What's Happening?
Charter Communications is shifting its strategy to stabilize its video business rather than focusing on subscriber growth. The company has narrowed video losses, shedding 211,000 residential video subscribers in the second quarter, an improvement from previous quarters. Charter's approach includes offering a new video bundle that incorporates ad-supported streaming apps like Disney+, Peacock, AMC+, and Hulu at no additional cost. The Xumo Stream Box is being used as the primary device for new video subscribers, and Charter is among the first cable operators to provide access to ESPN's direct-to-consumer offering.
Why It's Important?
Charter's strategy reflects a broader industry trend where traditional pay-TV providers are adapting to the growing demand for streaming services. By stabilizing its video business, Charter aims to reduce the drag on its overall business performance, potentially enhancing its competitiveness in the market. This approach could benefit programmers by expanding the distribution and sales of streaming apps, while also providing consumers with more flexible and cost-effective viewing options.
What's Next?
Charter plans to launch a digital store for customers to install, purchase, and upgrade direct-to-consumer apps on its platform, with a marketing push scheduled for the fall. The company is also preparing to deploy CBRS spectrum to 23 markets this year, which could improve its mobile service offerings. These initiatives may lead to increased customer engagement and retention, as well as potential growth in Charter's broadband and mobile services.
Beyond the Headlines
The shift towards streaming bundles and digital stores highlights the evolving landscape of the cable industry, where companies are increasingly integrating technology to meet consumer demands. This could lead to long-term changes in how content is delivered and consumed, with implications for media companies, advertisers, and consumers.
