A Deal Between Disney and Charter Is Imminent
After nearly ten days of madness, it appears as if our long national nightmare is coming to an end, and Disney and Charter Communications have reached a new carriage deal.
The new deal would end a blackout of Disney-owned stations on Charter’s Spectrum TV, the second-largest carrier in the United States.
Now that an agreement has been reached, Spectrum subscribers will be able to watch the first Monday Night Football of the season on ESPN tonight.
Media observers had previously mentioned the Monday Night kickoff as a possible red line, after which an agreement between Disney and Charter would not come to fruition.
It’s All About Streaming
The crux of the standoff between Disney and Charter revolved around streaming.
Charter believed that its Spectrum subscribers should have access to Disney’s direct-to-consumer services for the price that they are paying.
Just days ago, Charter CEO Chris Winfrey floated the idea that Charter could simply move forward without Disney-owned channels, and create a new “sportless” package.
According to Winfrey, the economic model that has viewed linear television and direct-to-consumer service as two separate entities is flawed.
“They’re focused on direct-to-consumer businesses as if it was a completely separate business,” Winfrey said. “I don’t think it’s a separate business. You have to take a look at the two together; you have a consolidated set of cash flows.”
Winfrey believes that media companies like Disney have propped up streaming while letting their “linear programming house burn to the ground.”
A Deal Has Been Reached
While the exact details of the new deal are not known, the agreement between Charter and Disney will give Spectrum subscribers a discount on Disney’s streaming services. In exchange, Charter will pay a higher carriage rate.
In the end, it looks like both sides gave a little to come to an agreement.
As always, be sure to check back with MickeyBlog. We will continue to bring you updates on the Disney-Charter blackout as they happen.