Charter Communications, the parent company of Spectrum, is preparing to launch a new bundled offering that combines cable TV with popular streaming services in an effort to combat cord cutting and retain customers.
Streaming Services Included:
Starting in the first half of 2025, Charter will offer its TV Select customers access to a variety of streaming services at no additional cost. The bundled offering will include the ad-supported versions of Max, Disney+, Peacock Premium, Paramount+, ESPN+, AMC+, Discovery+, BET+, and VIX, providing a combined value of up to $80 per month.
Four-Part Rollout Plan:
Charter’s President and CEO, Chris Winfrey, outlined the company’s four-part plan for rolling out this new offering during its earnings call last week:
- Secure programming agreements with streaming providers.
- Launch a direct-to-consumer app.
- Allow customers to upgrade to ad-free versions of the streaming services.
- Integrate all video subscriptions into a single video portal for easy management.
Winfrey acknowledged that the rollout is taking time but emphasized that the company is on track to launch the bundled offering in the first half of 2025.
Impact on Acquisition and Retention:
Charter hopes that this bundled offering will significantly improve customer acquisition and retention, particularly for its video services. While Winfrey refrained from making specific predictions about video growth, he expressed optimism about the potential impact on both video and internet subscriptions.
“I want to be careful not forecasting video growth,” Winfrey said. “We’re simply saying that it’s a way to add utility into our seamless connectivity relationships in a way that hasn’t existed.”
Industry Trend:
Charter’s move reflects a growing trend among cable companies to embrace streaming bundles as a way to address cord cutting and remain competitive in the evolving media landscape. By offering a combination of traditional cable TV and popular streaming services, Charter aims to provide greater value and flexibility to its customers to help keep them subscribed.
The question now is, will this move help keep customers, or will more customers learn about streaming and become more likely to ditch cable TV as they spend more time on streaming than traditional cable TV networks?