Charter Says Disney Carriage Fight Will Negatively Affect Its Financials

By Will Feuer

Charter Communications said its carriage dispute with Disney will negatively affect its operations and financials.

The cable company's efforts to reach an agreement with Disney that would allow Charter to continue to carry Disney's channels, including ESPN, have grown contentious. Disney has pulled its channels from Charter's cable unit, Spectrum, leaving subscribers without the ability to watch the U.S. Open, among other programs.

Charter said in an investor presentation that the decision by Disney "will impact our operations and financials." Charter said it is paying about $2.2 billion a year to Disney, not including advertising revenue for both parties, and only about 25% of Spectrum subscribers regularly engage with Disney content.

"Alternatively, forcing customers to pay for Disney content they opted out of, or don't view and pay even higher rates, would negatively impact our connectivity relationships," Charter said.

The dispute between Charter and Disney comes as cable companies reckon with accelerating cord cutting as consumers focus more on streaming platforms. Disney's ESPN channel and its sister networks are among the most expensive channels for pay-TV distributors because of the high cost of sports-broadcasting rights.

Charter said it wants to work with Disney to establish packages that provide more flexibility for customers. Charter said it has offered to market Disney's streaming services to its internet customers, but Disney declined.

"Disney and Charter will either create value for the video consumer, or we will pivot to alternative video solutions," Charter said.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

September 01, 2023 08:20 ET (12:20 GMT)

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