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Time Warner Cable Inc. (TWC - Analyst Report), the second largest cable multi service operator (MSO) in the U.S., has launched a video streaming application for Apple Inc.’s (AAPL - Analyst Report) iPad, iPhone and iPod touch customers. Launching the new application puts it into a level playing field with arch rival Comcast Corporation (CMCSA - Analyst Report) who is offering similar service through its Xfinity platform for the past two years. 

The latest version of the popular TWC TV application puts forward some brand new features including a premium on demand service for the Apple customers free of cost. TWC TV application offers its customers the flexibility to watch 4,000 TV shows and movies from 91 providers in both high and standard definitions.

The users of iPad and iPhone can download the application from Apple’s App store and can search the on demand directory by title along with the option of browsing TV shows, movies and kids channel among others. For the subscribers of TWC TV application, they can watch their favorite TV and movie shows anywhere in the house.

Going forward, Time Warner Cable will add some more high definition features content and wants to upgrade the TWC TV application for personal computers and other smartphones running on Google Inc.’s Android platform.

The online video streaming service providers, like Netflix Inc. (NFLX - Analyst Report), Hulu.com, YouTube, Amazon.com etc. have become sources of potential threat to the cable TV operators as they offer an extremely cheaper source of TV programming.

We believe that by launching this application, Time Warner Cable wants to capitalize on the popularity of the video streaming services. Popularity of iPhone and iPad are expected to improve the popularity of TWC TV. However, to gain mass acceptance the application should be upgraded to run on other operating systems.

We maintain our long-term Neutral recommendation on Time Warner Cable. The company also retains a Zacks #3 Rank, implying a short-term Hold rating.

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