NEW YORK (TheStreet) -- Charter Communications' (CHTR) package pricing might be a concern for some customers, but they still want it, CEO Tom Rutledge said on CNBC's "Power Lunch" on Thursday afternoon.
Charter Communications has been able to grow its subscriber number, despite an environment of unbundling, or splitting video and broadband, noted CNBC's David Faber. AT&T's (T) DirectTV now offers 100 channels for $35, encouraging people to just use broadband.
Charter Communications hooked up 1.3 million cords last year, some broadband and some video, Rutledge said. In fact, the "single best response" the company gets from marketing is from people who are broadband-only, but want to buy video.
There is an audience willing to pay for "over-the-top programming and limited services," he said. In addition, the DirectTV service seems like a "niche" service rather than a "full" service.
While most customers like the package Charter Communications offers, pricing is "high" because of the amount of content it contains, he admitted. "It's putting a lot of stress on a lot of consumers. But people would rather have it."
Shares of Charter Communications were higher in late afternoon trading on Thursday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Charter Communications as a Hold with a ratings score of C+. The primary factors that have impacted the team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.