Charter CEO Chris Winfrey said the company’s recent Disney carriage fight cost the company 320,000 video customers in the third quarter, but the resulting deal represents “a significant step forward for the video ecosystem.” Speaking during the company’s third-quarter earnings call, Winfrey said the agreement showcased “a new hybrid distribution model is good for consumers.” The companies agreed to terms after a 10-day blackout that kept ESPN, ABC stations and other networks off Spectrum systems just as college football season was starting. The new pact “better aligns video content and DTC apps, which will be included for free in our video packages. … We created a glide path to bridge from linear video to new growth.”
Charter still values being able to sell traditional video packages alongside its broadband products but CFO Chris Winfrey suggested that a breaking point is coming. Speaking at an Evercore investor event, Winfrey reaffirmed that video is still an in-demand product and that it’s still profitable for Charter. But he warned changes are needed to ensure that his company can continue assembling attractive products that can be packaged for different customers with different budgets.
