Charter Spectrum Will Survive Covid-19 Pandemic
It has been almost six months since the world began suffering the effects of the Covid-19 pandemic, with many industries bearing the brunt. While experts have predicted an economic recession to rival that of the Great Depression, it is fair to say that certain industries have a fair chance for survival when compared to others.
Of the many industries that are poised to emerge strong even after the pandemic, the telecom, cable and internet industry may just see the least damage from the fallout. Of course, one cannot truly determine the full effects of the pandemic at this point, however, having said that, it’s fair to say that this specific industry will see its fair of ups and downs.
As one of the largest and most well-known cable service providers, Charter Communications should be able to fight off the economic effects of Covid-19 quite well. Although one can expect to see a significant dip in their quarterly revenue, the company should be able to not only retain its position as one of America’s largest cable companies, but should also be able to recover any possible losses in the coming years.
Experts believe that certain verticals of Charter Communications may see a boom, while others may not fare as well. The following is a breakdown of expert predictions:
How Will The Covid-19 Pandemic Impact Spectrum Internet?
Spectrum Internet, has seen a major uptick in the demand for faster internet. This is predominantly because most of the country’s workforce is now working out of their homes and, to facilitate a productive workflow, individuals have begun boosting their internet speed by investing in premium internet packages.
Additionally, with most schools and colleges shut down, students and young adults are using this lockdown period to catch up on their favorite shows via streaming services and to enjoy gaming sessions. Even with the job market going down, experts believe that there’s no reason to suspect that consumers may downgrade their internet speeds.
This is because Spectrum Internet offers a wide range of packages to suit different households and price-points, which should allow it to accommodate the needs of consumers who are on a tight budget.
The downside of the lockdown is that Spectrum Internet may see a decrease in new subscriber growth. This is primarily because of the lack of new households being formed at the moment. As new subscriber growth is a key driver for growth for Charter Communications, one may see damage to the company’s share gains over time.
However, with the increase in speed upgrades, the possible lack of new subscribers should not pose a large problem to Spectrum Internet’s overall financials. The company should be as strong as ever even after the pandemic.
How Will The Spread Of Coronavirus Impact Spectrum TV?
Over recent years, cable companies have seen a significant shift in the way consumers behave, with more people choosing on-demand streaming over regular television. This is a trend that will most likely continue during the pandemic, with consumers cutting the cord rapidly.
While this spells bad news Spectrum TV, it may spell good news for Spectrum Internet, with consumers requiring faster internet to meet their streaming needs.
One of the biggest reasons most consumers are making the switch to streaming content is the lower price point at which such services are offered. While Spectrum offers a range of bundle packages to make their services affordable to consumers from all walks of life, the sheer convenience of watching content on-demand may inspire consumers to finally cut the cord and subscribe to OTT platforms.
The lockdown will also have adverse effects on new subscriptions growth for Spectrum TV, as one will see fewer households being formed (even when lockdown regulations are lifted).
How Will The Pandemic Impact Charter Communications Wireless Services?
Though the company’s foray into the wireless communication space had been a recent one, Spectrum had been enjoying a steady growth rate before the pandemic hit. However, at this point, the company is likely to see a significant decrease in people using its mobile services as most consumers will not experiment with their mobile service providers at this time.
Additionally, even once the spread of the novel Coronavirus is under control, consumers may not want to switch from one mobile service provider to another for fear of a needless disruption.
What works in the company’s favor, however, is the fact that Charter wireless services only made up for 2% of the total revenue of Charter Communications. As a result, though the company will not see major gains on this front, it should not impact its overall functioning too greatly.
Due to its relative infancy within this sector, Charter Communications is likely to experience far greater losses than older brands like Verizon and AT&T.
How Will The Pandemic Impact Charter Communications Performance In The Commercial Market?
Most business services are slated to experience lasting impacts from this pandemic, with many smaller and mid-sized companies shutting down and larger ones revising internal policies and strategies to save money. Most smaller names in the cable service industry will not survive the pandemic, letting established brands enjoy a larger slice of market share.
14% of Charter Communications revenue for Spectrum cable TV programming comes from commercial markets, with approximately 60% being generated by smaller and mid-sized businesses. It’s fair to expect a dent in this revenue, even as the government continues to promise stimulus packages to keep such businesses afloat.
Conclusion – Charter Communications Will Survive This Pandemic!
Even with certain business verticals taking a hit, it’s important to note that the parent company will be able to absorb most of these losses thanks to the uptick in increased internet speeds. As a result of this, many economic analysts believe, Charter Communications won’t just survive the pandemic as a whole, but may also see revenue growth this year. However, only time will tell the true impact of the Covid-19 pandemic.