Charter Communications CEO Chris Winfrey aims to improve the company’s reputation for reliability and credibility among customers. In an effort to achieve this, Charter, known as Spectrum to customers, announced changes including new bundles and pricing, faster internet speeds, service outage credits, and a commitment to enhanced reliability. The company is also working to change the negative perceptions often associated with cable companies by introducing Spectrum’s new “Life Unlimited” customer commitment platform.
Under Winfrey’s leadership since December 2022, Charter announced significant changes to pricing and packaging to create more value for customers. Spectrum is offering internet plans starting at $30 a month for 500Mbps service, or $40 a month for 1GB service when bundled with two mobile lines or cable TV. The company is also increasing the baseline internet speeds for existing customers at no extra cost, providing upfront pricing with no annual contracts, guaranteed pricing for up to three years, and eliminating previous additional charges.
In response to customer service issues, Spectrum is offering credits for inadequate service, such as internet outages lasting more than two hours due to company issues, excluding weather or natural disaster-related incidents. The company’s “Life Unlimited” platform, covering internet, mobile, and TV services, will be rolled out across its 41-state footprint. Winfrey emphasized the commitment to continuous improvement, acknowledging that they are not perfect but are striving to deliver better service every month and year.
While Charter’s stock price has fluctuated in recent years due to various industry challenges, including a slowdown in broadband subscriber growth, the company has shown resilience through its mobile business growth. Spectrum Mobile, launched in 2018, has gained 8.8 million total lines by offering competitive promotions and leveraging reliable Wi-Fi networks. Winfrey believes that focusing on providing value to customers, saving them money, and delivering excellent customer service will ultimately benefit the company’s capital market strategy and regulatory efforts.
Charter is actively working to retain pay TV customers despite the industry-wide trend of cord-cutting. Winfrey was vocal about the broken pay TV ecosystem and played a key role in negotiating a deal with Disney that included ad-supported streaming services in Charter’s TV packages. The agreement with Disney, allowing the inclusion of Disney+ and ESPN+ in Spectrum TV Select packages, exemplifies Charter’s efforts to adapt to the changing media landscape by combining traditional pay TV with streaming options.
Charter’s recent deals with Warner Bros. Discovery, AMC Networks, and other content providers have allowed the company to offer a wide range of streaming services to customers, including a revenue share agreement. The company’s Xumo streaming device provides consumers with access to both cable TV and streaming apps in one place, eliminating the need for a traditional cable box. Charter continues to negotiate with major programmers to expand its offering of ad-supported streaming apps, aiming to provide a comprehensive entertainment experience to its customers.
