The competitive landscape for cable and streaming services reflects a clear consumer preference for subscription video on demand (SVOD) content over traditional cable packages and the cord cutting trend continues.
To address this, cable providers are integrating streaming apps into viewing platforms, offering customisable packages, and even including some free SVOD service. However, US cable operator Charter Communications has taken a fresh approach to bundling by including popular SVOD services in its linear TV offerings, packing in nearly as much streaming content value as its video packages cost.
Maintaining cable’s relevance
During Charter Communications Q4 2024 earnings call, CEO Chris Winfrey asserted that video could once again become a valuable asset. He informed investors of Charter’s plans to enhance SVOD offerings and launch a digital video marketplace on Xumo, a joint venture with Comcast. Charter Spectrum’s video marketplace, led by recent hire Scott Barton (formerly Chief Product Officer at MyBundle), is set to debut later in 2025 and will offer a storefront where customers can purchase individual SVOD services and upgrade their video inclusions.
As it prepares to launch its marketplace, Charter has been actively securing carriage agreements that allow it to bundle ad-supported subscriptions for streaming apps with its Select Signature and Select Plus packages (partnering with Disney, Paramount, NBCUniversal, Warner Bros. Discovery, AMC Networks, etc.) at no charge. The operator has rolled in streaming app subscriptions valued at $70/month – $100/month while both video packages are promotionally priced at approximately $100/month.
SVOD is mutually beneficial
Charter’s latest strategic partnership will allow the incorporation of Disney’s Hulu and ESPN’s new streaming service into its video packages at no additional cost in mid-2025. Negotiations were conducted outside the typical carriage agreement cycle, highlighting the mutual benefits of such collaborations.
Charter aims to make its video offerings relevant by meeting a wide range of content needs, while Disney gains valuable distribution for its streaming properties, which is significant given the seasonal nature of ESPN’s content and the high customer churn typically associated with SVOD services.
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By GlobalDataThese strategic partnerships are proving effective. Comcast attributed Peacock’s five million net subscriber increase in Q1 2025 to its inclusion in Charter’s video package. While Charter still bled video subscribers in Q1 2025, the company managed to cut the flow in half year-over-year – a marked improvement even before its marketplace arrives.
As consumer preferences continue to shift toward personalised and on-demand content, cable and SVOD providers must adapt to remain relevant and competitive. The convergence of customers may prove to be a key advantage for both cable and SVOD providers. Charter’s innovative approach appears to be effectively reducing losses, and with ongoing inclusions, SVOD players clearly recognise the value of partnering with cable providers.
