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NEW YORK - Spectrum Reach, the advertising arm of Charter Communications (NASDAQ:CHTR) - a prominent player in the Media industry with annual revenue of $55.22 billion - and AI video startup Waymark have created over 15,000 television advertisements for local businesses since forming their partnership in early 2023, according to a statement released Thursday.
The collaboration enables small businesses to produce professional-quality TV commercials at affordable prices using AI-driven technology. The partnership has recently introduced new features including "Click to Edit," which allows advertisers to modify text and visual elements directly on videos, and is testing "Waymark Cinematic," a premium offering that incorporates narrative storytelling and enhanced visual effects. According to InvestingPro data, Charter Communications maintains a strong market presence with a healthy gross profit margin of 55.17%.
Fun Spot America, a group of amusement parks based in Orlando, Florida, utilized the service to create a commercial for a season pass promotion. The ad combined footage from Spectrum Reach’s in-house creative agency with Waymark’s AI capabilities, including an AI-generated alligator.
"The final product exceeded our expectations; the quality felt like something that you’d see in a movie," said John Arie Jr., CEO at Fun Spot America, in the press release.
Argus Technical Services, a Milwaukee-based staffing agency, also reported positive results from its TV advertising campaign created through the partnership.
"Working with Spectrum Reach and Waymark allowed us to create those ads, in budget, ultimately connecting us with more candidates," said Sean Sayrs, President at Argus Technical Services.
Michael Guth, Senior Vice President of Marketing at Spectrum Reach, stated that the partnership gives small businesses the opportunity to access TV advertising without traditional complexities.
Spectrum Reach is the advertising sales business of Charter Communications, Inc. (NASDAQ:CHTR) and operates in 36 states across 91 markets. Waymark specializes in AI-driven video production technology that enables businesses to create broadcast-ready advertisements quickly. InvestingPro analysis indicates Charter is currently trading below its Fair Value, with multiple additional insights available through their comprehensive Pro Research Report, one of 1,400+ detailed company analyses available to subscribers.
In other recent news, Charter Communications has been in the spotlight with several significant developments. Charter completed a $2 billion senior secured notes offering, which includes $1.25 billion in notes due in 2035 with a 5.850% interest rate and $750 million in notes due in 2055 with a 6.700% interest rate. This financial maneuver aims to bolster Charter’s capital structure. Meanwhile, analyst firms have expressed concerns about Charter’s future performance in the broadband market. KeyBanc Capital Markets maintained an Overweight rating but lowered its price target to $430, citing expected weak broadband subscriber numbers due to heightened competition. Bernstein SocGen also reduced its price target to $350, maintaining an Outperform rating, while Goldman Sachs downgraded Charter to a Sell rating with a $223 price target, pointing to competitive pressures from telecom operators and fixed wireless access. Additionally, Comscore, in collaboration with Charter Communications and others, announced a recapitalization agreement that eliminates its annual dividend obligations, strengthening its financial position. These developments highlight the evolving dynamics and challenges in the broadband sector.
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