chesko182 Posted June 5, 2018 Share Posted June 5, 2018 I see now, I completely misread the statement which to be fair was poorly written. ("customers will have access to Apple TV 4K via an all-new Spectrum TV app") I think that if you're already paying for internet the internet service from Spectrum, this might serve to reduce churn. I imagine they get something out of this and it seems like a win-win for both. Link to comment Share on other sites More sharing options...
Munger_Disciple Posted June 5, 2018 Share Posted June 5, 2018 Does anyone know if the Spectrum app on Apple TV would include Cloud DVR option? My guess is yes. Otherwise very few people will subscribe to it. Link to comment Share on other sites More sharing options...
Spekulatius Posted June 5, 2018 Share Posted June 5, 2018 The set top boxes are yesterday’s hardware because generally speaking their user GUI and user friendliness is just crap. Apps in a device of your choice are going to get you a much better user experience. Link to comment Share on other sites More sharing options...
FiveSigma Posted June 5, 2018 Share Posted June 5, 2018 The Apple deal seems more exciting than the (non) reaction of the market to it. If this becomes a secular trend and there is are rational reasons to believe that it will (as Apple is just better at making great consumer electronics than any cableco and it's not their core business anyway, so they shouldn't be in it), then R&D and more importantly a large chunk of CPE capex (which is at ~$2.5B out of ~$7.5B) permanently goes away fundamentally altering the FCF profile of the business. Link to comment Share on other sites More sharing options...
jmp8822 Posted June 5, 2018 Share Posted June 5, 2018 The Apple deal seems more exciting than the (non) reaction of the market to it. If this becomes a secular trend and there is are rational reasons to believe that it will (as Apple is just better at making great consumer electronics than any cableco and it's not their core business anyway, so they shouldn't be in it), then R&D and more importantly a large chunk of CPE capex (which is at ~$2.5B out of ~$7.5B) permanently goes away fundamentally altering the FCF profile of the business. I wouldn't get too excited about the AppleTV deal. I already cut my Spectrum cable subscription and subscribe to YouTube TV, but still have Spectrum internet. It is $40 per month with cloud DVR and all the sports/live channels that I want. In my opinion, the people that would be excited to watch TV on an Apple TV would just cut cable and go to Sling, PS Vue, Hulu Live TV, YouTube TV, etc. Link to comment Share on other sites More sharing options...
cmlber Posted June 5, 2018 Share Posted June 5, 2018 The Apple deal seems more exciting than the (non) reaction of the market to it. If this becomes a secular trend and there is are rational reasons to believe that it will (as Apple is just better at making great consumer electronics than any cableco and it's not their core business anyway, so they shouldn't be in it), then R&D and more importantly a large chunk of CPE capex (which is at ~$2.5B out of ~$7.5B) permanently goes away fundamentally altering the FCF profile of the business. This trend is well known, nothing surprising at all about the announcement hence the non-reaction. Link to comment Share on other sites More sharing options...
scorpioncapital Posted June 6, 2018 Share Posted June 6, 2018 "Spectrum Mobile is likely to steal customers from all four nationwide carriers, but for Verizon the blow will be cushioned by the payments it gets from Charter each time the cable company moves data across its network. Charter is reportedly paying Verizon $5 per gigabyte." Well my experience with affiliate programs suggests this can often be the better deal with 5g coming. I mean you become a marketing organization, sell your customers 5g without any investment and get say a 50 50 profit share. It really is a better deal. And with cable fibre and putting up antennas on utility poles they get a capex free participation bonus. The thesis that owning the airwaves is the best return may be false. I can see it being true if you're the only one who has it and gets all the customers. But I imagine customers need to be sold hence those with existing customers and relationships have an advantage too. https://www.multichannel.com/needtoknow/need-to-know-cable-is-wired-for-5g Link to comment Share on other sites More sharing options...
FiveSigma Posted June 6, 2018 Share Posted June 6, 2018 It may be a stupid question, but why would Verizon even want to enter in agreement with Charter? Giving Charter, a competitor, quad play it makes their business stickier while also enabling that competitor to steal a portion your wireless customers. What's in it for Verizon? Are they required by law to allow access to their infrastructure via a MVNO for interested third parties? Link to comment Share on other sites More sharing options...
cmlber Posted June 6, 2018 Share Posted June 6, 2018 It may be a stupid question, but why would Verizon even want to enter in agreement with Charter? Giving Charter, a competitor, quad play it makes their business stickier while also enabling that competitor to steal a portion your wireless customers. What's in it for Verizon? Are they required by law to allow access to their infrastructure via a MVNO for interested third parties? A while ago Verizon bought spectrum from Comcast/Charter and this was part of the deal. Link to comment Share on other sites More sharing options...
stevevri Posted June 6, 2018 Share Posted June 6, 2018 One thing to remember with the MVNO operations is the fact that 80% of mobile traffic passes through Comcast or Charter's network via WIFI. These MVNO customers are probably at home or at work using WiFi most of the day. This is traffic that often goes over Comcast or Charter's network. So essentially Comcast or Charter can use the MVNO when people are out of their homes. This has to be more favorable then a straight MVNO operation. Then you have Comcast and Charter's partnership. Link to comment Share on other sites More sharing options...
Liberty Posted June 15, 2018 Share Posted June 15, 2018 John Malone: https://www.wsj.com/articles/media-mogul-john-malone-questions-mergers-of-apples-and-oranges-1529017642 Link to comment Share on other sites More sharing options...
scorpioncapital Posted June 15, 2018 Share Posted June 15, 2018 weird, and yet as someone posted on DISCK thread he just bought 33 million of shares of DISCK, maybe due to undervaluation but if he's saying it won't ever merge...yet it's a head scratcher. Link to comment Share on other sites More sharing options...
gfp Posted June 15, 2018 Share Posted June 15, 2018 Thanks for linking the article Liberty. I had totally missed it in the paper. Though he sold his then-No. 1 cable company Tele-Communications Inc. in 1999 to AT&T, he has made a comeback in recent years, including by orchestrating Charter’s acquisition of Time Warner Cable Inc. in 2016. Had me thinking of LL Cool J's 'Mama Said Knock you Out'.. - "don't call it a comeback! i've been here for years!" John Malone: https://www.wsj.com/articles/media-mogul-john-malone-questions-mergers-of-apples-and-oranges-1529017642 Link to comment Share on other sites More sharing options...
gfp Posted June 15, 2018 Share Posted June 15, 2018 saw this today: The New York State Public Service Commission threatened to revoke its approval of Charter's takeover of Time Warner Cable. The regulator said Charter had failed to meet a condition of the approval requiring certain goals for expanding broadband service availability. Charter has also been hit with a $2 million penalty. Link to comment Share on other sites More sharing options...
Rasputin Posted June 15, 2018 Share Posted June 15, 2018 That accusation and penalty from the NY regulator is part of a joint effort to pressure CHTR to cave to the unions' demand. See link below https://www.stamfordadvocate.com/business/article/Charter-Communications-technicians-strike-reaches-12791517.php Link to comment Share on other sites More sharing options...
oscarazocar Posted June 15, 2018 Share Posted June 15, 2018 John Malone: https://www.wsj.com/articles/media-mogul-john-malone-questions-mergers-of-apples-and-oranges-1529017642 He's saying he doesn't want DISCA to merge with CHTR. He states here, and has stated elsewhere, that he thinks there is logic in merging DISCA with other content companies. Link to comment Share on other sites More sharing options...
Shooter MacGavin Posted June 18, 2018 Share Posted June 18, 2018 “They picked on the wrong union,” Chris Erikson, Local 3’s business manager, said in an interview this week. “We believe working people are entitled to security in their retirement and medical coverage.” I hate unions. Link to comment Share on other sites More sharing options...
wisowis Posted June 22, 2018 Share Posted June 22, 2018 https://sumzero.com/headlines/business_services/409-why-the-us-cable-industry-is-poised-for-recovery Link to comment Share on other sites More sharing options...
vince Posted June 22, 2018 Share Posted June 22, 2018 I would pay a good amount for the full sumzero report if anyone has access Link to comment Share on other sites More sharing options...
Liberty Posted June 22, 2018 Share Posted June 22, 2018 Based on the ANH monthly filling, looks like CHTR is buying back shares at a good clip (1.1% O/S, if ANH is maintaining its ratio) : https://www.sec.gov/Archives/edgar/data/914545/000089924318017558/xslF345X03/doc4.xml Link to comment Share on other sites More sharing options...
scorpioncapital Posted June 22, 2018 Share Posted June 22, 2018 I'm always weary of reports with a view. He buys a big stake after a hit to the price then justifies how it's all good with price targets as high as 500 for chtr. But I think the truth is there is uncertainty and unknowns. Having said that I'm not ready to bail yet but unless I see it back where it was before by 2020 I'm reducing significantly. Link to comment Share on other sites More sharing options...
vince Posted June 22, 2018 Share Posted June 22, 2018 wonder where the cash is coming from to buyback 3 percent in last 2 months Link to comment Share on other sites More sharing options...
Liberty Posted June 22, 2018 Share Posted June 22, 2018 wonder where the cash is coming from to buyback 3 percent in last 2 months Depends how long they keep it up. If they do this all year, then they're raising leverage some, which was what Malone/Maffei called for but Rutledge seemed reluctant to do. EBITDA growth should also absorb part of it. Link to comment Share on other sites More sharing options...
scorpioncapital Posted July 7, 2018 Share Posted July 7, 2018 https://www.livewiremarkets.com/wires/charter-communications-digging-a-moat-to-lay-cable Link to comment Share on other sites More sharing options...
JRM Posted July 7, 2018 Share Posted July 7, 2018 https://www.livewiremarkets.com/wires/charter-communications-digging-a-moat-to-lay-cable Interesting article, but it completely ignores the 5G issue. The more I research the more I think 5G will be a strength rather than a threat to Charter. Even Verizon says that only 25% of the current broadband customer base will be cost effective to convert to fixed wireless. I'm guessing that number is slightly optimistic, probably more like 20%. It will be less costly for Charter to build out fixed wireless, if it wants to, than Verizon, AT&T, or any other wireless carrier. Link to comment Share on other sites More sharing options...
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