July 31, 2020
In a switch, Charter Communications July 31 announced it added 102,000 Spectrum video subscribers in the second quarter, ended June 30. That compared with a loss of 150,000 video subs in the previous-year period. Charter ended the period with 15.6 million video subs — down 150,000 subs from 15.8 million subs a year ago.
The video additions counter an industrywide trend that has seen major pay-TV operators such as Comcast and AT&T hemorrhage subs to alternative distribution channels, including over-the-top video.
In prepared comments, CEO Tom Rutledge gave no reason for the video turnaround, except to heap praise and moral support for the good fortune.
“Our ability to grow our services this year for new and existing customers, is a testament to our operating strategy, the quality of our products and our significant investment in systems and people over the last several years,” Rutledge said in a statement.
To its credit, Spectrum was one of the first pay-TV operators to offer broadband-only subs online TV access through Spectrum TV Plus, which included a free Roku player.
Like other pay-TV operators, Charter is offsetting video uncertainty with high-speed Internet. With SVOD and AVOD platforms reliant on broadband distribution into consumer homes, Charter added 842,000 Spectrum Internet subs in the quarter — up 281% from 221,000 sub ads in the previous-year period. Charter, like Comcast, now has more broadband subs (26.3 million) than video.
“We continue to perform in a difficult and disruptive environment, and all of us at Charter are proud of our work in serving the communities in which we operate,” Rutledge said.