Charter Communications, enmeshed overnight in a massive carriage dispute with Walt Disney Co., said Friday it hopes it can turn the breakdown into a new fix for the media industry as cable subscrib…
, enmeshed overnight in a massive carriage dispute with Walt Disney Co., said Friday it hopes it can turn the breakdown into a new fix for the media industry as cable subscribers keep migrating to streaming alternatives., Charter’s CEO, during a call with Investors Friday morning.
Charter and Disney, one of the nation’s biggest cable providers and one of the nation’s most popular content companies, came to an impasse Thursday, with Disney pulling, ABC, and other big TV networks from Charter’s systems — on the cusp of the start of both the NFL and college-football seasons. Charter’s systems include some that serve New York City and Los Angeles, two of the biggest media markets in the country.
“Disney Entertainment has successful deals in place with pay TV providers of all types and sizes across the country, and the rates and terms we are seeking in this renewal are driven by the marketplace,” Disney said in a statement. “We’re committed to reaching a mutually agreed upon resolution with Charter and we urge them to work with us to minimize the disruption to their customers.”
Doing so, however, may not be accomplished using the company’s regular playbook. Charter made its case Friday, noting that the rise of streaming services such as Disney+ and Hulu has degraded cable, forcing customers to pay for channels that have less premium content, or for networks they may not regularly use, then spurring them to pay in a second arrangement for a streaming alternative.
Charter, said Winfrey, has proposed a new model that would allow for the flexibility of not forcing customers who don’t regularly engage with Disney or ESPN networks to pay more money for them, while making available ad-supported versions of Disney streaming services as part of packages.
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