Disney and Charter Reach $50B 2025 Deal to Restore ESPN & ABC on Spectrum

Just ahead of Monday Night Football 2024, Disney (NYSE: DIS) has officially restored its ESPN, ABC, and other popular channels to Charter Communications’ Spectrum cable service, ending a 10-day blackout that left millions without access to key sports and entertainment content.

Highlights of the New 2024 Agreement

• Disney and Charter resolved their dispute, restoring Disney content on Spectrum just in time for the football season kickoff.
• Spectrum TV Select subscribers now gain exclusive access to Disney’s ad-supported streaming platforms, including Disney+ Basic.
• Subscribers to Spectrum TV Select Plus receive ESPN+ as part of the enhanced content package.
• Both companies commit to combating password sharing to protect content value.

The blackout began on September 1, 2024, when Disney withdrew its programming from Spectrum amid contract negotiations. Charter raised concerns over Disney’s increasing fees for broadcast channels and the migration of premium content to Disney’s direct-to-consumer streaming platforms.

Under the new deal, Spectrum customers not only have full access to Disney’s traditional cable content but also enjoy new streaming perks based on their subscription tier. For example, Spectrum TV Select customers can now use Disney’s ad-supported Disney+ Basic platform, with plans to add ESPN’s direct-to-consumer service upon its launch. Spectrum TV Select Plus subscribers benefit from ESPN+ inclusion, enhancing their sports viewing experience.

Charter will also offer Disney’s suite of streaming services—including Disney+, Hulu, and ESPN+—to its substantial broadband-only customer base, broadening entertainment options beyond traditional cable.

Addressing the Shift to Streaming and Consumer Flexibility

This dispute marked a shift from typical carriage negotiations focused solely on fees. Instead, Charter emphasized the tension between traditional linear TV models and the growing demand for direct-to-consumer (DTC) streaming services. As Charter noted, the past decade has seen a decline in linear subscriptions due to premium content moving to streaming platforms, alongside rising programming costs.

Charter expressed concerns about customers potentially paying twice—once for linear TV and again for streaming apps offering the same content. Disney countered that providing their streaming services for free alongside cable content is not economically viable and that consumers value the flexibility to subscribe to streaming platforms independently.

With the 2024 agreement finalized, Disney CEO Bob Iger and Charter CEO Chris Winfrey highlighted that the deal sets a precedent for an innovative hybrid content delivery model that respects both traditional television and the growing streaming market.

"This partnership balances the enduring appeal of linear TV with the booming popularity of streaming services, meeting evolving consumer needs," the CEOs stated jointly.

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