Charter Faces Customer Loss and Stock Drop Amid Disney Dispute
Charter Communications experienced a revenue shortfall due to a fee disagreement with Disney, resulting in a temporary blackout of Disney channels on its cable network.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading teams in delivering impactful news coverage on major events.
Key Insights
- Charter Communications missed revenue expectations following a fee conflict with Walt Disney that caused a temporary removal of Disney channels from Charter's cable lineup.
- The third-quarter earnings report revealed that Charter lost subscribers during the dispute and issued customer credits to compensate for the Disney programming blackout.
- Following the announcement, Charter's shares dropped more than 9%, though they remain positive for the year.
Shares of Charter Communications (CHTR) declined over 9% after the company disclosed in its Q3 earnings that it lost subscribers and provided customer credits due to a fee dispute with Disney (DIS).
In September, Disney temporarily halted its programming on Charter’s Spectrum service for 10 days amid negotiations over a new distribution agreement.
Charter CEO Chris Winfrey described the eventual agreement as "a meaningful advancement for the video ecosystem," while acknowledging the dispute contributed to a loss of 320,000 video subscribers in the quarter. The company also issued $63 million in credits to affected customers.
Revenue from Charter’s video division dropped 8.6% year-over-year. Total revenue reached $13.58 billion, slightly above last year but below analyst predictions. Earnings per share (EPS) of $8.25 exceeded forecasts.
Monthly revenue per residential customer decreased by 0.6% to $119.28, influenced by customer credits for the Disney blackout and a shift toward more non-video services and lower-priced video packages.
Despite the stock decline on Friday, Charter Communications shares remain up 8.9% year-to-date.
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