Spectrum Tries to Stem Customer Losses with Free Amazon Prime

Spectrum, the flagship internet and cable brand of Charter Communications (CHTR), is trying to stem its losses of broadband customers by offering free Amazon Prime memberships to eligible subscribers. The promotion aims to reverse a trend that saw the provider lose 172,000 internet customers in the second quarter alone.

The $14.99-per-month Amazon Prime membership will be available at no cost to new and existing Spectrum internet customers across all service tiers, including those enrolled in the company's low-income broadband program, Spectrum Internet Assist. Even customers who already pay for Prime can transition their existing membership through a dedicated website, but they must first cancel any third-party arrangement.

This move comes after Charter reported a 3.2% year-over-year decline in internet revenue and acknowledged increased competition from fixed wireless access providers like T-Mobile (TMUS) and Verizon (VZ), as well as aggressive fiber expansion by AT&T (T).