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| The Cable King Crowned |
Charter Communications, with a reluctant swagger, snatched the dubious crown of America's biggest pay-TV provider. However, this "victory" came through the less-than-glorious method of losing subscribers at a slower rate than its rivals.
Charter's Spectrum lost 257,000 subscribers in the final quarter of 2023, ending the year with 14.12 million. This nudged them past Comcast, the previous "champion," which shed a whopping 389,000 customers. Wall Street, however, didn't celebrate. Charter's stock plummeted over 16% amid wider declines in both broadband and pay-TV subscribers.
This "ascension" reflects the industry's dire state. Charter's CEO even questioned the viability of pay-TV, calling it "broken." Analyst Craig Moffett echoed this sentiment, surprised by Charter's top spot considering Comcast's TV assets like NBCUniversal. He believes Comcast, not Charter, should be the "last defender" of cable video.
Moffett attributes Charter's "slower decline" to offering flexible, competitively priced packages and playing tough with entertainment companies. They demanded streaming services like Disney+ and ESPN+ be available to Spectrum subscribers to stay on air. After a blackout, they secured concessions from Disney, offering ad-supported versions to some customers for free. Similar deals with other programmers might be on the horizon.
The traditional TV landscape is a shrinking oasis. From a peak of 100 million a decade ago, only 55 million U.S. households still pay for it. Web-based alternatives like YouTube TV and Fubo TV are attracting around 18 million combined. Consumers are fleeing pay-TV at an alarming rate, with Comcast losing nearly 13% of its customers in the past year. The company now seems less focused on this declining business, shifting its attention to growing its Peacock streaming service.
Being the #1 cable-TV provider is hardly a prestigious title. Analysts say companies barely make any money from it anymore. Both Comcast and Charter have double the broadband subscribers compared to pay-TV customers.
Comcast, despite owning TV channels and streaming services, might be hurting its pay-TV business more than Charter. Its recent decision to make a highly anticipated NFL playoff game exclusive to Peacock angered fans but drew millions, becoming the most-streamed U.S. event ever. While this boosted Peacock subscriptions, it highlights the dilemma traditional media faces.
Sports remained a key draw for traditional TV, but even that's changing. Many sporting events are now exclusively streamed, further eroding the cable giants' grip on audiences.
Charter's "victory" is a stark reminder of the cable industry's struggle. While they may hold the crown, it's a crown of thorns, reflecting a declining and uncertain future. As cord-cutting accelerates and streaming takes center stage, the traditional TV model teeters on the brink, leaving one to wonder: will there even be a king left to claim in the years to come?
