American cable subscribers, listen up: Charter Communications’ (NASDAQ:CHTR) is promising changes to its cable TV packages — particularly for sports networks.
The cable and broadband company said Monday that it plans to start offering a new, two-tier cable package system that will allow customers to select a cheaper, sports-lite TV option without regional sports channels.
The pivotal move comes as the industry has been contending with more people opting to cut cable in favor of streaming services. That’s weighed heavily on sports channels and has hit regional sports networks, which have which have long provided lucrative fees to leagues and teams, especially hard.
Diamond Sports Group, the owner of the largest regional sports networks portfolio, filed for bankruptcy protection earlier this year. Other networks have been launching direct-to-consumer streaming options that come at price points that won’t upend the longtime lucrative pay-TV model. But they’re often considered expensive for consumers and could turn off potential streaming customers.
Charter, which owns two regional sports networks of its own, is looking to change the formula. Beginning in the third quarter, the company said its Spectrum-branded cable TV business will be relaunched as two new services.
Spectrum Select Plus will include the provider’s full slate of sports programming and regional sports networks, while Spectrum Select Signature will exclude certain sports programming for a reduced rate.
The two options will launch on a market-by-market basis throughout the majority of Charter’s U.S. footprint.
CHTR shares hiked $4.50, or 1.2%, to $377.04.
