Charter streaming bundles slash video subscriber losses to 21,000
Charter Communications reduced quarterly video subscriber losses to 21,000, attributing the improvement to a new strategy of bundling streaming services like Disney+, Max, and others into its traditional Spectrum video plans. However, reported video revenue declined by 9.7% to $3.15 billion, largely due to the accounting treatment of $251 million in streaming-app costs.
Key Takeaways
- Video subscriber losses dropped by 73.7% year-over-year, leaving Charter with a base of 12.5 million video customers.
- Reported video revenue fell 9.7% to $3.15 billion, primarily due to higher streaming-app costs and a shift toward lower-priced packages.
- Streaming-app costs rose to $251 million for the quarter, up from $67 million a year earlier, as Charter absorbs the fees for bundled DTC services.
- The Spectrum App Store now integrates Netflix subscriptions and allows à la carte streaming management for non-video customers.
Why It Matters
Charter’s aggressive bundling pivot demonstrates a viable path for cable operators to defend their video footprint by becoming the default aggregator for fragmented streaming apps. By including roughly $127 in monthly retail streaming value at no extra charge, Charter is effectively subsidized by programmers in exchange for reach, though the accounting treatment of these costs is currently depressing reported video margins. This shift moves the industry away from simple linear distribution toward a hybrid model where the platform's value lies in subscription management and cross-platform search. Watch for activation rates of these bundled apps as the true indicator of long-term retention value.
Additional Context
The second-quarter results follow a series of strategic carriage renewals where Charter leveraged its scale to extract direct-to-consumer (DTC) concessions from major programmers. In September 2024, per Broadcasting & Cable, Charter secured a multi-year deal with Warner Bros. Discovery to include ad-supported Max and Discovery+ in Spectrum bundles, adding to previous agreements with Disney, Paramount Global, and AMC Networks. By May 2026, CSI Magazine reported that Spectrum had expanded these offerings to provide more than $125 in aggregate retail streaming value to TV Select customers through its 'Seamless Entertainment' platform.
Beyond video, Charter is navigating a highly competitive broadband environment. While video losses slowed, the company reported a loss of 172,000 internet customers in Q2 2026, per PR Newswire (July 2026), alongside a significant 18.9% increase in mobile service revenue. Investors reacted cautiously to the earnings report; despite the improved video metrics and an EPS beat, shares fell over 12% in premarket trading on July 24, according to Investing.com, as the market weighed the high costs of the streaming transition and continued pressure on the core broadband business. To further bolster its scale, Charter is also moving forward with the integration of Cox Communications, a transaction expected to add approximately 12.4 million in net debt but grant the company broader reach for its converged connectivity and entertainment strategy.
Read full article at subscriptioninsider.com
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