Charter 2015 Annual Report Download - page 6

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4
In video, our total customer base grew by 11,000 relationships in
2015, compared to a loss of 78,000 last year. This is the first time in
more than a decade that Charter has added video customers
during any 12-month period. Driving that growth is an improved
video offering, with more HD than satellite, VOD and interactive
guide functionality on every device, backed by high-quality
US-based customer service.
We also continued to grow our Internet business in 2015, growing
our residential Internet customer base by nearly 450,000 or 9%.
Our low-cost, high-speed Internet offering provides great value to
consumers, whether purchased inside one of our bundles or on a
standalone basis. At year end, nearly 90% of our residential Internet
customers subscribed to Internet service that provided speeds of
60 Mbps or more. We continue to be an industry leader in Internet
customer growth by offering high speeds at low price points, with
no data caps, no usage-based billing, and no modem rental fees.
And in commercial, we also continued to drive accelerating cus-
tomer growth. We separated our SMB and enterprise segments
early last year, and launched new pricing and packaging to both
marketplaces. We are seeing the results we expected with SMB pri-
mary service unit growth accelerating by 30% in 2015.
We enter 2016 with three key priorities: executing on our core cus-
tomer growth strategy, making the Spectrum product set even
better, and closing and integrating the pending Time Warner Cable
and Bright House transactions.
We remain focused on growing our business by increasing long-
lasting customer relationships. We grow loyal customer relation-
ships by going to market with a simple, high-quality product set—
Charter Spectrum—which we offer at very affordable prices. We
hire, train and manage our employees, creating a skilled labor force
that provides a better service experience to our customers. Today,
nearly 90% of our customer calls are handled onshore and in-house,
and 95% of our service truck rolls are in-house.
We are taking steps to make our Spectrum products even better,
and will be rolling out our new cloud-based Spectrum Guide in
2016. The Guide’s more intuitive and feature-rich user interface
improves both video search and discovery, fully enables our On
Demand offering, and allows us to include Internet video in
the guide which enhances the value of our service. It turns every
TV into a connected Smart TV, and it allows us to integrate
third-party video services, including over-the-top providers, such
as YouTube, Netflix, and Hulu—giving consumers the ability
2015
20142013
$8,419
$9,108
$9,754
REVENUE
IN MILLIONS
7%
INCREASE
Pro forma for certain acquisitions as
if they occurred on January 1, 2013.
2015
20142013
$2,948
$3,190
$3,406
ADJUSTED
EBITDA
IN MILLIONS
7%
INCREASE
See Use of Non GAAP Financial
Measures on page F-50 of this
Annual Report. Pro forma for certain
acquisitions as if they occurred on
January 1, 2013.