Home » Altice USA » Recent Articles:

14,000 Consumers Cut Cable TV’s Cord Every Day Says New Study

The top 10 service providers in the United States collectively lost over 1.25 million paid television customers in the first three months of 2019, providing further evidence that cord-cutting is accelerating.

Multiscreen Index estimates if that trend continues, an average of 14,000 Americans cancel their paid cable or satellite television service daily.

AT&T suffered the greatest losses, primarily from its satellite television service DirecTV. More than a half-million satellite customers canceled service in the first quarter of the year. AT&T lost another 89,000 streaming customers as news spread that the service was increasing prices and restricting generous promotions to attract new subscribers. DISH Network, DirecTV’s satellite competitor, also lost more than 250,000 customers.

Many cable television providers announced this quarter they would no longer fret about the loss of cable TV customers, and many have dropped retention efforts that included deeply discounted service. As a result, customers are finding it easier than ever to cancel service. Comcast lost 107,000 TV customers, while Charter Spectrum lost 152,000. Spectrum recently increased the price of its Broadcast TV Fee to $11.99 a month and has pulled back on promotions discounting television service.

United States
Service Change
quarter
Subscribers
(millions)
1,280,200 81.90
AT&T TV/DirecTV -544,000 22.36
Comcast -107,000 20.85
Charter Spectrum -152,000 15.95
DISH Network -266,000 9.64
Verizon FiOS -53,000 4.40
Altice USA -10,200 3.30
Sling TV 7,000 2.42
DirecTV Now -89,000 1.44
Frontier -54,000 0.78
Mediacom -12,000 0.76
Source: informitv Multiscreen Index.

“There were losses across the top 10 television services in the United States, with even the DirecTV Now online service losing customers following previous heavy promotion. Between them, they lost over one-and-a-quarter million subscribers in three months. They still command a significant number of customers but the rate of attrition has increased,” said Dr. William Cooper, the editor of the informitv Multiscreen Index.

The total figures for the quarter show roughly 81.90 million Americans are still paying one of the top-10 providers for cable or satellite television service, amounting to less than 70% of television homes — a significant drop. Privately held Cox Communications is excluded because it does not report subscriber numbers or trends.

JPMorgan Pushing for Charter-Altice Merger to Bring Ruthless Cost-Cutting to Spectrum

JPMorgan “still believes in the potential of an eventual merger of Charter Communications with Altice USA, despite a cool-down in tie-up talk,” according to a short piece in Seeking Alpha.

The Wall Street bank favored a Charter merger with Altice, which owns Cablevision and Suddenlink, because Altice has proven its ability to ruthlessly cut costs out of the cable business, potentially bringing $2.7 billion in synergy savings from layoffs, outsourcing, and killing off employee perks.

JPMorgan analyst Philip Cusack believes the biggest merger prize would be a combination of Cablevision’s footprint in downstate New York, Connecticut and New Jersey with Charter-Spectrum, which serves almost all of New York State and already has a presence in Manhattan and other boroughs in New York City. Cusack also argues Cablevision’s Optimum business would be well served by a familiar executive. Rutledge was Cablevision’s chief operating officer before moving to Charter.

Two years ago, Altice considered acquiring Time Warner Cable, before investors forced Altice to pull back on further acquisitions that would result in even more debt for the European telecom company.

Among the likely challenges would be antitrust and regulatory roadblocks, particularly if Charter is the lead company. Charter is still in hot water with New York’s Public Service Commission and its own merger with Time Warner Cable was decertified by the regulator last summer. It could be a long leap from antagonizing New York’s telecom regulator and the attorney general to winning a green light for yet another cable merger.

AT&T Fiber Buildout Could Steal Two Million Charter and Comcast Customers

As AT&T continues to build out its fiber to the home network in its landline service areas, the company estimates it could achieve 50% market penetration by 2023, triggering a growing wave of consumers dropping cable in search of a better deal.

Cowen, a research firm, issued a report to clients indicating if AT&T achieves its expansion goals, it will be a tough competitor to Comcast and Charter.

Both cable companies have pulled back on promotional and customer retention pricing in recent years, allowing customers to follow through on threats to disconnect service. AT&T Fiber is expected to be a frequent destination for those unhappy cable customers. As AT&T’s fiber network expands, it could eventually grab one million customers each from Comcast and Charter, as well as another 200,000 cancelling service with Altice’s Suddenlink.

If the estimates prove accurate, the costs to earnings will be considerable — Comcast will lose around $1.1 billion, Charter $885 million, and Altice $162 million.

AT&T claims it has expanded fiber to the home service to three million homes each of the last two years. It plans to continue expanding fiber buildouts for an additional three years, wiring up communities where a return on investment can be achieved.

To stem customer losses, the cable industry will likely have to relent on pricing and promotions in areas where AT&T Fiber already provides competitive service.

The cable industry has enjoyed a strong speed advantage over most phone companies for the last few years as nearly 100% of cable operators now offer gigabit download speed. In contrast, phone companies are offering gigabit speed in only about 25% of their footprint, with many telco service areas still stuck with low-speed DSL, often unable to achieve the FCC’s minimum broadband speed of 25 Mbps.

Kagan: Cable Company Wireless Is Designed to Trap You in a Bundle, Not Compete in Wireless Business

Comcast and Charter Communications have no real interest in competing head-to-head in wireless with AT&T, Verizon, T-Mobile, or Sprint. Instead, the two cable companies hope to trap you in a bundled package of services too inconvenient to cancel.

Jeff Kagan, a longstanding telecommunications analyst specializing in the cable industry, believes Comcast, Charter, and other cable operators entering the wireless business have no intention of being a serious competitor to the country’s four largest mobile companies.

“The goal of XFINITY Mobile [from Comcast] is to offer their customers another service and to create a sticky bundle,” Kagan said. “It’s not to lead the wireless wars. It’s not to increase their market share for traditional reasons. It is simply to create a sticky bundle to stabilize and grow their customer base.”

Kagan

XFINITY Mobile and Spectrum Mobile (from Charter), both require customers to be signed up for their respective internet services. If a customer cancels internet service, they will lose their mobile service. That could prove to be a major hassle for wireless customers, because they will have to properly port out their existing phone number(s) to another provider before dropping broadband.

Kagan believes cable operators will use mobile service to further strengthen their bundle by tying discounts to the number of services each customer takes through the cable company.

“Customers who use one service find it easy to switch away to a competitor,” Kagan said. “However, when they use multiple services and get a discount for the bundle, they become sticky and generally stay put. And the more services a customer uses, the larger the discount, the stickier they get and the less likely they are to wander.”

That is also likely to be true with Altice, which operates Optimum (Cablevision) and SuddenLink and has partnered with Sprint to offer cell service.

Sprint and T-Mobile, which are planning to merge, have repeatedly argued cable operators will be aggressive new players in the mobile business, giving the potentially combined carrier fierce new competitors. But Kagan doubts that will prove true.

“The problem is, the sticky bundle is not a low-cost solution,” Kagan offered. “With that said, the higher cost to the cable television companies is less than that of losing their customer base. So, the cost makes sense as simply a cost of doing business.”

The challenge cable operators face is that none plan to own and operate their own traditional cellular network. Comcast and Charter have partnered with Verizon Wireless to resell access to its 4G LTE network and Altice will rely on Sprint. Leasing access on an ongoing basis is likely to be more expensive that relying on your own network, but beyond offering Wi-Fi calling and experimental access to future 5G-type services in the emerging CBRS band, cable operators will remain almost completely dependent on their wireless provider partners, limiting their effective ability to compete.

Kagan believes the goals of the two industries are different. Wireless operators are trying to monetize their networks through usage, while cable operators are trying to find new services that will keep customers loyal and are willing to ignore monetizing their wireless side businesses to achieve that goal.

Altice Upgrades Altice One Platform: Cloud DVR Viewing On-the-Go, More Streaming Services On-the-Way

Phillip Dampier November 19, 2018 Altice USA, Consumer News, Video No Comments

Altice USA is upgrading the firmware powering its much-promoted Altice One set-top box to introduce new functionality and integrate popular web services into the viewing experience.

Altice One v2.0 is rolling out to about 200,000 customers that have the advanced box. Among the new features:

  • Recorded DVR content stored in the cloud can now be played back anywhere using the Altice One mobile app.
  • YouTube Kids and a variety of streaming services will enhance viewing options beyond YouTube, Netflix, and a few other supported streaming services.
  • More 4K content will be available, including Premier League soccer, available on channel 200.
  • Remote control voice search will be available for the YouTube app.
  • Show restart feature expanding to 20 extra channels, including A&E, History Channel, Lifetime, Viceland, Fox News, Fox Sports 1, FX and National Geographic.

The Altice One box, which carries a higher rental fee than traditional cable set-top boxes, has now been rolled out to about 80% of its Cablevision/Optimum and Suddenlink service areas. But only a minority of subscribers choose the box, and it gets poor reviews from customers because of bugs and other unexpected behavior.

Altice One v2.0 promotional video, courtesy of Altice. (0:30)

Search This Site:

Contributions:

Recent Comments:

  • PMN: I got the same answer from the AT&T "Call Center" agent, and I hung up and didn't escalate. Did you happen escalate to the "Retention" dept? I w...
  • Larry Fostano: BBB and or your Attorney General. I say , lest get a petition going to submit also....
  • Ryan: Just tried this, worked like a charm. Said I was switching to streaming because of the price. Right away they offered $40 for choice for 12 months....
  • EDWIN Dennis: I ordered a liveware antenna and amplifier: they tried to charge me for 3 antennas.. I got that straight at the bank. Now, no response from liveware; ...
  • j lundberg: after forcing the purchase of their phone- i paid taxes and 1st months service in January ,then find out the phone will not be here before Dec. 29 as ...
  • John Michel: How can one stop SPECTRUM from sending filthy, immoral emails to my email address. I went to settings to set up a block on these filthy emails. Does...
  • Catherine Harris: Where can I find COUT TV on Frontier?...
  • Roger: I read about this once. I think it was in the book 1984....
  • Roger: On top of that, you know the cable companies are going to price the individual stations in such a way that ten or fifteen of them will be the same pri...
  • Oddest Artist: Agreed. Nearly all deals from programmers (and broadcasters) require equal distribution and/or carriage of their services. Providers are bound contrac...
  • Doug: Good luck with that. Forcing a cable company to sell channels a-la-carte will need the consent of the content owner (i.e. - Big Media). And the cont...
  • L. Nova: Blame Wall Street and their relentless greed led by people such as Craig Moffett who have hissy fits when companies such as Verizon want to spend the ...

Your Account: