Cord Cutting is Squeezing Spectrum’s Cable TV Business, and Even Wall Street is Noticing





The cracks are starting to show with Spectrum and its parent, Charter Communications, and Wall Street is starting to sound the alarm.

On Monday, Wells Fargo and JP Morgan analysts both downgraded the investment rating of Charter’s stock, according to Both financial institutions cited the company’s financial and customer-based losses, slow growth, high costs, the industry’s competitive landscape, and the uncertain future of the Affordable Connectivity Program.

This comes as cord cutting has shaken the foundation of the cable TV industry. Cord Cutting 2.0, in which consumers cut the cable internet cord in favor of more wireless options like 5G home internet, is also causing the cable companies a lot of pain. The increased availability of 5G home internet was one of the reasons for JP Morgan’s rating adjustment, according to the report.

A spokesman for Charter couldn’t be reached for comment. On Friday, Charter CEO Christopher Winfrey reiterated his stance that 5G’s impact is “temporary.”

But that same day saw some dreary results from the Charter. During the fourth quarter of 2023, Spectrum lost another 320,000 TV customers. The company also lost more than 251,000 voice customers, and for the first time, 61,000 internet customers. In total, Spectrum lost more than 1,018,000 million customers in 2023.

JP Morgan anticipates a net loss of 100,000 broadband subscribers this year — a stark contrast to the 150,000 subscribers the firm previously estimated Charter would gain this year.

That cuts into the heart of the cable industry’s argument that while cord cutting might be hurting its video business, consumers will still want to stick with them for their high-speed internet. At least for now, that hasn’t been the case.

According to the report, Wells Fargo adjusted Charter’s rating from Overweight to Equal Weight and its price target from $460 to $340. JP Morgan moved the company’s stock rating from Overweight to Neutral and from $445 to $370.

Spectrum isn’t the only company hurting. Comcast’s 2 million cable customer loss in 2023 meant it was dethroned as the largest cable TV company in the U.S. Spectrum claimed the top spot, but only because it lost fewer subscribers than its rival.

JP Morgan and Wells Fargo weren’t immediately available for comment. Spectrum declined to comment.

Please follow us on Facebook and for more news, tips, and reviews. Need cord-cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.

Disclaimer: To address the growing use of ad blockers we now use affiliate links to sites like, streaming services, and others. Affiliate links help sites like Cord Cutters News, stay open. Affiliate links cost you nothing but help me support my family. We do not allow paid reviews on this site. As an Amazon Associate I earn from qualifying purchases.

Subscribe to Our Newsletter

* indicates required

Please select all the ways you would like to hear from :

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp’s privacy practices here.