Charter Defies Cord-Cutting Trend, Sparking Stock Surge with Unexpected Video Subscriber Growth
In a surprising reversal for the beleaguered pay-TV industry, Charter Communications stunned Wall Street on Friday by reporting an unexpected increase in video subscribers during the fourth quarter, sending its stock soaring as much as 12%.
The nation's largest cable operator said it added 44,000 video customers in the period ending December 31, a stark contrast to the loss of 123,000 subscribers it suffered a year earlier. The gain, while modest, marks a rare victory against the relentless cord-cutting trend that has defined the sector for over a decade.
"This is a significant psychological boost for Charter and the broader cable space," said Michael Thorne, a media analyst at Veritas Insights. "It suggests there's still a viable path for the traditional bundle if it's aggressively modernized."
The company's broadband business, while still losing customers, also showed resilience. Charter shed 119,000 internet subscribers, a figure that beat analyst expectations for a loss of 132,000. The subscriber performance helped overshadow mixed financial results: revenue dipped 2% year-over-year to $13.6 billion, slightly missing estimates, while earnings per share of $10.34 exceeded forecasts.
On an earnings call, CEO Chris Winfrey attributed the video growth to a strategic pivot. Following its high-profile standoff with Disney last year, Charter has aggressively integrated popular streaming services—like Disney+, ESPN, HBO Max, and Peacock—into its Spectrum TV Select packages at no additional cost. The company estimates the bundled value for customers now exceeds $117 per month and will reach about $129 later this year.
"Our goal is to have a video product that supports broadband acquisition and retention," Winfrey stated. He characterized the subscriber growth as a "nice side benefit" but emphasized that shareholder focus remains on the core broadband and financial strategy.
The positive news provided much-needed relief for Charter's stock, which has declined roughly 30% over the past year amid concerns over broadband subscriber slippage and debt related to its pending acquisition of Cox Communications. CFO Jessica Fischer sought to address leverage concerns, announcing a revised, more conservative debt target range.
Market Reaction & Analyst Commentary
Shares settled up 9% by midday on heavy volume. The report sparked a wave of analyst reassessments.
"This proves the 'streaming bundle' strategy has teeth," commented Linda Garcia, a portfolio manager at Horizon Funds. "Charter is effectively using content as a loss leader to protect its high-margin broadband base. It's a smart, defensive play."
Other reactions were more skeptical. "Let's not pop the champagne just yet," said David Kressler, a vocal critic of cable debt loads, in a sharply worded post on social platform X. "One quarter of paltry video adds, buried in a sea of broadband losses and massive debt for the Cox deal, does not make a turnaround. This is a dead-cat bounce in a declining industry."
Sarah Chen, a consumer telecom specialist, offered a middle-ground view: "The numbers show Charter is finding a floor. Customers are responding to value. But the long-term test is whether this stops the broadband bleed and justifies the increased programming costs. The jury is still out."
The Charter-Cox deal is expected to close in mid-2026.