Charter’s Tom Rutledge didn’t make the point as forcefully as Time Warner Cable CEO Glenn Britt did this morning. But asked whether he might follow his colleague who vowed to cut underperforming cable channels Rutledge told the UBS Global Media and Communications Conference that “we’re looking at similar kinds of savings.” The current system that requires viewers to pay for channels that they don’t watch “is perfection if you’re a content company.” Yet Rutledge says that Charter is “in the same position” as Time Warner Cable — and other pay TV providers — grappling with rising outlays for programming. It’s “a real issue” that “puts pressure on the business and pressure on more unique kinds of content,” Rutledge says. Beyond that, the Charter chief says he’s eager to bring digital efficiency to a company that’s been “abused” by financial problems. It briefly filed for bankruptcy protection in 2009. Speaking of the quality of his systems, Rutledge says that “in some places its Taj Mahal and in other places it’s not.” Satellite companies have more customers than Charter does in its territories. The CEO hopes to change that by going all digital, and storing program guide and other data in a server instead of set-top boxes. That would save money, and enable Charter to easily update information and software. “When you look at an iPad and watch television on it, it’s [in effect] a set top box and a TV.”


Interesting, the reasons why? I suspect too much of a good thing, therefore costly to manage, some because lack of content at an affordable cost, time and qulified managers is another cause. “my thoughts”
I live in an area where Charter has already been sliding some previously lower-tier “basic” cable channels like MTV, MTV2, VH1, NBC Sports Channel, etc. into higher-cost pay tiers. So, my guess is that they’ll next be threatening to drop the remaining 50-60 basic cable networks (and maybe even some local TV channels) if they don’t lower their retrans fees — yet our “basic-plus” packaging will probably stay the same or likely go up in price!
I’m guessing Charter (and other cable MSOs) senior management have totally bought into the “strip-mining” concept (also for negotiating leverage) and theory of “The Law of Diminishing Returns” (their overall programming menus) as they make this their going-forward business plans! ;-(
All this tough talk by the cable companies would be much more convincing if they were threatening to drop channels that they were investing in. When Comcast threatens to drop MSNBC or whatever G4 is morphing into, then I’ll believe it. This is an attempt to frighten the companies on the fringe to drop carry fees. The muscling hasn’t worked, so now all the companies are going to try this approach. You will notice that for all the talk of a glut the cable companies are lobbying like crazy every time the phrase ala carte gets mentioned.
The realization by Charter that satellite has more subscribers than cable TV does in their franchise territories implies that cable has shown much less concern about subscribers’ interest than competitors, since cable has better technology, but much worse customer service and relations. Managing content availability will only further alienate their base. Subscribers must have their choice.Cable TV has always been able to raise subscriber rates with impunity. For that reason they have adopted a flawed revenue model that has reached the tipping point. Not only is the poverty level a problem, there are over 60% of the Gen Y’s at risk.To quote Pogo, we have met the enemy and he is us. Netflix has more subscribers than Comcast; and satellite has 30% of the market, for a reason. Subscribers are creating a de facto ala carte. Apple changed model in music & Amazon changed retail & publishing model. They are becoming the new competition, and many times more of a concern then satellite.They can replace the remote and also move the set top box to the Cloud.
I’m a contractor for charter. I think they have it all backwards. The kma I work in is so messed up! Charter would rather have techs run new drops, install brand new house boxes, splitters, and fittings on all homes. I have been to homes with newer fittings and splitters that are just fine. we just changed companies on who we get fitting from and charter wants us to change fittings on every job or else we fail a qc. If I goto a house and the transmit power is failing by one DB straight out of the tap they would rather have us put in an expensive 8 way no loss amp in the house box ( that only has 2 outlets to begin with) than to call in a maintenance request
and fix it the first time. Another thing is the so called weather protected grease they have us put on everything. In my 10 years i have experienced grease shoved into the ports on the taps on numerous occasions. Note this is the only cable co that uses this stuff. Which in turn creates more trouble calls. So lets break down the Normal shitty trailer install. First lets start with the jack ass who audited to previous tenants. This guy cuts the underground drop so short to the ground in the ped that I’m forced to run a new underground drop to the power meter usually about 20 ft from the trailer where I have to put my first house box. Then run an underground from the meter to the trailer where I have to put another house box. Not only do I have to use silicone grease on everything but I have to change the perfectly good splitters and fittings because its not the style we use now. So now that this customer already racked up silicone grease charges, 2 housebox charges. A 100 dollar amp,install charge for the tech to do his thing, and a new charge to burry the underground cable that was cut way to short to the ground. Now say this customer is only getting basic cable and internet for 3 months until they move to another trailer. Now after 3 months comes the disco or audit person to cut the drop at the ground again. charter just spent all that money when so much of those charges could have been avoided from the beginning. They wonder why they lose so much money! Lets update your plant and headend in these shitty areas before you worry about the house boxes and grease. I think charter needs someone that actually worked in the field to make these bonehead decisions