Charter and Disney have announced a multi-year distribution deal that they say maximises value for consumers and supports the linear television experience as the industry continues to evolve. It is widely seen as a win for both sides. As a result, most Disney networks and stations were restored to Spectrum video customers just in time for the Monday Night Football.
Charter provides cable television services to around 14 million subscribers under the Spectrum brand. Disney Channels had been blacked out for Spectrum customers since the end of August while the companies were unable to reach an agreement over the terms and conditions of carriage.
Charter had demanded that Disney allow greater flexibility over how its channels were bundled and provide its subscribers access to its direct-to-consumer services like Disney+. There was a presumed possibility that Charter could walk away from the television business and concentrate on its broadband services if an agreement could not be reached.
As a result of what is described as a “transformative agreement,” Spectrum TV will offer a more curated line-up of 19 networks from The Walt Disney Company, including the ABC owned television stations, Disney Channel FX and the Nat Geo Channel, as well as the full suite of ESPN networks. A number of other networks that will no longer be included in Spectrum TV packages. Charter will maintain flexibility to offer a range of video packages at varying price points.
In the coming months, the Disney+ Basic advertising supported offering will be provided to customers that purchase the Spectrum TV Select package. ESPN+ will be provided to Spectrum TV Select Plus subscribers. The ESPN direct-to-consumer service will be made available to Spectrum TV Select subscribers when it launches.
Charter will also offer the Disney direct-to-consumer services, including Disney+, Hulu, and ESPN+, to all its customers, including its broadband-only customer base.
Charter is preparing to launch its own Xumo-branded online platform through its joint venture with Comcast.
In a joint statement, Bob Iger, the chief executive of The Walt Disney Company, and Chris Winfrey, the chief executive of Charter Communications, said: “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.”
Analysts mainly saw the deal as a win for both parties. The agreement provides a precedent for future distribution agreements, easing the transition from the traditional bundle of channels to a world of online apps.
The deal was secured just in time for the Monday Night Football season debut, which was watched by a record 22.6 million viewers in the United States, with a peak audience of 25.2 million viewers watching the Buffalo Bills at the New York Jets.