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Charter Communications CEO Mulls Streaming Video To Compete With Netflix

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Charter Communications CEO Mulls Streaming Video To Compete With Netflix
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Charter Communications, Inc. (NASDAQ: CHTR) might launch a streaming video service to compete with Netflix, Inc. (NASDAQ: NFLX), according to a report Wednesday.

"We're certainly exploring that thought," Charter Chief Executive Thomas M. Rutledge told Reuters. "It's certainly something of interest."

But Rutledge, whose company plans to acquire Time Warner Cable Inc. (NYSE: TWC), added that it's "unclear" how streaming video would fit with Charter's existing cable TV services.

Related Link: O'Boyle: Regulators 'Should Block' Charter-Time Warner Cable Merger

The number of Charter's video customers shrank 1 percent in the recent quarter while Netflix paid membership increased more than 17 percent.

Rutledge earlier this month called Charter's new, cloud-based user interface, called Spectrum Guide, "a breakthrough" that may enable a broader array of product offerings.

"It's a open architecture that gives us a tremendous capability depending on which way the television marketplace evolves," Rutledge said in a quarterly conference call with analysts on May 1.

The system can deliver a wide array of services "either that we sell directly or other companies sell directly," according to Rutledge.

Charter said Tuesday it agreed to pay $55 billion to acquire Time Warner Cable in a deal expected to close by the end of 2015.

The combined companies will provide 23.9 million customers with cable, broadband Internet and phone services.

Charter also said it will acquire Bright House Networks, a small cable company it plans to fold into the new combination.

Posted-In: Charter Netflix competitor Charter Time Warner Cable merger Thomas M. RutledgeNews Rumors M&A Tech Best of Benzinga

 

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