Charter Continues to Lose Video Subscribers

Charter’s video revenue

Charter Communications’ (CHTR) video revenue rose 2.1% ($4.4 billion) in the first quarter, driven by annual rate adjustments and promotional offers, and offset by a decline in video customers.

Charter Continues to Lose Video Subscribers 

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Charter lost residential video subscribers in Q1

Charter lost 145,000 video customers on a net basis during the first quarter, surpassing analysts’ anticipated loss of 82,000 customers. It lost 152,000 residential video customers in Q1 2019 but added 7,000 small-to-medium-sized business video customers. It lost 111,000 customers.

Cable rival Comcast (CMCSA) lost 107,000 residential video customers in Q1 2019, and Frontier (FTR) lost 54,000. AT&T (T) also lost video customers. Charter’s residential video customer count fell YoY to 16.0 million from 16.3 million. Despite the company’s efforts to develop new video products and provide high-quality integrated video service to its customers, it is losing video customers to cord-cutting and competition from low-cost, over-the-top video streaming players such as Netflix (NFLX) and Amazon (AMZN) Prime Video.

Furthermore, Walt Disney (DIS), Apple, and AT&T’s WarnerMedia are set to launch streaming services in late 2019. Disney’s service is set to cost $6.99 per month, less than Netflix’s $8.99 plan. Comcast is scheduled to launch a streaming service in early 2020 at ~$12 per month.