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SEC Filings

RENAISSANCE MEDIA GROUP LLC filed this Form 424B1 on 09/10/1998
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the particular service. Some program suppliers provide volume discount pricing
structures and/or offer marketing support. Through Time Warner, the Company
has long-term programming contracts for the supply of a substantial amount of
its programming. Such contracts generally are for fixed periods of time
ranging from one to five years and will be subject to negotiated renewal. Time
Warner invoices the Company on a monthly basis for the programming services it
provides to the Company (approximately 35 services as of the date hereof) in
an amount equal to the amount such programming services charge Time Warner,
plus an administrative fee. For the period through the date hereof the average
monthly per subscriber programming cost payable to Time Warner was $3.85. The
loss of contracts with certain programming suppliers could have a material
adverse effect on the Company, its financial condition, prospects and debt
service ability. In the event that the Company's arrangement with Time Warner
is terminated, the Company expects it will be able to obtain other programming
arrangements, although such arrangements may be at higher rates. This
arrangement with Time Warner lasts only as long as Time Warner retains an
equity interest in Holdings and Holdings holds all or substantially all of the
  Cable programming costs are expected to continue to increase due to
additional programming being provided to customers, inflationary increases and
other factors. In 1996 and 1997, programming costs as a percentage of the
System's revenues were approximately 20.1% and 20.5%, respectively and 20.8%
for the period January 1, 1998 to April 8, 1998. However, following the
Acquisition, the Systems will lose certain programming discounts that were
realized as a result of being part of a large MSO. See "Pro Forma Financial
Data" and "Management's Discussion and Analysis of Financial Condition and
Results of Operations."
  Monthly customer rates for services offered by the Systems vary from market
to market, primarily according to the amount of program offerings and costs of
operations. As of January 1, 1998, the monthly basic service rates for
residential customers for the Systems ranged from $5.20 to $11.00, per-channel
premium service rates ranged from $7.95 to $11.95 and tier service rates
ranged from $16.80 to $21.94. As of December 31, 1997, the weighted average
price for the System's monthly full basic service rate was approximately
$7.69. During January 1998, the Systems increased their subscription rates
from $7.69 to $7.88, on a weighted average basis (excluding bulk subscribers)
for basic service, and from $17.33 to $20.28, on a weighted average basis, for
  The Company emphasizes the importance of excellent customer service, which
it believes is critical to the successful operation of its business. The
Company intends to implement business approaches which permit it to provide
high-quality locally focused service to each community served. The Company
believes that a system-by-system, decentralized approach to operations is
required as each area served has distinct characteristics such as
demographics, economic diversity and geographic setting. The Company's local
management will strive to become an integral part of the communities served.
These efforts will enable the Company periodically to adjust its local service
offerings to meet the needs of a particular community.
  In the communities it will serve, the Company believes that many customers
prefer to personally visit the local office to pay their bills or ask
questions about their service. As a result, the Company intends to maintain
conveniently accessible local offices in many of its service areas. The
Systems' local staff, typically native to the areas they serve, are familiar
with the community's customer base. The Company believes that this combination
of local offices and local staffing will allow the Company to provide a high
level of customer service. Additionally, the Company believes familiarity with
its communities will allow it to customize its menu of services and respective
pricing to provide its customers with products that are both diverse and
  The Company will operate under a quality assurance program which stresses
responsibility and reliability among employees at all levels, and treats each
customer's concerns individually. To monitor the performance of its Systems
and the quality of its customer service, the Company will measure eleven
criteria on a weekly, and in some cases, daily basis. These criteria are:
service call response times, service call-to-total customers ratio,
installation response time, repeat service calls, new-customer service calls,
average outage duration, picture quality, occurrence of all-telephone-trunks
busy per measurement period, telephone answer rate and response time to
customer correspondence. The Company will also use market research tools to
gauge its performance