uploads/2019/06/access-blurred-background-close-up-1629299-2.jpg

Charter’s Customer Numbers Can’t Escape the Cord-Cutting Trend

By

Updated

Charter lost 152,000 residential pay-TV customers

Like other cable companies, Charter Communications (CHTR) hasn’t escaped the challenge of cord cutting, as consumers are increasingly dropping traditional pay-TV plans for OTT (over-the-top) video streaming services such as Netflix (NFLX) and Amazon Prime Video. Charter lost 152,000 net residential pay-TV customers in the first quarter compared to 121,000 net losses in the first quarter of 2018.

Charter’s residential pay-TV customer count decreased YoY (year-over-year) to 16.0 million from 16.3 million. In the second quarter of 2019, Wall Street analysts expect Charter to see a net loss in its total number of residential pay-TV customers.

Article continues below advertisement

In comparison, cable rival Comcast (CMCSA) lost 107,000 net residential pay-TV customers in the first quarter. AT&T (T) and Dish Network (DISH) posted net losses of 544,000 and 259,000 traditional US pay-TV customers, respectively, in the quarter. In contrast, Netflix added 9.6 million customers worldwide in the quarter.

OTT market

Millions of users have already swapped their traditional pay-TV services for OTT services, which provide streaming content to consumers over the Internet at lower rates than the high prices associated with cable or satellite connections.

Advertisement

More From Market Realist