Thrifty Consumers Have Not Affected Charter Communications During the COVID-19 Pandemic
There is no denying that all types of business have been hugely affected by the COVID-19 pandemic. Since March 2020, unreliable incomes and a lack of funds have led to many consumers having to live more frugaly. Families and businesses alike have had to become more mindful of their spending, with nonessential expenses being put on the back burner. Though communication is an essential part of life, a lot of telecommunication companies have seen their entertainment elements suffer negatively since the pandemic first happened.
This has a lot to do with many individuals forgoing their cable packages, viewing it as an avoidable expense. However, Charter Communications is one telecommunication company that has not been impacted in the same way. In fact, Charter Communications has reported minimal cancellations of their very affordable Spectrum high speed internet service even though the first wave of the pandemic caused a notable recession.
Using Spectrum branding, Charter Communications offers a number of telecommunication services. Though many companies have suffered since the pandemic began, Charter Communication has actually experienced somewhat of a boom. Certain areas of the company have seen a decline, such as cable TV services and mobile services for businesses, this is not the case across the board. With increasing customer numbers and more internet packages being sold, Charter Communications remains optimistic about their future sales.
Increased Internet Package Sales for Spectrum
Throughout the United States, a number of jobs started being done remotely during the early stages of the pandemic. This led to cable internet sales increasing for Spectrum as many customers, not knowing how long they would be working from home for, sought out faster speeds to keep up with their workplace demands.
With faster internet, effectively sending and receiving materials throughout the workday is easier. Thanks to the company’s impressive packages, equipped with competitive speed and pricing, Spectrum became an obvious choice for many. Though the future is unclear in light of COVID-19, it’s thought that many Americans will continue to use Spectrum.
Customers Have Ditched Movie Channels and TV Packages
The increased need for a faster internet service is not only linked to more people working from home, but also to more people getting rid of their movie channels and TV packages. With many families having to get rid of non-essential expenses, such as movie channels and TV packages, there has been an increased focus on streaming services. The likes of Netflix, Hulu and Amazon Prime have cheaper monthly subscription fees than movie channels and TV packages, which is why they are favored by those on a budget.
For flawless streaming, a fast internet speed is needed. By opting for a better internet service, individuals benefit from the ability to work from home, stream movies and satisfy the whole family without spending too much. Charter Communications believes that even more families will make the move to streaming services in the coming months to reduce their spending. Although this will lead to more Spectrum movie channels and TV packages being cancelled, it also leads to an increase in high speed internet customers.
Spectrum Gains Internet Customers Thanks to COVID-19
Spectrum has seen long term customers cancel their subscriptions, but also a number of new customers have signed up to the service. This is because of an increasing number of jobs becoming remote and workers needing a more reliable internet speed at home. Though Charter Communications has reported long term customers cancelling their movie and TV packages, this is balanced out by the new customers choosing Spectrum as their broadband internet service provider.
Business Services at Charter Have Been Impacted
As many businesses are shutting down temporarily, with some having to close on a permanent basis, the business services side of telecommunications has suffered more than individual and family packages. This is because many businesses no longer need the service. 14% of revenue for Spectrum TV packages comes from businesses, and many of those services are no longer needed. Charter Communication feels as though the business side of things will continue to decline over the upcoming months, as more and more businesses are affected by COVID-19.
Mobile Services Likely to Increase Sometime Soon
Those on a limited budget can benefit from Charter Communications’ cheaper mobile services, which is one way that the company has managed to entice new customers. Though there are competitors out there, such as AT&T and Verizon Wireless, a lot of customers continue to choose Charter Spectrum. The bells and whistles of competitor companies fail to sway them, which leads to many opting for cheaper alternatives. In the coming months, Charter Communications feels as though families and individuals will need to reduce their spending even more and will opt for more affordable mobile phone plans.
What Does The Future Look Like For Charter Communications?
There is no denying that life as everyone knows it has changed, especially for businesses that are not restricted by what they can and cannot do. There will always be struggles for businesses in the United States, regardless of the economic circumstances, but the country’s ability to overcome these struggles is impressive. Despite being in a pandemic, Charter Communications continues to thrive and overcome its tribulations whilst meeting the needs of customers.
With a decline in cable TV subscriptions and an increased demand for better internet packages and streaming services, Charter Communications has seen an opportunity to focus on remote workers and their families. The company recognizes its potential to prosper in the coming months, thanks to competitive mobile offers and impressive internet speeds. It’s safe to say that Charter Communications (Spectrum) may become the ‘go to’ for essential services in the United States. People will always want entertainment and internet connections, but they want to get them on a budget. Luckily, Charter Communications can service a huge number of consumers in the United States in a very affordable way.
Charter Communications stock price has steadily been going up since the end of March 2020. The future truly looks bright for Charter Communications.