Scrolling through headlines and current events, an article positioning video as a strategic edge certainly caught my eye. Clicking into the article, I was even more surprised to see the comments coming an executive at the third largest cable operator in the US, Altice USA. Nate Edwards, EVP of Network Services and Business Transformation at Altice spoke with Fierce-Nation.com* highlighting the strategic edge cable operators had in the market due to their video offering.
So, let’s set the stage, Altice has experienced over 650,000 video subscriber losses in the last 8 quarters (back to 3Q 2022), with nearly 250,000 of those losses coming in 2024. Similar to other major cable operators has experienced significant internet subscriber losses, to the tune of over 330,000 with nearly half of those losses occurring in the first 3 quarters of this year. So what is Mr. Edwards seeing that is informing this outlook? Wireless.
Altice has added nearly 250,000 mobile lines since 3Q 2022 with almost 100,000 adds occurring in 2024. Converged offers of discounted Mobile and Internet plans have taken the market by storm as several major ISPs more aggressively market these deals and savings. Video can be fit into this equation, but in a round-a-bout way. As competition for internet subscribers continues to be stiff, ISPs are looking for every edge when it comes to customer offers. Video offerings in it’s current form is likely not the solution for growth. However, a converged offer of Mobile, Internet, and Video with a couple of streaming subscriptions included may be exactly what the everyday consumer is looking for.
Video alone isn’t going to make a comeback, but as Mr. Edwards suggests, for the consumer seeking a competitive Mobile + Internet + Video offer, cable operators are at an advantage. This advantage may spur some subscriber growth, but this growth may be stunted as more live sports turn to streaming services to air their products. As Comcast has repeatedly mentioned with the growth of their Peacock platform, streaming Live Sports is a significant difference maker in the success and outlook for streaming services.
*Checkout the full Fierce-Nation.com article, Altice USA exec thinks video is the edge cable needs, by clicking here.