Charter Communications CEO Tom Rutledge said cable operators should embrace OTT video services because they highlight the value of their broadband offerings.
“Netflix is our friend, they drive broadband,” Rutledge said at the Goldman Sachs Communacopia conference in New York Wednesday. “We embrace OTT television because it makes our broadband superiority more clear in the eyes of consumers.” Rutledge said he expects to grow video customers this year, despite added competitive pressures. Rutledge added he believes the additional pressure from OTT video is more driven by income and security issues. Lack of income has always been an issue in cable, and can be addressed in part by more innovative video packaging. Security, or customers letting their kids or friends use their authentication passwords to essentially get free content, is another drag on the business. Rutledge wouldn’t say if Charter would crack down on password sharing, but he said that it is becoming a growing problem.
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