As executive VP of digital platforms at Charter Communications, Jodi Robinson is the go-to digital chieftain at the cable company, leading its video product management, customer self-service platforms, internal design agency and its data platforms organization. 

A graduate of Stanford University, Robinson joined Charter in 2014 as senior VP. She has led its digital platforms organization since 2019 and its user experience design and development organization since joining the company. Prior to Charter, Robinson was VP of Internet & Interactive Technology at Starz, where she played a big role in developing TV Everywhere apps and digital products for the programmer and was responsible for all online, digital and consumer-facing technology and video solutions. Before joining Starz, she held a number of roles of software development and architecture roles at Level 3 Communications and Sun Microsystems. In short, she knows her stuff.

Robinson took the time out recently to answer a few questions about Charter’s digital strategy and its Spectrum TV App from Multichannel News senior content producer – finance, Mike Farrell. Here’s an edited transcript. 

MCN: Obviously, consumers are accessing video and other services differently today than even just a few years ago. What is Charter doing to make that experience better?

Jodi Robinson: The video business is changing and we are innovating accordingly, reaching our customers wherever and whenever they want. We are largely able to accomplish this through the growth and expanded capabilities of the Spectrum TV App. It is robust and heavily used by our customers, making it the most-viewed streaming app in the country on an hours-per-household basis. It’s also currently the highest-rated pay TV streaming app in the US; we’re quite proud of the strides we’ve made to better serve our customers on this front.

While the app is growing and performing well, we also continue to enhance the traditional video experience. Spectrum Guide is now offered to virtually all new customers across our footprint. Within Spectrum Guide, and keeping with our theme of choice, we now offer Netflix, HBO Max and YouTube, and have plans to add more apps in the near future.

Another way we are enabling customer choice is through the Spectrum Access app, which we launched last year. It is a free app, available to all users in the U.S. that enables playback of audio description and closed captioning directly from a user’s personal device. This product is unique to Charter and exemplifies our commitment to creating products that work for all customers.

We also launched the Spectrum News App last year, which provides local news feeds from all the Spectrum News networks, original content produced specifically for the app, and curated content from partner news organizations.

MCN: What do you see as the most important aspect of your digital strategy? What’s the most difficult part of that?

JR: In order to succeed, we need to continuously adapt to meet the expectations of our customers, be as accessible as possible and stay ahead of trends in the industry. This means we must stay nimble and be prepared at all times to meet the needs of our customers. A big part of that strategy today is in the way we are delivering connectivity — as a converged and integrated service that includes mobile and broadband. Delivering ubiquitous connectivity allows our customers to work and learn on the go while also maintaining access to entertainment services like the Spectrum TV App. As customers expect more digital access, Spectrum will always be there to ensure consistent and reliable access is available — no matter the task.

MCN: You have the Spectrum app, Comcast has the Xfinity app, other distributors have their own app. What makes your app different? Or is it?

JR: High-quality streaming is our north star and our investment in performance is what sets us apart. The app works really well and that’s a testament to the way we operate the platform as well as the way we invest in innovation — continually raising the bar by bringing new features to the platform, while ensuring we do not risk the overall quality of performance.

MCN: Are more customers accessing service via the Spectrum app today than ever? Any estimates as to how many? How many do you think it will be in the next few years? 

JR: The Spectrum TV App is definitely more popular than ever. As of the end of Q3, we’re seeing more than 11 million active customer devices accessing the service every month and are pleased to report that the Spectrum TV App is the most-viewed streaming app in the country on an hours-per household basis. The adoption of the platform has been accelerating and we expect that trend to continue.

Also: Roku Yanks Charter Spectrum App in Carriage Dispute Switcheroo

MCN: It’s not just video that customers are accessing through the Spectrum app, but also customer service and account management. Is that the future? Are you gearing up for the day when most of your customer interaction is through apps? Is this making those operations more efficient?

JR: Yes, we are seeing operational efficiencies and satisfaction gains from customers who choose to engage digitally. Call centers and field technicians will always be central to how we serve our customers, but we are seeing a natural movement to digital engagement, including increased use of chat, the My Spectrum app and our website. All indications are this trend will continue to grow organically — and rapidly.

Charter’s approach is to serve our customers where they want, when they want, and how they want. Our customer service, field and network operations teams all work to provide options for our customers that make it easier for them to interact with us. Digital applications are a growing part of that strategy and investments in the My Spectrum app and Spectrum websites enable our customers to engage in new ways.

Our efforts in this space are part of a much bigger strategy to improve the customer experience. We have made network enhancements to reduce service disruptions, streamlined installation processes with most services now being self-installed, proactively communicated with customers through text and email to keep them aware of their services and account changes, and given customers the ability to track their techs in real-time for appointments.

We’re proud of the engagement and growth within our digital channels, but we are most proud of the way in which we have turned service into a personalized product for all customers.

MCN: Do you see a day soon when the Spectrum TV app replaces the need for a set-top at all? Is this going to take a few years as people switch out their home TV sets for smart TVs, or do you expect it to happen sooner?

JR: We continue to see a demand for the traditional video experience on a set-top box, especially as we add capabilities to the Spectrum TV experience like the introduction of streaming apps incorporated into that platform. We launched HBO Max and YouTube this year in addition to Netflix which has already been deployed to our traditional platform. That being said, traditional customers are relying more heavily on the Spectrum TV App within their house and while on the go using mobile devices. We like the fact that Spectrum customers get to choose which platform works best for their lifestyle.

MCN: The Spectrum TV app is available on Apple TV, Chromecast, Xbox One, Samsung Smart TVs and now Roku. What deals are left to do?

JR: Don’t forget mobile! The Spectrum TV App has a loyal following of Android and iOS mobile customers watching the game or catching up on their favorite series while on the go. We also support Chromecast and AirPlay streaming from mobile to connected-TV devices.

To answer the question, though, we’re always working to get the Spectrum TV App on the platforms our customers find the most value in. We have an open dialogue with most streaming device manufacturers and look forward to supporting additional devices in the near future.

MCN: Is this where you see the business going? If consumers don’t have a smart TV, they probably have an Apple TV device or something similar. Is the day coming when Roku Channels or Amazon Channels will be the primary sales vehicle for video, or do you see this as primarily a complement?

JR: It’s too early to make that type of prediction. As content continues to fragment into a variety of services, the role of the aggregator remains a moving target. I’d argue that the streaming services available today have made it more complicated for the average video subscriber to understand where to find the content they want. Users spend a lot of time browsing and searching — it might even be more accurate to say customers have to research where to find their shows and what it will cost them to watch. From monthly streaming subscriptions to free ad-supported content and now ad-free tiers, live and on-demand content with different access rules and the persistent confusion of ‘which app is the game on tonight’ questions, it’s a jungle out there. Our goal for the Spectrum TV experience, both within the traditional set top box and via the Spectrum TV App, is to enable seamless, aggregated access to high-quality video content.

I think we’ve done a good job reducing the noise for customers so they can maximize their time enjoying their video subscription.

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MCN: You did a Roku deal recently, after not being on that service for about 10 months. How important are outlets like Roku and Amazon to the overall mix?

JR: When it comes to our video products, we think enabling access through streaming devices is an important value-add to our growing customer segment. Enabling the Spectrum TV App on devices like Roku is something we will continue to do, so long as the technology requirements and platform agreement terms make sense for our business.

MCN: With every programmer having its own app, and many doing their own direct-to-consumer offerings, how close are we to the day where cable operators no longer offer traditional programming packages or authenticated streaming options, but just access to apps? Is that the next evolutionary step for the video space — broadcast begat cable which begat satellite which begat on demand which begat streaming, etc., etc. Is the ultimate goal to have cable apps like the Spectrum TV App be the vehicle where consumers can buy broadband service and packages of programming apps based on genres from the cable company, or even individually for a slight premium?

JR: It’s difficult to predict what is going to happen. One thing we all agree on is that there is more demand for high-quality video content than ever before. That demand is driving new consumption and behavior patterns for customers who want more control over their subscriptions, from the channels included in their packages to the way they sign up for service.

Charter is responding in the form of more flexible packaging including lower-priced video offerings like Choice, Stream and Essentials, all of which are available without a set-top box and through online digital purchase.

More broadly, though, I think we’ve got a long way to go before we’ve arrived at the ideal customer experience for purchasing and consuming streaming video. It seems clear that aggregation solutions and bundled pricing options will evolve, enabling more customer choice, forcing technology solutions that simplify the customer experience, and further increasing demand. ■

Charter Communications has announced native deployment of HBO Max and YouTube on its cloud-based video operating system, Spectrum Guide. 

The two services join Netflix as the only apps available on Charter's Spectrum Guide platform. Charter said that the two added video platforms would work on "eligible devices." 

Like Netflix, which was deployed on Spectrum Guide back in 2018, HBO Max will only be available on newer model Worldbox 2.0 set-tops, which a Charter rep told us, "make up a majority of our deployed Worldboxes."

The YouTube app will play on all Worldbox set-tops. 

Notably, Spectrum Guide was developed a decade ago as a means of keeping older set-tops viable--the system relies on processing of video images and audio in the cloud. It appears that for streaming apps, however, a certain level of computer processing performacne is required in the client device. 

“As the video landscape continues to change, we are evolving our products and making it easier for our customers to watch what they want by providing access to streaming apps from convenient launch points within the Spectrum TV experience,” said Elena Ritchie, group VP of video experience for Charter. “We look forward to growing this library and expect to launch more streaming video apps in the coming months.”

Spectrum Guide customers with the right customer premises equipment can tune directly into channel 2003 for YouTube or 2004 for HBO Max, or they can click on the appropriate logos in the app menus. 

Charter is the second biggest pay TV operator in the U.S., with just over 16 million subscribers. It only trails Comcast, which natively integrated HBO Max into its Xfinity X1 and Xfinity Flex platforms last December. 

Video technology vendor ActiveVideo has announced that Cable Bahamas will deploy its cloud-based, virtualized pay TV delivery system.

San Jose, California-based ActiveVideo is jointly owned by CommScope and Charter Communications. The latter uses the company’s CloudTV platform as the foundation of its Spectrum Guide video service, which virtualizes set-top processing and functions in the cloud, allowing operators to deliver next-generation TV experiences even to older set-tops.

ActiveVideo’s solution leverages Zodiac Systems’ software, including the Zodiac Stack set-top box software and Zodiac Matrix cloud integration platform, and is integrated with Minerva’s service management platform and client presentation engine. The end-to-end solution is branded REVGOPlay by Cable Bahamas.

“Our collaboration with ActiveVideo allows us to deliver world-class services across the Bahamas, by maximizing our existing capex and rapidly migrating our entire subscriber base to an advanced UI without needing to ship a new device to each and every home,” said John Gomez, COO of Cable Bahamas. "The flexibility of our virtualized platform will support agile and cost-effective growth as we introduce new services and devices.”

At the IBC Show in Amsterdam in September, ActiveVideo said that 18 million pay TV customers were using its cloud-based technology.

At that time, Charter issued a statement, seemingly aimed at reminding everyone that it’s still using ActiveVideo tech.

“Spectrum Guide has been deployed to millions of set-top boxes across our footprint providing a reliable, modern navigation experience, and virtualization has been key to that success,” said Jake Perlman, senior VP of software development at Charter. “Working with ActiveVideo allowed us to realize the promises of virtualization, deploy a world-class, next-generation TV service at scale and have a flexible platform that supports new features and services.”

However, Charter executives have conceded that they’re looking at Comcast’s X1 and are considering a white-label license of the video technology, similar to the one used by Cox Communications. 

ActiveVideo Networks, the technology company behind Charter’s Spectrum Guide cloud-based video delivery system, is expanding its act for pay TV operators who want to enable their customers to use Android-based OTT apps.

The San Jose, California-based tech company, jointly purchased in 2015 by Charter and Arris for $135 million, has announced the launch of AppCloud, a new cloud based video delivery system that allows users to tap into OTT apps based on Android APK, no matter how much in the way of computing resources their set-top has.

In Europe and, increasingly in the U.S., pay TV operators have been sating the subscribers’ desire for OTT apps by deploying thin-client, Android TV-based hybrid QAM/IP set-tops, which allow operators to deliver managed network services while simultaneously allowing the customer to tap into any OTT app found in the Google Play store.

Debuting at the IBC Show in Amsterdam this week, ActiveVideo’s AppCloud takes the concept one step further — now, the operator doesn't even have to replace the legacy set-tops.

ActiveVideo’s technology is based on having all app processing done in the cloud — what appears on the user’s TV is actually MPEG video virtualization fo the user interface generated in the cloud … and not the actual user interface.

“There are thousands of Android-based TV apps available today, and with ActiveVideo AppCloud, we bring an immediate breadth of TV apps to the operator,” said Jeff Miller, ActiveVideo CEO, in a statement. “Service providers can...maintain direct relationships with their subscribers, expand the services they offer, and drive new digital advertising approaches with the ActiveVideo AppCloud framework.

Notably, Charter has been in the market with Spectrum Guide since 2014. The cable operator put out a press release Thursday reminding everyone that ActiveVideo’s technology is already available in “millions” of its subscribers' homes. (In its IBC press release, ActiveVideo noted that it is already “delivering virtualized content in 18 million set-top devices.)

“Spectrum Guide has been deployed to millions of set-top boxes across our footprint providing a reliable, modern navigation experience, and virtualization has been key to that success,” said Jake Perlman, senior VP of software development at Charter. “Working with ActiveVideo allowed us to realize the promises of virtualization, deploy a world-class, next-generation TV service at scale and have a flexible platform that supports new features and services.”

Perhaps the most surprising comment during an active week of first-quarter earnings reports came from Charter Communications Chairman and CEO Tom Rutledge, who revealed that his cable company has had discussions—seemingly recent—about licensing X1 from Comcast.

“We've had discussions with [Comcast] about licensing their X1 platform and their new IP video platform," Rutledge said during Charter’s Q1 earnings call, responding to the very last investment analyst question. "And if we can make that the best platform for us, we'd certainly be willing to do that, and we think they'd be a great provider."

Related: Charter’s Rutledge: 'We’ve Had Discussions' With Comcast About Licensing X1

Comcast, of course, licenses its X1 advanced video delivery platform to the No. 3 cable company in the U.S., Cox Communications, as well as all three major cable operators in Canada, Rogers Communications, Shaw Communications and Videotron.

But Charter is years and hundreds of millions of dollars down the line, developing and deploying its own Spectrum Guide cloud-based video system. This initiative not only includes the $135 million joint purchase of the key technology vendor for that platform’s UI, ActiveVideo, but also development of the WorldBox QAM/IP hybrid set-top platform, jointly cooked with Cisco.

So recent were these talks?

Rutledge’s mention of an “IP video platform” seems to be a reference to Comcast’s just announced Xfinity Flex service, which provides some indicator.

Speaking to numerous unnamed sources, Light Reading reported that members of Charter’s video team had visited Comcast’s home town of Philadelphia within the last several weeks.

Would Charter actually consider switching to X1 syndication?

According to Light Reading, these talks between Comcast and Charter have gone on for years.

It doesn’t appear as though X1 has a marked churn-reducing advantage over Spectrum Guide, with Comcast shedding 371,000 video customers in 2018 vs. Charter’s 244,000.

And Rutledge seemed to stop the speculation right where it started, noting, “We like having our own UI, and we like having the ability to change that UI at the pace we want to change it and have it reflect our marketing strategy.

“If we could check all the boxes in terms of flexibility and low cost, we could be a vendor of Comcast and their platform,” he added. “But to date, we haven’t been able to do that.”

Charter Communications president and CEO Tom Rutledge alluded that wireless will be part of the MSO’s game plan going forward, but stopped short of saying whether that strategy will ultimately include an MVNO component.

Charter expanded into the metro WiFi game by inheriting the networks deployed by Time Warner Cable and Bright House Networks, while also getting access to an MVNO deal with Verizon that was factored into TWC’s and BHN’s sale of wireless spectrum sale to the mobile carrier.

“We have not fully exercised that right yet,” Rutledge said of the MVNO agreement. “We’re looking at what those rights are and how we’ll execute for how we’ll utilize them for the best interest of the company. But we don’t have a plan yet that we’re ready to roll out.”

Earlier in the call Rutledge noted that Charter’s WiFi network combined with “MVNO opportunities” and other wireless building blocks “Should allow us to create products and services with high value proposition…Over time, we'll have more to discuss on this subject.”

Comcast has already invoked its MVNO agreement with Verizon (Comcast also has one with Sprint), but has not yet launched a mobile service under its own brand. However, Comcast has created a new mobile division that is being led by Greg Butz.

Rutledge also offered an update on Charter’s plan to use two-way, VOD-capable set-tops to fuel the completion of all-digital rollouts at the TWC and BHN properties, and to extend its new cloud-powered Spectrum Guide to those markets.

Charter has wrapped up all-digital upgrades in its legacy areas, and expects to get them rolling in TWC and BHN markets. Rutledge estimated that 40% of TWC’s assets are not all-digital, and about half of BHN’s properties have not yet gone all-digital, and that the upgrades should be completed by 2018.

As for Spectrum Guide, which can be offered on Charter’s full suite of set-top boxes, the MSO expects to have it rolled out to most legacy Charter markets by the end of 2017. It will follow with rollouts in TWC’s larger markets by mid-2017, and hit other TWC and BHN areas throughout the year and through 2018 as the all-digital project is completed.

Charter, Rutledge said, has also begun an “insourcing” effort for the newly combined company, noting that the process will take “several years” and require the hiring and training of 20,000 people.

As an example of progress, Rutledge said Charter has built its first Spanish-language call center in Texas, which will house approximately 600 seats.

“Ultimately, with a more local workforce, we'll perform higher-quality transactions with customers , which we expect will improve customer satisfaction,” Rutledge said.

Charter Communications has expanded the rollout of Spectrum Guide, its cloud-based user interface that relies on ActiveVideo technology to deliver it to older QAM-locked set-tops as well as its newer IP-capable devices.

Charter said it has introduced Spectrum Guide to video subs in Fort Worth, Texas; Reno, Nev.; and St. Louis, Mo., and that it will soon start to launch its new World Box, a platform that will support the new UI, an array of apps, and feature a downloadable security platform. Technicolor, which acquired Cisco Systems’ CPE business in November 2015, and Humax are the known suppliers of the World Box.

Speaking Thursday on Charter’s Q1 call, company CEO Tom Rutledge said the MSO expects to have the UI rolled out to most legacy Charter markets by the end of 2016.

“It continues to scale well, and is resonating with consumers,” he said.

He said managing the all-digital transition of the acquired systems will be a “key priority,” hopeful that Charter can complete the process across all 36 million homes passed by TWC and Bright House by the end of 2018. Charter is still working on the rollout plan of Spectrum Guide in the acquired systems, Rutledge said.

Early into the all-digital process after the deals close, Charter will “briefly pause” new digital rollouts in the legacy and newly acquired systems, and then restart the effort by deploying two-way set-tops everywhere, and discontinuing the deployment of one-way Digital Transport Adapters (DTAs), Rutledge said.

TWC has been using DTAs, which don’t inherently support two-way services like VOD, to help fuel its all-digital initiative. Charter will remove DTAs from the market “in a natural way” as new customers sign up for service and existing ones upgrade, Rutledge said. “We’re not going to force them out.”

On the call, Charter was also asked to discuss the advantage of the ActiveVideo joint venture with Arris (the J.V. acquired ActiveVideo in mid-2015, with Arris nabbing a 65% stake).

Charter EVP and CFO Chris Winfrey called it a “productive relationship,” noting that Charter is treated as an “independent third-party vendor inside the relationship with ActiveVideo” with the ability to see inside the product pipeline and have some oversight on product development.

“That ActiveVideo technology platform allows us to use existing set-top boxes and put a state-of-the-art user interface on those already deployed boxes and not have to replace those boxes, so that they essentially become state-of-the-art boxes,” Rutledge added. “That’s the capital advantage of having that vendor relationship.”

During the call, Rutledge also discussed some other operational efforts that are bearing fruit. In Q1, Charter saw a 15% year-on-year reduction in billing and service calls, and a 19% reduction in service truck roll volume. About 80% of service truck rolls at Charter are now insourced, up from 50% in 2012, he said, adding that call center activity is now 90% insourced.

In April, Charter added an electronic disconnect capability in lieu of physical truck rolls. That is also helping Charter to scale its self-install practices, Rutledge said. 

Confident that the bugs have been worked out and it has a scalable platform on its hands, Charter Communications is now weighing where and how rapidly it will deploy Spectrum Guide, its new cloud-based interface, across its legacy footprint.

“We’re rolling it out now and we have the ability to roll it out inside our own footprint this year, meaning the existing footprint,” Tom Rutledge, Charter’s president and CEO, said Thursday during the company’s Q4 earnings call, noting that it will of course take longer to get it in front of customers that would come way of Charter’s proposed acquisitions of Time Warner Cable and Bright House Networks. “Assuming we close sometime in the near future on those companies, we’re not going to get them completely rolled out this fiscal year but I think we can begin the process by the end of this year.”

Charter has launched Spectrum Guide in Fort Worth, Texas; and Reno, Nev. It can run on Charter’s new Worldbox, an IP-capable device that features a downloadable security platform, as well as the vast majority of its legacy, MPEG/QAM-only set-top – which number about 10 million --  thanks to a cloud-based deliver system from ActiveVideo, the vendor now co-owned by Charter and Arris.

Charter, he said, is still deciding how rapidly it will deploy Spectrum Guide in its existing systems -- whether to roll it out to all outlets en masse, or phase it in incrementally to just new customers and make it optional for current customers.

“We’re still wrestling with the right roll-out strategy,” he said. “But operationally it works very well and it's capable of being fully deployed." 

Rutledge also talked up the potential for Charter’s new platform to support OTT services and cross-platform search.

“It turns every TV into a connected smart TV and allows us to integrate third party video services including over-the-top providers like YouTube, Netflix, Hulu and Amazon Prime, giving customers the ability to search and view all of the content they’re interested in without changing consumer-owned hardware or devices,” he said, adding that the new guide is also being designed to support dynamic ad insertion. (UPC Hungary, a unit of Liberty Global, is using ActiveVideo's CloudTV StreamCast  tech to offer YouTube and other apps on non-IP set-tops). .

Cross-platform search, he said, would be consumer-friendly, but acknowledged that some business issues need to be ironed out first.

“The vast majority of our customers subscribe to us and over-the-top services,” he said. “We want our customers to be fully satisfied in their video experience and have that be as seamless an experience as possible.”

Rutledge was non-committal on DOCSIS 3.1, an emerging multi-gigabit IP platform that Comcast plans to deploy this year in a handful of markets. The first batch of modems based on D3.1 were recently certified by CableLabs.

“We didn’t specifically plan for it [DOCSIS 3.1] in legacy Charter in this fiscal year,” he said. But he expects the technology powering D3.1 to become available at “commercially deployable pricing” within the next 18 months.  “We expect that we will begin the transition in the new company over that time frame." 

Charter is also taking a wait-and-see attitude with the FCC’s proposed set-top rules.

“We haven't seen the proposal yet…fully, but we think it's a very dynamic marketplace and that the business is moving toward app-based display and cloud-based display. We’ll want to work carefully with the FCC as they attempt to change the marketplace as it currently exists.”

Charter Communications shed a bit more light on its downloadable security system, telling the FCC in a filing last week that it had completed two national centralized data centers to support the new platform.

Charter will be deploying the downloadable security platform in tandem with the rollout of the new IP-capable “Worldbox,” and has been rolling it out in dual-security boxes that supports an integrated form of Charter’s legacy security systems as well as the new version.

Charter deployed those dual-security boxes under an FCC waiver that expired at the end of 2015, and told the FCC last week that it was supporting 2.77 million set-tops with integrated security that were covered by that waiver. The FCC’s ban on integrated security boxes ended on Dec. 4, 2015, and is preparing to vote on a new set of set-top box rules.

“Charter commenced its deployments of a new downloadable Worldbox in 2015 and is readying deployment of Worldbox in markets throughout its footprint,” the MSO told the FCC in the filing, calling it a “closing declaration certifying its deployment of a downloadable security system.”

Speaking on Charter’s Q3 2015 call last fall, company president and CEO Tom Rutledge said the MSO was initiating deployments of its new cloud-based Spectrum guide and the Worldbox in St. Louis, Mo., and in Reno, Nev., adding that the MSO was about six weeks behind its original rollout schedule as it ironed out software issues. Humax and Cisco Systems are the known suppliers of the Worldbox (Technicolor acquired Cisco’s set-top box business last year).

Charter’s expected to provide an update on the rollout when it reports Q4 results on Thursday (February 4).

Though one aim of using boxes with downloadable security is to reduce the costs of the devices, Charter customers are not able to lease those devices at lower costs than the fees for Charter’s legacy set-tops, at least not in the early phases of deployment. “Lease charges for downloadable Worldboxes and for CableCARD-enabled set-top boxes are derived from a common equipment basket and are therefore the same,” Charter told the FCC.

Per the conditions of waiver granted by the FCC in April 2013, Charter said discussions with “a consumer electronics manufacturer are continuing,” and that the focus is on an app-based approach for service delivery, similar to Charter’s TV apps for iOS, Android, amazon Kindle and, moset recently, on Roku retail devices. Charter hasn’t announced that CE partner, but the MSO and TiVo have been in talks about a retail solution that would use Charter’s new downloadable security platform.

Charter said it met the public interest condition of making broadband service of 100 Mbps or greater available to 200,000 additional homes ahead of schedule, and is closing in on the completion of its digital conversion, noting that 99% of its subs have converted to all-digital.

Industry analyst Craig Moffett remains a big fan of Charter Communications’s cloud-based video strategy, agreeing with the MSO’s notion that the plan, which relies heavily on ActiveVideo’s platform, will enable the operator to significantly reduce capital spending, particularly at the set-top level.

Moffett, principal and senior analyst at MoffettNathanson, placed an emphasized on that approach in a report on Charter’s capex prospects as the operator pushes ahead with its proposed acquisitions of Time Warner Cable and Bright House Networks.

Moffett said “the most interesting number” in Charter’s pro forma projections for those deals is 11.8% -- the MSO’s “aggressive” pro forma capital intensity forecast for 2019E.

“Charter sees the number not as a short term blip but instead as an indication of a fundamentally different long-term capital intensity profile for the business,” he wrote.

Moffett, which has raised his price target on Charter to $230 to $210, believes that projection for lower capex intensity is “plausible” for Charter, “at least for the residential segment of their business.” For its part, MoffettNathanson’s own analysis of Charter envisions a 12.2% capital intensity, slightly above Charter’s forecast.

A big part of that decrease in capex intensity centers on Charter’s plan to move toward a cloud-based approach with ActiveVideo’s technology (an Arris-Charter joint venture acquired ActiveVideo in May for $135 million) that will allow the MSO to offer its new Spectrum UI and new apps across its footprint to both new IP-capable, such as its emerging Worldbox, as well as to legacy QAM-based boxes that don’t speak IP.

“[W]e believe Charter’s aggressive software and cloud-based approach will lead to a dramatic reduction in…CPE spending,” Moffett noted. “The potential capex savings from the transition from a hardware-based platform to a software-based one appears to be genuine, and make us incrementally more bullish on Cable, particularly on Charter.”

By comparison, he said Comcast, which has conducted some trials with ActiveVideo but has not committed to anything beyond that, will also enjoy a reduction in CPE capex as it expands the reach of the X1 platform, but that Comcast’s approach, which centers on the deployment of IP-capable devices, “will remain more capital intensive than Charter’s.”

Moffett also outlined the four “key” components of a cloud-based guide build: the server costs, seen as the most expensive element, as well as engineering/installation costs, network upgrade costs and app development costs.

With that as the basis, he estimates $2 billion in five-year total capex for a cloud-based guide build compared to $8.4 billion – a 77% reduction in capex -- for IP-enabled boxes for a company the size of pro format Charter.

Speaking on Charter’s Q3 call in October, president and CEO Tom Rutledge noted that Charter was about six weeks behind its original rollout schedule as the MSO irons out software issues.

While that pushes Charter’s prior target of launching its new cloud-powered UI to 1.6 million boxes by the end of the year, “a delay of only six weeks for a footprint-wide rollout should be viewed as very good news,” Moffett said, adding that Charter could have a fully interactive UI in front of all its customer within a couple of years.

Looking ahead, Moffett believes that cable will gain video share thanks to improved platforms and experiences. As for pro forma Charter, he sees it adding about 130,000 net video subs in 2019E. 

Charter Communications’s rollout of its cloud-based Spectrum Guide and new “Worldbox” platform is admittedly behind schedule, but the operator is closing in on launching that product pairing in two markets, Tom Rutledge, Charter’s president and CEO, said on Thursday’s Q3 earnings call.

Spectrum Guide and the Worldbox (pictured), a hybrid QAM/IP device that uses Charter’s new downloadable security system, is being rolled out in St. Lois, Mo.; and in Reno, Nev., “imminently” he said.

Charter hinted in recent FCC filings that Worldboxes were starting to move out into the field, but with respect to the new UI/box mix, Charter is about six weeks behind its original rollout schedule as the MSO irons out software issues, Rutledge said. Earlier this year, Charter said it was also testing Spectrum Guide in Fort Worth, Texas.

Charter had hoped to have Spectrum Guide in front of 1.6 million subscribers this year, but “I don’t think that’s realistic or desirable at this point, given where we are starting,” Rutledge noted. “The plan is to roll it out as rapidly as we can operationalize it.”

So far, that delay does not seem to have hurt Charter, which bucked industry trends by adding 12,000 video subs in the third quarter.

Working primarily with ActiveVideo, a cloud video and apps vendor now owned by a Arris-Charter joint venture, Charter intends to offer the new UI across its set-top base, including non-IP digital boxes that rely on MPEG-based transport. Cisco Systems, which is selling its CPE business to Technicolor, and Humax are the known suppliers of Charter’s new Worldbox.

Rutledge did not shed more light specifically on the MSO's trial of Spectrum TV Stream, a skinny TV product for broadband-only customers that start at $12.99 per month and bundles in a free Roku 3 streaming player. 

But he did note that Charter’s Q3 numbers don’t factor in trial-related activities, while adding “We sell cable television services using IP technology and MPEG technology…What we’re selling is cable television in applications.”

Regarding apps, he said 1.4 million subscribers have downloaded TV Everywhere from Charter to receive services on iOS and Android devices as well as the Roku platform.

Rutledge also reiterated Charter’s position on usage-based broadband pricing: it doesn’t do it now, and has no plans to alter that stance. 

“We don’t do it,” Rutledge said. “We don’t do it because we want to sell more services. That’s our business model.” 

Liberty Global used the IBC confab to show off Horizon Lite, a version of its next-gen video platform that’s made to run on older set-top boxes that don’t support IP connections.

According to Broadband TV News, Horizon Lite will be introduced in some of Liberty Global’s central and eastern Europe systems.  The approach should allow Liberty Global to rapidly expand the reach of its Horizon platform on older boxes even as it continues to deploy new, IP-capable gateways.

The image of the Horizon Lite demo shown above was supplied to Multichannel News by a person in attendance at IBC in Amsterdam.

On its Q2 call, Liberty Global said it added 62,000 new Horizon TV subs in the period, and that it had added almost 600,000 new subs to the platform over the prior 12 month period. It ended the quarter with nearly 4 million “next-gen TV setups,” a figure that factors in Liberty Global’s deployment of TiVo-powered devices.

The report also speculated that Horizon Lite will rely on cloud TV technology from ActiveVideo that can support advanced services and interfaces buy delivering them to boxes in an MPEG stream.  ActiveVideo declined to comment. Liberty Global has been asked to comment on the technical underpinnings of Horizon Lite and the MSO’s rollout plan.

But ActiveVideo and Liberty Global have some business history. UPC Hungary, a unit of Liberty Global, is using ActiveVideo to deliver YouTube to older set-top boxes. Liberty Puerto Rico is also using the vendor's tech for a Social Content Navigator that presents a slate of live TV channels based on their popularity using near real-time viewership data.

Support for Horizon Lite would represent a big win for ActiveVideo, which was acquired in May for $135 million through a joint venture of Arris and Charter Communications. Arris owns 65% of the J.V., though ActiveVideo is operating independently of the companies.  Charter is also relying on ActiveVideo for a new cloud-based Spectrum Guide that can run on the MSO’s entire set-top box footprint.

According to Broadband TV News, Liberty Global also showed off a new “Connect Box” that will be deployed by end of year by Ziggo, Telenet and Virgin Media.  More technical details on the device/gateway, which apparently includes a high-speed modem and integrated WiFi, will reportedly be announced in the next few weeks.  It’s not yet known if the new device will be made to support DOCSIS 3.1, the emerging multi-gigabit platform for HFC networks.

In August, Liberty Global said it was testing D3.1 in the lab, and was preparing for live trials in a subset of its markets in early 2016.

Charter Communications has promoted Rich DiGeronimo to the post of executive vice president, product and strategy, and a role in which he will continue to report to John Bickham, Charter's chief operating officer.

DiGeronimo has been serving as Charter’s SVP, product and strategy since 2011, and has been overseeing the development and deployment of several new Charter offerings, including the Charter TV app, the Spectrum Guide, and the recently announced Worldbox, a new class of hybrid QAM/IP devices CES that will support the operator's new cloud-based UI and Charter’s downloadable conditional access system.

He has also played a big role in coordinating “many internal initiatives,” including Charter’s recently completed all-digital transition, the MSO noted.

"Rich and his team have been an important part of the transformation of Charter over the past several years," Bickham said, in a statement. Rich's leadership in the development of products and services ranging from the Charter TV App to the Spectrum Guide are at the heart of our strategy moving forward and will help Charter continue to be the leading provider of cable services in our markets." 

For more about Charter’s tech transformation, please see this story (subscription required) and interview with DiGeronimo from last fall, when Charter was named MSO of the year by Multichannel News.

Prior to joining Charter in 2008, DiGeronimo was VP and GM of cable markets at Level 3 Communications, and is also late of Bear Stearns, where he worked in investment banking focused on technology firms. 

Las Vegas – International CES – Charter Communications and Cisco Systems used this week’s gadget-fest to unveil the “Worldbox,” a hybrid IP/QAM video device that will use downloadable security and a cloud-based interface that will serve as central components of the MSO’s next-gen video platform.

The companies also announced that Cisco will serve as  a “key” supplier of the Worldbox through 2015 as well as the device’s downloadable conditional access system (DCAS) and digital rights management platform (Charter will use Cisco’s VideoGuard Server for the DCAS and its VideoGuard DRM for security on client devices).

Financial terms were not disclosed, but Cisco will supply a “substantial share” of Worldboxes while also continue to provide CableCARD boxes to Charter until it migrates current and acquired systems to the new DCAS solution. Execs here said the DCAS in use by Charter shares the same “open” architecture for the downloadable system now deployed by Cablevision Systems.

Here during an event for press and analysts, Charter and Cisco showed off the Worldbox and the cloud-based guide that will grace it. Charter has already developed two versions of the Worldbox – and HD client (pictured) above and an HD-DVR model that will come equipped with 1 terabyte of storage. Both models contain 16x4 DOCSIS 3.0 cable modems, 1 Gigabyte of RAM and USB connections “to enable future applications.”

Charter expects to start deployments of the Worldbox and the new downloadable security system in select markets in “early 2015,” an MSO official said. Charter is currently testing the Spectrum Guide with tens of thousands of customers in Ft. Worth, Texas.

Looking ahead, Charter expects to deploy downloadable security to its current systems this year, and then will continue deployment to acquired systems that will come way of a deal that hinges on the pending Comcast-Time Warner Cable merger.

Charter will also look to deploy the new guide to all set-top boxes across its footprint, including older boxes that don’t speak IP, by leaning on a system from ActiveVideo Networks that processes the guide on the network and send the video content and the interface in an MPEG stream. Update: Zodiac Interactive is supplying the software stack powering the device. 

That network-based approach  “makes every box and every TV in the Charter footprint state-of-the-art,” Tom Rutledge, Charter’s president and CEO, said. It also means Charter won’t have to swap boxes to get its new UI deployed broadly. "Smart networks make dumb screens smart," he added. "We can take any kind of device and make it a sophisticated device." 

Rutledge also talked up the economics of the new platform, calling it a “breakthrough in terms of cost and capability.”

While Cisco is Charter’s initial source for the device, Charter is expected to add others into the mix. Charter said it is working with vendors toward manufacturing compatible boxes for the retail market as well.

The network-based processing system will also pave the way for Charter to render its UI on retail boxes. Here at the show, Charter showed a proof-of-concept of the Spectrum Guide running on a Roku box.

“We are proud to join Charter today to showcase the leading edge IP and cloud-based video solutions they are developing, and the Cisco products at their core, Cisco chairman and CEO John Chambers said in a statement. “We are proud to join Charter today to showcase the leading edge IP Charter’s new video solution, featuring cloud-driven video experiences offered across many devices will be a huge win for Charter subscribers.”