& cplSiteName &

Charter Sets All-Digital Path for Video

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
11/6/2012
50%
50%

As Charter Communications Inc. continues to execute the Cablevision Systems Corp. (NYSE: CVC) playbook under new President and CEO Tom Rutledge, an all-digital video migration appears to be near the top of the operator's agenda. (See Can Charter Repeat the Video Feat? and Ex-Cablevision COO Becomes Charter CEO.)

"We intend to progressively move to an all-digital platform over the next two years, starting with seeding the market with boxes today," Rutledge said on the company's third-quarter earnings call Tuesday. That migration will put Charter on the way to reclaiming precious bandwidth "and eventually switching off inferior analog product altogether."

The early phase of this set-top seeding process caused Charter's capex to spike to $488 million in the quarter, versus the $412 million expected by analysts. Rutledge hopes those costs will go down as baseline set-top functionality goes inside tablets, TVs and other connected devices.

Part of Rutledge's thinking while at Cablevision was that he could keep set-top costs down by using a network-based DVR rather than relying on more expensive set-tops with local DVRs. But that's a longer-term play at Charter. "I wouldn't say that we have an immediate capability at Charter to go to network DVR or other cloud-based services like it," Rutledge said. (See Charter Keeps RS-DVR on Sidelines.)

Rutledge did not say precisely how Charter will seed the market with boxes ahead of the switchover. Comcast Corp. (Nasdaq: CMCSA, CMCSK), for example, has deployed millions of low-cost Digital Terminal Adapter (DTA) devices to power its analog reclamation strategy. (See Comcast's $1B Bandwidth Plan .)

Charter, however, hinted in a waiver request filed with the Federal Communications Commission (FCC) late last week that it intends to use the sort of software-based security system that Cablevision -- Rutledge's former company -- put into play for its all-digital strategy. While at Cablevision, Rutledge envisioned that boxes based on that system could eventually be had for about $50 each. So far, Samsung Corp. is the only box maker that Cablevision has deployed with the new security system. (See Charter Video Plan Good News for Cisco, Samsung and Cablevision Eyes $50 Set-Top.)

"We have a strategy of buying CPE from world-class vendors and trying to get ... in a position where we can buy CPE from multiple providers and therefore get competitive pricing," Rutledge said.

Going all-digital is just one component of a larger strategy Rutledge is using to change Charter's operational model, with the hope of generating a higher rate of cash flow per home passed. That strategy also includes the centralizing of Charter's network operations, and simplifying the pricing and packaging of its video and broadband products.

Financial update
Charter's strategy is the early phases and the results haven't shown up yet in earnings.

Charter posted a third quarter loss of $87 million (87 cents per share) on revenues of $1.88 billion, up 3.9 percent. Analysts were expecting a loss of 44 cents per share and revenues of $1.84 billion.

Charter also lost 73,000 video subscribers, of which 56,000 were basic TV customers. The MSO gained 69,000 cable modem customers and 52,000 voice subs.

— Jeff Baumgartner, Site Editor, Light Reading Cable

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (0) comments


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (2) comments


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (2) comments


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Is Cable One Beefing Up for Slaughter?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/20/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
TV's Paradox: No HDR Without 4K
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Qualcomm Study Predicts 5G Will Create 22M Jobs by 2035
Dan Jones, Mobile Editor, 1/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.