On November 19, at the Parks Associates ‘Future of Video’ event in Marina del Rey, California, Scott Barton, Vice President of Charter Communications, discussed the company’s innovative approach to bundling streaming services. Charter combines ad-supported tiers of premium subscription video on demand (SVOD) services into its main pay TV packages at no extra cost to consumers, a strategy that has been described as game-changing.

In the third quarter of 2024, Charter experienced a loss of 294,000 cable TV customers, primarily because the company has shifted focus toward high-speed internet and mobile services. However, with the Spectrum Select bundle now including Disney+, Hulu, HBO Max, Paramount+, Peacock, Fox One, ESPN DTC, and several other streaming services, video content has returned to the forefront of Charter’s marketing efforts. The company’s video subscriber base is showing signs of recovery, with only 70,000 pay TV customers lost in the most recent quarter.

During the event, Barton highlighted how Charter is actively promoting its bundle through national TV advertising and has launched the Charter App Store. This online platform allows subscribers to manage their subscriptions more easily. For example, a Spectrum Select customer who wants an ad-free Disney+ can upgrade through the app while paying the same $11.99 monthly fee for Disney+ Basic (With Ads).

Beyond reducing customer churn, Barton revealed that this programming strategy could address a broader industry challenge: improving search and recommendation features across streaming platforms. He explained that, for example, Knicks fans often struggle to find their team’s games, which are spread across multiple networks and streaming services. Because Charter has licensing agreements with all these platforms, it developed a search feature that allows users to simply say, “Where’s my Knicks game?” into their Xumo voice remote. This feature is being promoted with a commercial starring Tracy Morgan.

The issue of inadequate search and recommendation capabilities was a major topic at the conference. A recent report from Gracenote indicates that viewers now spend an average of 14 minutes trying to find something to watch on their smart TVs, and the problem appears to be worsening. Additionally, research from Hub Entertainment Research shows that 80% of 1,600 U.S. respondents sometimes turn to YouTube when they cannot find content on traditional streaming platforms, highlighting a growing dissatisfaction with current search functions.

Charter’s vision for revitalizing pay TV was initially conceived two years ago during a tense carriage dispute with Disney. As more content moved from linear channels to streaming services, Charter negotiated an agreement with Disney to include Disney+ in its bundles at no additional cost. Similar arrangements were later made with other media companies, allowing Charter to package their SVOD services within its offerings.

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