Disney and Charter Communications Reach Agreement to Restore Channels to 14.7 Million Households
Disney, the parent company of channels such as ESPN and ABC, has reached an agreement with cable operator Charter Communications that will restore the channels to 14.7 million households. This comes just in time for the 2023 season premiere of “Monday Night Football.” The blackout caused nearly 15 million subscribers to miss recent events such as the U.S. Open and the opening weeks of college football.
How ‘Monday Night Football’ Moved this Along
The high-profile “Monday Night Football” opener between the Buffalo Bills and New York Jets played a significant role in pressuring a resolution to the dispute between The Walt Disney Company and Charter Communications. This game marked the New York debut of Aaron Rodgers, making it an important event on the sports calendar. Charter seemed willing to walk away from Disney and even the entire linear video model if necessary, as noted by the MoffetNathanson research firm.
Larger Issues Linger
While the agreement between Disney and Charter is a short-term solution, larger issues regarding video distribution still remain. The deal includes making ESPN flagship direct-to-consumer service available to Spectrum TV Select subscribers upon its launch, and ESPN+ will be provided to Spectrum TV Select Plus subscribers. However, the future of video distribution is uncertain.
What They’re Saying
In a joint statement, Disney CEO Bob Iger and Charter CEO Chris Winfrey acknowledged the value of linear television and the growing popularity of streaming services. They stated that the agreement addresses the evolving needs of consumers and expressed gratitude to their mutual customers for their patience during the blackout.
Backstory
Charter Spectrum is the second-largest cable TV provider in the U.S. During the blackout, Charter claimed to have offered Disney a fair deal, while Disney argued that the rates and terms they were seeking were driven by the marketplace.
Conclusion
The resolution of the dispute between Disney and Charter Communications is a relief for the 14.7 million households that were affected by the blackout. With the channels restored just in time for the season premiere of “Monday Night Football,” subscribers can now enjoy their favorite sports, news, and entertainment programming. However, while this agreement provides a temporary solution, the larger issues surrounding video distribution and the future of linear television still need to be addressed.