Charter’s video customers
Charter Communications (CHTR) lost net 66,000 residential video subscribers in the third quarter compared to 104,000 net losses in the same period a year earlier. The company’s number of residential video subscribers decreased ~1.6% YoY (year-over-year) to 16.1 million at the end of September 30. This reduction was mainly the result of intense competition from low-cost OTT (over-the-top) video streaming operators.
During the UBS Global Media and Communications Conference last week, Thomas Rutledge, Charter’s chair and CEO, spoke about Charter’s video business. Rutledge stated that the company expects recent trend lines to continue and doesn’t believe the video business will be substantially different two or three years from now.
Rutledge added, “There’s an opportunity for us in video to continue to have video products integrated with our data, mobile and wireline voice products in a package that is economically and, from a product-set perspective, better than our competitors can stand up and that we can, therefore, grow our business.”
Alphabet’s YouTube TV, Amazon’s Prime Video, and Netflix (NFLX) are leading providers of OTT offerings. In the third quarter, Netflix gained 7 million customers worldwide. Customers prefer to subscribe to OTT video streaming services at lower rates instead of paying high prices for cable TV or satellite connections. OTT offerings directly provide content to users over the Internet. In addition, OTT operators are investing in original content and are offering new original shows and movies to attract users.