Michelle Clancy ©RapidTVNews | 03-08-2011
Following the trend played out by its MSO brethren Cablevision, Time Warner Cable and Comcast, Charter Communications reported continued video subscriber losses during its second-quarter 2011 earnings anouncement, losing 79,900 in the period for a total of 4.17 million.
It also failed to meet analyst expectations and reported a net loss of $107 million (versus $81 million a year ago) on revenues of $1.79 billion, which were up only 2.2%.
The U.S. cableco clawed its way out of bankruptcy protection in 2009, but has continued to struggle in the face of the general cable malaise that has hung over the sector in the last few quarters. Charter has lost 5% of its video subs in just a year.
It's perhaps no surprise that Charter has beefed up its business services and broadband sales, partnering with satellite operator DISH Network as a distributor in some markets for non-video services. It has increased its non-video subscribers a full 26% year-on-year, meaning they account for a significant 13.9% of Charter's overall residential base.
Charter CEO Mike Lovett said that the company is changing its focus with deals like the DISH Network experiment to position itself for "long-term growth."
And indeed, the bright spots were in its non-traditional sectors: in Q2, digital cable customers rose by 4,900, high-speed Internet subscribers by 18,500 and telephone customers by 6,600.