Charter residential video customers down 33,000 in 2Q 2015Tuesday, August 4th, 2015
STAMFORD, Conn. — Charter Communications, Inc. (along with its subsidiaries, the “Company” or “Charter”) today reported financial and operating results for the three and six months ended June 30, 2015.
For the past three years, Charter has significantly increased the competitiveness of its video product, by including more HD channels and video on demand offerings, attractive packaging of advanced services, improved selling methods, and enhanced service quality. Today, virtually all of Charter’s passings are fully digitized, with access to more HD channels than satellite TV offers, and as of June 30, 2015, 97% of video customers subscribed to the Company’s expanded basic video service.
Residential video customers decreased by 33,000 in the second quarter of 2015, versus a loss of 29,000 in the year-ago period. Excluding the impact of bulk digital upgrades, Charter reduced its residential video customer losses to 28,000 during the second quarter, versus 44,000 during the prior-year period.
In the coming months, Charter will introduce its new cloud-based user interface, Spectrum Guide, to its video customers in certain markets. Spectrum Guide makes video content search and discovery easier for customers, and fully enables Charter’s on-demand offering. In addition, Spectrum Guide will function on nearly all of Charter’s deployed set-tops. Charter is also poised to launch its new set-top box, World Box, which features downloadable security along with other advanced functionality, driving an enhanced customer experience and reducing incremental set-top box costs.
2014 2015 -------------------------- ------------ 1Q 2Q 3Q 4Q 1Q 2Q ----- ----- ----- ----- ----- ----- Customers 4,195 4,166 4,157 4,160 4,153 4,120 Net Additions/(Losses) 18 (29) (9) 3 (7) (33)
In May 2015, Charter entered into a merger agreement with TWC and, CCH I, LLC (“New Charter”), pursuant to which the parties to the agreement will engage in a series of transactions that will result in Charter and TWC becoming wholly owned subsidiaries of New Charter (the “TWC Transaction”). After giving effect to the TWC Transaction, New Charter will be the new public company parent that will hold the operations of the combined companies.
In May 2015, in connection with the execution of the merger agreement with TWC, Charter’s contribution agreement with Advance/Newhouse Partnership was amended pursuant to which Charter would become the owner of the membership interests in Bright House and any other assets primarily related to Bright House.