Cable One has the highest average revenue per customer of any publicly traded cable company in the United States, with the average customer paying Cable One $70.80 a month, mostly for internet access.

The company’s first quarter earnings growth of 5.5% reflect the company’s recent price increases and regime of low-allowance data caps, which have pushed 10 percent of its customers to pay an extra $40 a month to bring back unlimited access. Others are upgrading to costlier, faster tiers with more generous usage allowances.

“During the first quarter, we saw roughly 50% of our new customers choose our 200 Mbps or higher speed service and nearly 10% of our new customers opted to purchase our unlimited data plan,” said Julia Laulis, Cable One CEO.

Laulis

Cable One’s 200 Mbps plan (with a 600 GB data cap) costs $65 a month after promotions expire. A DOCSIS 3.0 modem lease fee of $10.50 applies. A $2.75 monthly internet service surcharge may apply. If a customer wants unlimited access to avoid overlimit fees, there is an additional charge of $40 a month (a 5 TB cap applies to the “unlimited plan”). Customers choosing a 200 Mbps broadband-only package with unlimited data will pay up to $118.25 a month.

Cable One’s broadband customers are concerned about staying within the data caps to avoid overlimit fees. While Comcast and Charter Spectrum customers consume over 300-400 GB of data per month (Comcast has a 1 TB cap, Spectrum only sells unlimited service), Cable One customers use an average of 290 GB, with usage growing at a 30-35% annual rate. Many Cable One customers have little choice either. Laulis noted that Cable One’s DSL competition is not very relevant when customers want to watch streaming video. Speeds are often so slow, customers do not have a good experience streaming HD video over DSL.

Cable One is also shedding its video customers in record numbers, with just 305,000 of its cable TV customers left. More than 29,000 departed year over year, and that number continues to rise as consumers rebel against the company’s high prices and unwillingness to negotiate.

MoffettNathanson warned that Cable One’s high pricing may eventually price itself out of broadband growth, as consumers elect to sign up with telephone companies instead. But many of its service areas are still served by low-speed DSL, and despite Cable One’s high cost, the company added 10,600 new internet customers in the last quarter.

In addition to raising prices, the company also plans to spend between $9-11 million to change its name from Cable One to Sparklight over the next two years.

Effective today, Hulu is now under the full control of the Walt Disney Company, ending a decade of a sometimes-uneasy partnership between rivals NBC-Universal, 21st Century Fox, Disney-ABC and Time Warner (Entertainment).

This morning, Disney and Comcast, the last two partners in the streaming venture, reached an agreement that will give full operational control of Hulu to Disney, in return for either company having the right to force Disney to buy out Comcast’s remaining 33% interest in the service beginning in 2024. In effect, with Comcast giving up its three seats on Hulu’s board and its veto power, the cable company now becomes a passive partner in the venture. At a Disney-guaranteed value of at least $27.5 billion five years from now, Comcast could eventually walk away from Hulu with at least $9 billion in compensation.

Today’s agreement means Disney will own and control multiple streaming services. Disney today announced it has big plans for Hulu, despite preparing to launch its own Disney+ streaming service and already operating its own streaming platform for ESPN. Disney CEO Robert Iger said Disney+ will now be focused on kids and family-friendly entertainment, while Hulu will be Disney’s platform for adult-focused movies and series. Disney’s recent acquisition of the 20th Century Fox content library and FX’s suite of cable channels gives it plenty of additional content to bring to both of its general entertainment streaming services.

To make sure of a smooth transition, both companies have agreed to a lucrative extension of Hulu’s license to stream NBC-Universal content and networks, as well as a retransmission consent agreement to allow Hulu Live to continue carrying NBC-Universal networks and TV channels until the end of 2024. That will deliver a significant revenue boost to Comcast, which can use the money to help build its own forthcoming streaming platform, launching in 2020.

“We are now able to completely integrate Hulu into our direct-to-consumer business and leverage the full power of The Walt Disney Company’s brands and creative engines to make the service even more compelling and a greater value for consumers,” said Iger in a statement.

NBC-Universal chief executive Steve Burke said in a statement that the deal is “a perfect outcome for us” because the “extension of the content-licensing agreement will generate significant cash flow for us, while giving us maximum flexibility to program and distribute to our own direct-to-consumer platform.”

For consumers, Iger is expected to consider offering a discounted bundled package to Hulu subscribers who also sign up for Disney+. With a combination of Hulu and Disney+, Netflix’s biggest U.S. rival is about to get considerably bigger.

CenturyLink is considering getting out of the consumer landline and broadband business and instead focusing on its profitable corporate-targeted enterprise and wholesale businesses.

CenturyLink CEO Jeff Storey told investors on a quarterly conference call that the phone company had hired advisors that will conduct a strategic review of all CenturyLink products and services targeting the consumer market and is “very open” to the possibility to selling or spinning off its residential business, assuming it can find an interested buyer.

“Let me be clear, we’re early in what I expect to be a lengthy and complex process,” Storey told investors, noting the company’s first priority is to take care of its shareholders. “During our review, we will not modify our normal operations or our investment patterns. I can’t predict the outcome or the timing of this work or if any transactions will come from it at all. Our focus, though, is value maximization for shareholders. If there are better paths to create more value with these assets, we will pursue them.”

CenturyLink’s landline network is similar to those of other independent telephone companies. There are significant markets where extensive upgrades have introduced fiber broadband service and high-speed DSL, but most of CenturyLink’s network remains reliant on copper wire infrastructure that is not capable of supplying high speed internet to customers.

Like most large independent telephone companies, the majority of CenturyLink’s residential customers can only purchase slow speed DSL service offering less than 20 Mbps. A growing number of customers have canceled service after running out of patience waiting for upgrades. CenturyLink executives told investors last week the company is abandoning investments in bonded or vectored DSL upgrades, claiming anything other than fiber optics is not “competitive infrastructure.”

CenturyLink also admitted it is losing customers after deciding to shelve its unprofitable, competing Prism TV product. The only growth on the consumer side of CenturyLink is coming from significant broadband upgrades.

“In the first quarter, we saw a net loss of 6,000 total broadband subscribers. This quarter’s total was made up of declines of 83,000 in speeds below 20 Mbps and growth of 77,000 in speeds of 20 Mbps and above,” reported CenturyLink chief financial officer Neel Dev. “Within those gains, we added 47,000 in speeds of 100 Mbps and above. Voice revenue declined 12% this quarter. Going forward, we expect similar declines in voice revenue. As a reminder, the decline in other revenue was driven by our decision to de-emphasize our linear video product.”

Dev reported that 55% of CenturyLink’s customers have access to speeds of 20 Mbps or less, and the company has ceased spending marketing dollars advertising slow speed DSL. Instead, it “microtargets” service areas where customers can sign up for service faster than 20 Mbps.

Observers note CenturyLink’s interest in its landline business has been waning for some time. The change in attitude can be traced back to CenturyLink’s merger with Level 3, a very profitable provider of connectivity to the enterprise and wholesale markets. CenturyLink’s commercial services are consistently earning most of the revenue the company reports to shareholders every quarter, with residential services declining in importance.

A sale of CenturyLink’s local landline and consumer-focused internet businesses could be hampered because of the likely lack of buyers. Frontier Communications had been an aggressive player in acquiring landline networks cast off by Verizon and AT&T, but that company is now in financial trouble and faces major debt issues. It would be an unlikely bidder. Windstream is still in bankruptcy reorganization and an acquisition is out of the question. Smaller independent phone companies like Consolidated Communications (owner of former FairPoint Communications), also likely lack financing to achieve such a deal, especially as interest rates continue to rise. CenturyLink also has the option of spinning off its residential business into a new corporate entity, but would likely result in a financially hobbled enterprise that may have trouble attracting capital to continue funding further expansion.

Apple today released a software update for iOS device owners and some smart televisions that includes a new Apple TV streaming app designed to simplify the online streaming experience.

The Apple TV app works similarly to Roku’s collection of subscription services. Through the app, viewers in 100 countries can subscribe to individual networks and access them without launching multiple separate apps to watch. Apple TV app also manages billing and collects viewing interests to provide recommended new shows and movies.

At present, most premium channels are available through the app for subscription, but you will pay a non-discounted price for each service, often at a premium. HBO, for example, can be had for as little as $5 a month through some platforms, but costs $14.99 through Apple TV. Other services often run their own discounted specials, but Apple TV customers will not get that pricing. Cord Cutters News reports these networks were available for purchase as of this morning (others are being beta tested):

• HBO
• Showtime
• Starz
• Cinemax
• Epix
• Smithsonian Plus
• PBS Living
• Acorn TV
• Sundance Now
• Lifetime Movie Club
• Urban Movie Channel
• Tastemade
• Curiosity Stream
• MTV Hits
• Comedy Central Now

Apple TV is a precursor to the company’s more elaborate streaming and original content platform — Apple TV+ — expected to launch this fall. For now, Apple is taking a cut from reselling other companies’ content and wrapping it around its own interface. Some early subscribers report Apple TV subscribers get more generous multiple viewer allowances, and a large selection of live streams of certain networks like HBO that are not even available from HBO’s own app. Because finding content across a wide array of subscription services is becoming more complicated, users can also access a search utility to find favorite shows.

By developing its own ecosystem, Apple hopes to build an audience and subscriber loyalty by getting customers accustomed to visiting Apple TV to access their subscription content, which gives Apple an audience to sell other programming and content. In return, customers will not have to install multiple apps, or keep track of usernames and passwords for each of them.

Owners of recent Apple devices, as well as those with 2019 Samsung smart TVs (and some 2018 models) will find software updates including Apple TV starting today. Later this year, customers with certain Vizio, LG and Sony TVs will be able to use the TV app using AirPlay 2.

There are some caveats. Netflix is missing. The largest streaming provider in the world has made it clear it will not be a part of the Apple TV app. Also, only a handful of cable and streaming providers have signed on to allow customers to authenticate their TV subscriptions through the Apple TV app so far: Charter Spectrum, DirecTV Now and PlayStation Vue.

Those looking for convenience might find the Roku or Apple TV platforms a good place to bring content from multiple services together, but those looking for the best price will save money shopping around for subscription deals not available from Apple TV.

Spectrum Mobile customers who sign up for cell service can expect an inquiry about their creditworthiness, and some customers with near-perfect FICO scores are embarrassed to discover Spectrum considers them too risky, thanks to an Experian credit scoring model developed specifically for utilities, phone and cable companies.

When you inquired about our device(s) and mobile service(s), we evaluated your credit score of 797 and determined we can only offer you a limited number of our available devices for purchase.

This decision was made solely by Spectrum Mobile though such decision was based on the information supplied by Experian, a consumer reporting agency. The terms we are offering may be less favorable than the terms offered to customers who have a better credit score. Experian will not be able to provide you with any information relating to Spectrum Mobile’s decision or any other Spectrum policies, devices, and/or services.

In practical terms, the letter means this Reddit contributor will be limited to just one line of service on his account.

Spectrum Mobile is relying on a special credit risk management product to score its customers. The TEC Connect 2.0™ “risk model” stands for “T”elecommunications, “E”nergy, and “C”able, and was created exclusively for utility and telecommunications companies. It was designed to predict the likelihood you will pay utility and cable bills on time and in full. During times of economic distress, telecom and energy bills often get paid later than mortgages, auto loans, and credit cards. Still, with a score range of 400-900, the recipient’s 797 ranking represents a low credit risk, probably undeserving of a one line limit.

What counts the most towards your TEC Score?

Experian cited four adversities on this individual’s TEC Connect 2.0 report:

00011 – The date you opened your oldest joint revolver is too recent
00070 – Lack of sufficient relevant real estate/HELOC account information
00003 – Credit amount on your open first mortgage account is too low
00058 – Your most recently opened account is too new

That would seem to imply the customer is a relatively young borrower, or someone who closes older credit lines, which can count against your credit score. The report also seems to include conflicting information about any owned property and if it is mortgaged, which might mean the applicant is actually a renter. Recently opened credit accounts will diminish a TEC Score, and having a recent history of opening multiple new accounts could signal you are potentially over applying for credit or are overextended. Even if your FICO score reflects a good credit history, if you are a late-payer of energy or telecommunications bills, your TEC Score will reflect that and expose you to rejection of your application, line limits, and advance deposits.

Critics of Experian’s TEC Connect score note many utility companies do not report or report incomplete payment histories, many accounts are often missing from credit reports, and even those with perfect payment histories and a high FICO score can still run afoul of TEC Connect’s scoring model.

If you receive notice of an adverse credit decision, always take advantage of the opportunity to receive and review your report, free of charge. You are entitled to correct errors and have those corrections sent on to companies like Spectrum Mobile for a credit re-evaluation.