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Time Warner Cable Inc (TWC), Google Inc (GOOG), Comcast Corporation (CMCSA) – Investing in Content Delivery: Part Two

Time Warner Cable Inc (NYSE:TWC)Time Warner Cable Inc (NYSE:TWC) is the second largest cable company in the US, and is looking to differentiate itself from being just another cable company. Time Warner Cable Inc (NYSE:TWC) has taken initiatives to broaden the services that it offers to its customers like access to Wi-Fi throughout New York City.

Total capital expenditures in the first half totaled $1.6 billion, consistent with the company’s plans for full-year capital spending of $3.2 billion. This CapEx spending includes upgrading existing customers to faster speeds and working to create a seamless Wi-Fi network throughout New York City. This would mean that New Yorkers would be able to stay connected to a wireless network anywhere they go in the city near one of the 19,000 access points.

Time Warner Cable Inc (NYSE:TWC)’s earnings increased by 14.2% to $1.69 per share this quarter. Time Warner Cable Inc (NYSE:TWC) also had free cash flow of $732 million and paid out $191 million to support a dividend of 2.2%. Time Warner Cable Inc (NYSE:TWC) also repurchased $638 million worth of shares, which reduced share count from 315 million to 293 million year over year. Since free cash flow was less than what the company spent in shareholder remuneration, that means that the company did take on some debt to reward its shareholders.

Move over ISPs

Google Inc (NASDAQ:GOOG) continues to grow its search business while also venturing into other areas of the Internet. In 2011, Google Inc (NASDAQ:GOOG) announced that it would build a fiber optic network featuring speeds of 1 Gigabit per second, 100 times faster than the average American’s Internet speed. Since then, Google has plans underway to serve three other cities with this blazing Internet speed.

Google Inc (NASDAQ:GOOG) is not necessarily looking to enter the ISP business, but to create a new standard of Internet access. Google Inc (NASDAQ:GOOG) continues to to make nearly 95% of its revenue and profit from paid advertising. Google made $13.1 billion from advertising this quarter, the next biggest division at Google is Motorola Mobility coming in at $998 million last quarter.

Google Inc (NASDAQ:GOOG) saw an increase in revenue of 19% on increased mobile revenue and a 15% increase in revenue at Motorola Mobility. The company also saw an increase in earnings going from $8.42 to $9.54 per share in earnings. Google will continue to be at the mercy of the paid advertising market unless it can diversify some of its revenue stream into things like providing fiber optic Internet.

A different kind of model

Time Warner Cable Inc (NYSE:TWC) is still clinging on to the paid TV model, but continues to diversify itself. Google Inc (NASDAQ:GOOG)’s future is tied to the advertising industry and becoming an ISP and TV Network provider is just a side job.

Comcast Corporation (NASDAQ:CMCSA) is a media conglomerate that is involved in the production, and distribution of communication and entertainment products and services. Comcast Corporation (NASDAQ:CMCSA) has its stable broadband and cable distribution networks providing relatively stable income, and also produces its own original content, making it more vertically integrated than a competitor like Charter Communications.

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