Two Years After the Blackout, Disney and Charter Extend Their Carriage Deal
Less than two years ago, Disney and Charter Communications were at odds over a new carriage agreement.
During the standoff, all Disney-owned channels went dark for ten days, robbing Spectrum TV customers of access to some of the most significant events in sports and entertainment.
Charter Spectrum
The crux of the issue was Charter’s desire for leaner television packages and access to Disney’s streaming services.
A Resolution Was Eventually Reached
Eventually, an agreement was reached and the blackout ended. As part of the new agreement, Disney allowed Charter to drop some of its less popular cable networks, including Freeform, Disney Junior, Disney XD, Nat Geo Wild, FXX, and Baby TV.
Additionally, Disney made the ad-supported version of Disney+ available to as many as 9.5 million Spectrum subscribers.
Photo: the wrap
“Our collective goal has always been to build an innovative model for the future. This deal recognizes both the continued value of linear television and the growing popularity of streaming services. While addressing the evolving needs of our consumers,“ Bob Iger and Chris Winfrey said in a joint statement.
The Deal Has Now Been Extended
Over the past two years, the relationship between Disney and Charter has continued to improve. Now, the two entities have reached a new deal.
(Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
Today, Charter and Spectrum announced a distribution deal that will bring ad-supported Hulu to all Spectrum TV Select customers for no extra cost.
Additionally, Charter has agreed to carry the networks that it dropped in 2023.
Photo: Disney
The new deal builds on the 2023 agreement and extends the partnership “well into the future.”
“This extension is a true testament to our mutual confidence in this innovative model — which already is showing improvement in subscriber churn — and our commitment to work creatively together to achieve win-win outcomes for both of us and most importantly for our customers — all achieved mid-cycle and absent from any of the typical pressures from expiring agreements,” said Tom Montemagno, executive vice president of programming acquisition for Charter, in a statement.
Disney’s Comments
Finally, as part of the deal, Charter and Disney will engage in cross-promotional efforts.
“With the addition of Hulu and the return of our full portfolio of channels, we’re pleased to expand and extend our agreement with Charter – delivering the most robust and valuable combination of linear and streaming entertainment for years to come,” said Sean Breen, executive vice president, Disney Platform Distribution, in a statement.
“This agreement reflects our continued focus on leaning into the strength of Disney’s best-in-class programming across every genre and platform – and our shared commitment with Charter to building innovative, consumer-focused distribution models that drive value across the board.”
The Company’s New Perspective
As we have written about extensively, Disney has shown an increased willingness to include its streaming services in wholesale deals. Since 2023, the company has shifted its perspective on the media landscape, now viewing linear and streaming as complementary distribution methods.
Photo: Disney
By restoring its linear networks to Charter and providing Spectrum customers with Hulu+, Disney will now be able to reach more consumers than ever.
