Charter Leverages Video to Stabilize Broadband; Stock Pops
Charter Communications reported a rare quarterly gain of 44,000 video subscribers and narrower broadband losses, driven by lower churn, new pricing and packaging, use of the Xumo Stream Box, and bundling of programmer streaming apps at no added cost. The company continues to invest heavily in its HFC network to enable symmetrical multi-gig service, expand Spectrum Mobile via a new T-Mobile MVNO deal, and deploy CBRS offload, while signaling that capex will peak in 2025 and then decline. Charter’s mixed but improving metrics and strategy to use video as a tool to support broadband helped lift its stock nearly 12%.
Key Takeaways
- Charter added 44,000 video subs in Q4 — first notable gain since 2020 — helped by new bundles, pricing and the Xumo Stream Box.
- Broadband losses narrowed to 119,000 (better than expected), but management warns net-add growth remains a 'game of inches.'
- Capex will peak in 2025 (totaling ~$11.65B) as Charter upgrades HFC for symmetrical multi-gig; stand‑alone capex targeted to fall to ~$9.5B in 2027 and ~$7.5–8B by 2028–29.
- Wireless strategy accelerates: +428k Spectrum Mobile lines, CBRS offload at 88%, and a business-focused T‑Mobile MVNO to expand enterprise offerings.
Why It Matters
This quarter crystallizes a strategic shift: Charter is using video as a retention and bundling tool rather than a standalone growth engine — a pragmatic play that stabilizes churn and supports broadband ARPU without re-inflating content spend. For streaming platforms and MVPDs, Charter’s free programmer-app bundling and Xumo push signal a low-cost distribution vector that prizes customer stickiness over pure subscriber monetization. Network investments to enable symmetrical multi‑gig and expanded CBRS/T‑Mobile MVNO capacity position Charter to better defend against fiber and FWA competition while setting up a predictable post‑peak capex cadence that investors and M&A players will be watching closely.
Read full article at lightreading.com
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