Disney, Charter Shake Up Cable Industry In New Agreement
By Movieguide® Contributor
Disney and Charter Communications have come to an agreement, ending blackouts on Disney-owned channels and allowing Spectrum subscribers to include Disney+ and ESPN+ within their cable subscription plan.
“Our collective goal has always been to build an innovative model for the future,” said Disney CEO Bob Iger and Charter CEO Chris Winfrey in a joint statement. “This deal recognizes both the continued value of linear television and the growing popularity of streaming services while addressing the evolving needs of our customers.”
“We also want to thank our mutual customers for their patience this past week and are pleased that Spectrum viewers once again have access to Disney’s high-quality sports, news and entertainment programming, in time for MONDAY NIGHT FOOTBALL,” the statement continued.
Disney and Charter added that the deal is “a transformative, multi-year distribution agreement that maximizes value for consumers and supports the linear TV experience as the industry continues to evolve.”
The deal will provide Spectrum TV Select customers access to Disney+’s ad tier and Spectrum TV Select Plus customers with ESPN+ when the streaming service launches.
Charter can also “offer a range of video packages at varying price points based upon customer viewing preferences.” This was a sticking point of negotiations as Spectrum wants its customers to only pay for the channels they use.
However, not all the changes benefit Charter customers. Freeform, Disney Junior, Disney XD, FXX and Nat Geo Wild will no longer be available under the new deal.
The blackout affected nearly 15 million Spectrum subscribers, which began on August 31. The restored access means those impacted no longer have to worry about how they will view television popular among consumers, such as the NFL.
Movieguide® previously reported:
Charter Communications hopes to rewrite how cable companies provide service through a deal with Disney that allows its subscribers to only pay for Disney’s channels and include Disney+ in their service bundle.
On Thursday, Disney pulled service to ESPN, ABC and the other large channels they own from Charter’s services, affecting nearly 15 million people, Deadline reported. This dispute came as Disney told Charter they would need to raise their prices in order to increase the company’s cash flow.
These blackouts are especially notable as many of Disney’s channels are the avenues for live sports, such as the NFL and college football, which are quickly nearing season kickoff.
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