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16-Jan-2017 09:19

Charter Communications CEO Thomas Rutledge arrived at Charter after spending years at Cablevision, a company that had already started cracking down on promotions and the customers that depended on them year after year as it fought an ongoing price war with Verizon Fi OS.

Millennials and cord-cutters were offered a half-dozen internet speed tiers at all price ranges, and were usually later targeted with relentless offers to add cable TV to broadband-only packages at cut-rate prices.

In early 2014, Comcast announced its intention to acquire Time Warner Cable, starting a lengthy merger review process and distracting the company as it contemplated getting the deal approved in Washington.

To protect the value of the company, Time Warner Cable quietly began offering aggressive promotions once again to hold onto customers.

Company officials admitted the policy would cost it customers it deemed undesirable, but would assure investors that prices, and earnings would continue to rise well in excess of inflation.

The policy of “rate discipline” was applauded on Wall Street where it was seen as serving the interests of shareholders.The increased churn (customers leaving) rate was forgiven as long as revenue continued to grow.

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