According to The Wall Street Journal, Charter Communications reported a mixed bag of subscriber results for the fourth quarter. The company lost a significant 119,000 internet customers, which it blamed on competition from fixed wireless and fiber services, plus a stagnant housing market. However, it managed to add 428,000 mobile lines and, surprisingly, 44,000 video customers. For the quarter, revenue fell 2.3% to $13.6 billion, missing analyst estimates, while net income dipped to $1.55 billion from $1.68 billion a year earlier. Despite the internet losses, shares jumped 10% on the news, though the stock is still down 37% over the past year.
The bundle is now a life raft
Here’s the thing: Charter‘s story isn’t about any one service anymore. It’s about the bundle. For years, the “triple play” of internet, TV, and phone was a cash cow. Now, it’s a defensive moat. Losing 119,000 internet subscribers in a single quarter is a huge red flag—it’s their core product. But by packaging mobile (Spectrum Mobile) and a revamped video offering with it, they’re trying to make leaving the ecosystem too much of a hassle. CEO Chris Winfrey basically admitted this, saying video improvements are “having an impact in internet.” They’re using one legacy business (video) to prop up another (internet) while their new business (mobile) grows. It’s a delicate, and frankly, risky balancing act.
Mobile growth has a big asterisk
Now, about that mobile growth. Adding 428,000 lines sounds fantastic. But Winfrey’s comment is telling: they’re adding subs “in an environment with a tremendous amount of flooding the market with subsidies that we didn’t match.” That’s a fancy way of saying their growth is happening despite not offering the cheapest deal. Their advantage? Convenience. It’s one bill. It uses their existing WiFi networks to offload data. But I have to ask: how long can that last? When the market for switchers saturates, and competitors like Verizon and T-Mobile decide to get even more aggressive on price, will “one bill” be enough? Probably not. This feels like a growth phase that will eventually plateau.
The video comeback is the real shocker
Let’s be honest. Gaining video subscribers in 2024 is like finding a unicorn. The fact Charter added 44,000 is the most surprising data point in the whole report. Their strategy—integrating streaming apps directly into their set-top box experience—seems to be working for a certain segment. It’s for people who want streaming but are utterly overwhelmed by the fragmentation. They’d rather have one guide, one remote, and one bill. It’s a niche, but apparently it’s a sticky one. This isn’t a reversal of cord-cutting; it’s an admission that for some, managed video service still has value. But let’s not get carried away. One quarter of growth doesn’t make a trend in an industry that’s been in freefall for a decade.
The big picture problem
So, where does this leave Charter? In a tough spot, honestly. Their revenue still declined. Their core product is under siege from two flanks: wireless companies offering home internet and fiber providers offering better speeds. The housing market won’t be stagnant forever, but when it picks up, will new homeowners automatically choose cable? I doubt it. The 10% stock pop feels like relief that the news wasn’t worse, not a celebration of a new dawn. Charter’s playbook is clear: hold everything together with the bundle, cross-sell like crazy, and pray mobile becomes a massive profit center before internet erodes further. It’s a defensive strategy. And in tech, playing defense rarely wins the game long-term.
