Charter’s (CHTR) Slow Internet Customer Growth Impacts Prospects – December 27, 2022

Communication charter (CHTR Free Report) Shares have lost 48.8% year-to-date compared to the Zacks Cable Television industry’s decline of 37.8%.

CHTR experienced slow earnings growth in the third quarter of 2022. It reported revenue of $13.55 billion, which increased by 3.1% year-on-year.

Growth has slowed due to low new activation of Internet users. CHTR had 30.33 million online customers in the third quarter of 2022, up 1.4% year-over-year.

Also, CHTR video customers were down 3.8% year-over-year in the third quarter, with the market mostly saturated. The space is dominated by large streaming service providers such as Netflix (NFLX Free Report) and Amazon Prime Video, which are ramping up competition for Charter Communications to grab a decent market share.

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Netflix is ​​spending hard on building up its original content portfolio, and the company continues to enjoy its leading position in the streaming industry. It is the most prominent competitor to CHTR in the video streaming space.

However, to boost its customer growth, Zacks #3 (Hold)-rated Charter Communications is strategically investing $5 billion in building a fiber optic network. This will help provide broadband access to nearly 1 million customer locations across 24 states in the coming years. you can see The full list of Zacks #1 Stocks (Strong Buy) today is here.

Charter Communications expand operations in rural areas to enhance prospects

Charter Communications recently launched Spectrum Internet, Mobile, TV and Voice services to more than 1,300 homes and small businesses in parts of Columbia and Sauk County.

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This new build is part of Spectrum’s strategy to boost user growth of Spectrum’s suite of services in rural areas. The company is investing nearly $5 billion, including more than 1 billion won in the FCC’s RDOF auction.

The recent expansion into broadband, Internet and mobile services follows the Company’s expansion of its broadband and Internet service offerings in Loudoun County, Tennessee, Wexford County, MI, and the Northwoods in the Arbor Vitae, Woodruff, Three Lakes and Peel Township, Wisconsin areas.

In addition, Spectrum offers television services throughout Wisconsin with over 200 HD channels and access to 85,000 on-demand movies and shows. Viewers can stream content across other platforms such as Kindle Fire, Samsung Smart TVs, and an Apple‘s (AAPL Free Report) Apple TV+ and Spectrum Originals using the Spectrum TV app.

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Apple TV+ recently broke records with 52 Emmy Award nominations across 13 titles and boosted the total number of Emmy Award nominations by more than 40% year-over-year in the less than three years since its worldwide launch.

CHTR cooperated with Comcast (CMCSA Free Report) to develop and introduce a new streaming platform on different branded 4K streaming devices and Smart TVs.

The joint venture will provide CHTR with Comcast’s Flex and hardware, helping it attract new customers to match the competition.


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