What is this fight?
On top of that, the fight is over how much Disney can charge Charter for its content, and how much Charter customers will pay for access to Disney’s streaming apps. But it can also have wider consequences. Charter and Disney are two of the biggest players in the cable and TV industry, and they disagree on the best way to distribute movies and TV shows in an era where traditional viewership is disappearing and streaming is on the rise. .
How frequent are these disagreements?
Fights between cable companies and content providers happen all the time. Media companies like Disney typically want to charge more for their content, and cable providers like Charter are trying to cut their costs during a period of declining subscribers. Until an agreement is reached, TV channels are often blacked out by cable and satellite TV providers for days or weeks at a time, frustrating viewers who believe they are not getting their money’s worth.
How is this time different?
Charter positions the blackout of Disney channels, including ESPN, as against the future of TV. The company took the unusual step of scheduling an early-morning news conference Friday to record its position, saying it had tried and failed to persuade Disney to agree to a “transformative deal” merger- along with traditional TV packages and subscriptions to streaming apps. Disney said it has “suggested creative ways to make Disney’s direct-to-consumer services available to their Spectrum TV subscribers.”
How did Disney respond?
Disney hit back at Charter on Friday, blaming the cable company for refusing to enter into a new agreement that “reflects market-based rules.” Disney also said in a statement that it has spent billions of dollars on its streaming services, which include Disney+ and ESPN+, and that Charter wants to provide them to its subscribers for free.
“Charter’s actions are a disservice to consumers ahead of the kickoff for the college football season on ABC and ESPN’s networks,” Disney said in a statement.
What does this mean for viewers?
Until Disney and Charter reach an agreement, the company’s TV channels, including ESPN, will be dark for the 15 million people who subscribe to Charter’s Spectrum service. For many, that means no access to the US Open tennis tournament, no college football on ESPN and no Saturday morning cartoons like “Bluey” on the Disney Channel.
However, viewers have some alternatives. Much of Disney’s content library is available on Disney+, meaning viewers willing to pay a monthly fee can avoid parts of the cable blackout. And streaming services like YouTube TV still carry the ABC broadcast network and its US Open coverage.
There is a chance that with Disney channels going dark on the Spectrum, Charter customers may simply cancel their subscriptions and choose alternatives. But that’s a risk Charter has shown it’s willing to take, especially as its business shifts away from cable and toward subscriptions for products like broadband internet and wireless service.
