Charter Communications (CHTR Quick QuoteCHTR - Free Report) has partnered with Paramount Global (PARA Quick QuotePARA - Free Report) to announce that Paramount+ Essential, the ad-supported version of PARA’s streaming service, is now included in all Spectrum TV Select and Mi Plan Latino packages nationwide at no extra charge. Under this new multi-year distribution agreement, Spectrum video customers can start streaming a vast library of more than 40,000 episodes of shows and movies.

This integration of Paramount+ Essential adds significant value to Spectrum’s video packages. By offering this content at no additional cost, CHTR aims to enrich the customer viewing experience with premium series and live sports while also opening new distribution channels for Paramount Global. This collaboration represents a pivotal move toward creating a more dynamic and beneficial video ecosystem for both consumers and the industry.

Paramount+ Essential delivers streaming access to CBS’ popular programming, the leading network in America, as well as a variety of content from major entertainment brands including BET, Comedy Central, MTV, Nickelodeon and Paramount Pictures. This partnership not only broadens the range of entertainment available to Spectrum subscribers but also reinforces the strategic goals of both companies in enhancing viewer engagement and satisfaction.

Charter Communications has been actively working to expand its footprint and enhance its platform across the United States, even in the face of challenges like cord-cutting. 

The company remains committed to growing its presence and customer base through ongoing investments and strategic initiatives. For fiscal 2024, the Zacks Consensus Estimate projects Charter Communications’ revenues to reach $54.77 billion, indicating an increase of 0.3% from the previous year. 

Currently, Spectrum serves more than 32 million customers across 41 states. Recent expansions have extended Spectrum’s coverage to new regions, including North Carolina, Tennessee, Michigan, Alabama and Florida.

Additionally, Charter Communications has a strong partner base that includes the likes of Magnite (MGNI Quick QuoteMGNI - Free Report) and Disney (DIS Quick QuoteDIS - Free Report) , besides the recent collaboration with Paramount Global. This strong partner base is expected to aid the company’s long-term prospects.

Charter Communications has broadened its partnership with Magnite to improve programmatic ad-buying for Spectrum's premium linear and streaming TV offerings. By leveraging Magnite’s technology, Spectrum will enable real-time bidding on individual impressions and streamline management across platforms. Additionally, CHTR has teamed up with Disney’s ESPN to offer ESPN+, which is normally priced at $10.99 per month at no extra charge to Spectrum TV Select Plus subscribers.

Conclusion

Charter Communications’ recent expansion and strong partner base is a major positive. However, shares of this Zacks Rank #3 (Hold) company have plunged 12.4% in the year-to-date period compared with the Zacks Consumer Discretionary sector’s decline of 0.2%. The decline is attributed to persistent video-subscriber attrition, primarily due to cord-cutting. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CHTR’s Spectrum Mobile has expanded 5G coverage nationwide. Second-quarter total residential and SMB mobile lines increased 557K. As of Jun 30, 2024, the company served a total of 8.8 million mobile lines. This bodes well for Charter Communications’ future prospects.

The Zacks Consensus Estimate for CHTR’s third-quarter 2024 earnings per share is pegged at $8.62, which has increased 64 cents in the past 30 days. The consensus mark for 2024 earnings is pegged at $32.52 per share, which has increased $1.5 in the past 30 days.