good value and service Limited availability High quality programming No HIS; Must bundle with competitors High quality programming No HIS; Must bundle with competitors 2.7M~.24M1.2M~.60M # of Subscribers in Southern California

CLV Calculation – Current Estimate AssumptionsMonthYearAssumptions # Customers 14,446 Per TWC Financials ARPU 113 1,356 Per TWC Financials Gross Margin %50% Per TWC Financials Direct Mktg (44) Per TWC Financials Average Churn Rate2.00%24% Estimates range 1.5 and 4% Average Retention Rate98%76% Calculation Annual Discount Rate10% Standard Acquisition Costs (125) Per eMetrics from 2002 Year: Margin per Year0 679 Cost of Direct Marketing - (44) Survival Rate0%76%52%28%4%0% Expected Profit Retention Costs Acquisition Costs (125) Profit/(Loss) (125) NPV of Profit/(Loss) (125) CLV 739

CLV Calculation – Loyalty Program AssumptionsMonthYearAssumptions # Customers 14,446 Per TWC Financials ARPU 113 1,356 Per TWC Financials Gross Margin %50% Per TWC Financials Direct Mktg (44) Per TWC Financials Average Churn Rate1.84%22% Estimates range 1.5 and 4% Average Retention Rate98%78% Calculation Annual Discount Rate10% Standard Acquisition Costs (125) Per eMetrics from 2002 Year: Margin per Year0 679 Cost of Direct Marketing - (44) Survival Rate0%78%56%34%12%0% Expected Profit Retention Costs - (10) (30) (75) Acquisition Costs (125) Profit/(Loss) (125) NPV of Profit/(Loss) (125) CLV 739

SignatureHome Pricing SignatureHome InstallsInstallSigHome Price of Installation - 25Suggested Pricing Daily Install Windows 8 4Reduced efficiency to guarantee customer windows Revenue per Day - 100Calculation Labor Cost (200) Assumes $25/hr for 8 hour day Daily Profit/(Loss) (200) (100) Cost per Install (25)

Value Chain ContentNetworksConsumersAggregators Broadcast Cable Studios Online MSOs