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.
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.
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.