Charter: Just 30% of Acquired Customers on Spectrum Pricing Charter Communications says just 30% of customers acquired in its merger with Time Warner Cable and Bright House Networks have been converted over to Spectrum pricing. That means that 70% of customers acquired in the deal have yet to be converted to what in many areas are price hikes upwards of 40% over what they previously paid. The company has previously stated that these customers were "mispriced" and are simply being shoved in the "right direction."

“In June, we finished the rollout of our new pricing, packaging and branding across our national footprint with the last launch of Spectrum in Hawaii,” said Charter CEO Tom Rutledge recently stated on the company's earnings call. “And as of the end of the second quarter, 30% of Time Warner Cable and Bright House Legacy customers were in our new pricing and packaging, up from 17% at the end of last quarter,” Rutledge added. “In areas where we've had Spectrum in place for at least three quarters, 43% of our residential customers have Spectrum package products.” Rutledge, who was the highest paid executive in the country last year at $98 million, downplayed the ongoing backlash among customers to the price hikes, slower speeds, and messy customer service transition. “Progression of product and package migration is virtually identical to what we saw at Legacy Charter,” he said. “More of our customers are getting better products with better and consistent pricing, which will drive the higher customer satisfaction, lower churn, and greater value into our business.” Except "better and consistent pricing" is the exact opposite of what many customers say they're getting. In fact, cities like Lexington, Kentucky have been forced to hold Except "better and consistent pricing" is the exact opposite of what many customers say they're getting. In fact, cities like Lexington, Kentucky have been forced to hold unprecedented public hearings to address the extreme anger bubbling up among many frustrated Charter customers. And Charter's dysfunction was the centerpiece of a recent New Yorker story lamenting how industry consolidation has fueled "inflated costs for poor service."







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Most recommended from 32 comments

Chuck_IV

join:2003-11-18

Connecticut 11 recommendations Chuck_IV Member WHere did the rest of the posts go??? I don't understand why they were removed. They made valid points as to why only 30% have converted.



Anyway...



“Progression of product and package migration is virtually identical to what we saw at Legacy Charter,” he said. “More of our customers are getting better products with better and consistent pricing, which will drive the higher customer satisfaction, lower churn, and greater value into our business.”



Wow, he is shoveling some serious BS here. Isn't their churn getting worse? The "More of our customers are getting better products with better and consistent pricing" part is basically false. It may be better for the company's bottom line, but not the customer.



While they may offer more channel, the customers not only got an increase on their CURRENT bills, but when you switch to Spectrum pricing, many LOST channels they already had. If they want them back, they are forced into buying a higher priced package, that is an increase ON TOP OF the increase they got on their current bill. As I mentioned in my post that is no longer here, this type of practice isn't relegated to ex TW/BH customers. It also extends to legacy customers too.



I'd have more respect for Rutledge if he just came out and said it like it really is... "We overspent on these mergers and thus we have to make up the cost via raising rates and moving channels for our customers. I also need to keep my title as highest paid executive in the country. so this is what the future of Charter will be", instead of shoveling the BS he is now. JChris

join:2015-11-19

Raleigh, NC 2 recommendations JChris Member That seems like pretty good uptake rate to me. Considering Charter hasn't forced anyone onto Spectrum plans yet that I am aware of, the fact that 30% of acquired customers have voluntarily chosen to transition to Spectrum plans in less than a year sounds pretty decent. At the rate they're going, it should be above 50% by the end of the year.