Charter Communications’ ( CHTR Quick Quote CHTR - Free Report) Spectrum has launched the Spectrum TV app on Comcast’s ( CMCSA Quick Quote CMCSA - Free Report) XClass TV. Spectrum’s collaboration with XClass TV will make its tv app available automatically across all XClass TV and can be activated with voice remote and voice recognition.
Additionally, Spectrum is delivering its TV services across Android and
Apple’s ( AAPL Quick Quote AAPL - Free Report) smartphones, Roku, Xbox, Google Chromecast and Samsung smart TVs.
The XClass TV is currently available across all Walmart retail stores and Walmart.com. CHTR’s launch of the Spectrum TV app on XClass TV is in line with its strategy to collaborate with Comcast to develop and offer a new streaming platform on various branded 4K streaming devices and smart TVs. The joint venture will help it to attract new customers.
Charter’s Collaboration Strategy to Aid Stock Price
Charter shares have lost 29.7% in the year-to-date period compared with the Zacks
Cable Television industry’s decline of 24.5%.
CHTR experienced slow top-line growth in the second quarter of 2022. It reported revenues of $13.598 billion, which increased 6.2% on a year-over-year basis.
Growth slowed down due to lower new activation of Internet users. CHTR had 30.253 million Internet customers in the second quarter of 2022, up 2.1% year over year. Charter lost 21K Internet customers in the last reported quarter.
Also, CHTR lost 226,000 video customers in the second quarter, with the market being mostly saturated. The space is dominated by big streaming service providers like
Netflix ( NFLX Quick Quote NFLX - Free Report) and Amazon Prime Video, which heighten the competition for Charter.
Netflix has been spending aggressively on building its original content portfolio, and the company is still enjoying its leading position in the streaming industry. It is the most prominent competitor of CHTR in the video-streaming space.
However, the availability of Apple TV along with other streaming platforms on its TV app will help Charter ward off competition from Netflix and Amazon. As of Jun 30, 2022, CHTR had 32.124 million total customer relationships, up 1.1% year over year.
Also, Charter, which currently carries a Zacks Rank# 3 (Hold), recently announced the launch of Spectrum Internet, Mobile, TV and Voice services to more than 540 homes and small businesses in the Northwoods regions of Arbor Vitae, Woodruff, Three Lakes and the Town of Piehl, WI. You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Spectrum’s recent unveiling of advanced communications services in Marathon County, WI, is in line with its strategy of making investments to extend gigabit broadband networks to unserved communities across the United States and win customers as the first mover in these areas. This is expected further aid CHTR in warding off competition.
Charter’s strategy to invest $5 billion in constructing a fiber-optic network buildout will help provide broadband access to approximately 1 million customer locations across 24 states in the coming years. This, in turn, is expected to expand CHTR’s customer base extensively and aid in its top-line growth.