Disney–Charter Communications dispute: Difference between revisions

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Impact: The $4b estimate was the potential loss, pre-settlement. Post-settlement number is uncertain.
more on resolution and effects on permanently-dropped channels
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The dispute prevented viewers from watching the season premiere of ''[[The View (talk show)|The View]]'' in markets where ABC stations are unavailable, including [[New York City]] and [[Los Angeles]].<ref>{{Cite web |url=https://deadline.com/2023/09/the-view-whoopi-goldberg-spectrum-disney-1235536889/ |title=Whoopi Goldberg Misses 'The View' Season Premiere Due To Covid; Many Viewers Miss It Due To Disney-Spectrum Battle |date=September 5, 2023 |last=Evans |first=Greg |work=[[Deadline Hollywood]] |access-date=September 6, 2023}}</ref> The blackout could have prevented Spectrum customers from viewing ESPN's coverage of the [[2023 NFL season]], including ''[[Monday Night Football]]'';<ref>{{Cite web |url=https://www.wsj.com/business/media/why-spectrum-customers-cant-watch-the-u-s-open-and-college-football-cfc24af9 |title=Spectrum Customers Lose ESPN as U.S. Open, College Football Heat Up |date=September 1, 2023 |last=Flint |first=Joe |work=[[The Wall Street Journal]] |access-date=September 1, 2023}}</ref> the NFL season premiere of ''Monday Night Football'' featured the [[Aaron Rodgers]]'s debut playing for the [[New York Jets]].<ref name="WSJInfo">{{Cite web |url=https://www.wsj.com/business/media/disney-spectrum-espn-charter-dispute-9147744b |title=Disney Fight Marks Cable TV's Last Stand |date=September 8, 2023 |last1=Marcelis |first1=David |last2=Flint |first2=Joe |work=[[The Wall Street Journal]] |access-date=September 8, 2023}}</ref>
 
On September 11, the dispute ended, returning The Walt Disney Company channels to Spectrum. As part of the deal, Disney+ and ESPN's direct-to-consumer service will be provided to Spectrum TV Select subscribers, and ESPN+ will be available to Spectrum TV Select Plus subscribers. However, eight linear channels did not return to Spectrum customers, including [[Disney XD]], [[Freeform (TV channel)|Freeform]], and [[FXX]].<ref>{{Cite web |url=https://www.wsj.com/business/media/disney-charter-end-carriage-dispute-restoring-espn-other-channels-to-15-million-spectrum-households-6236560c |title=Disney, Charter End Dispute, Restoring ESPN, ABC to 15 Million Households |date=September 11, 2023 |last=Flint |first=Joe |work=[[The Wall Street Journal]] |access-date=September 11, 2023}}</ref>
 
===Affected channels===
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ESPN personality [[Stephen A. Smith]] affirmed his support for Disney in a tweet on September 5.<ref>{{Cite web |url=https://www.nbcsports.com/nfl/profootballtalk/rumor-mill/news/disney-enlists-stephen-a-smith-to-help-with-charter-fight |title=Disney enlists Stephen A. Smith to help with Charter fight |date=September 5, 2023 |last=Florio |first=Mike |publisher=[[NBC Sports]] |access-date=September 6, 2023}}</ref> The [[United States Tennis Association]] expressed disappointment in the halted ESPN broadcast.<ref>{{Cite web |url=https://www.reuters.com/business/media-telecom/disney-charter-talks-new-distribution-agreement-2023-09-01/ |title=Disney, Charter rates dispute spills over to TVs as ESPN, ABC go dark |date=September 1, 2023 |publisher=[[Reuters]] |access-date=September 1, 2023}}</ref> Russian tennis player [[Daniil Medvedev]] stated that he had turned to [[Copyright infringement|pirate websites]] to stream ESPN's coverage of the U.S. Open.<ref>{{Cite web |url=https://variety.com/2023/digital/news/disney-charter-blackout-piracy-espn-us-open-medvedev-1235714966/ |title=Disney-Charter Blackout Forces Tennis Champion to Stream ESPN's U.S. Open Coverage on 'Pirate Websites': 'I Have No Other Choice' |date=September 6, 2023 |last=Spangler |first=Todd |work=[[Variety (magazine)|Variety]] |access-date=September 6, 2023}}</ref> Christopher Winfrey stated his intention to resolve the dispute quickly in a conference call on September 7.<ref>{{Cite web |url=https://www.thewrap.com/charter-ceo-carriage-dispute-disney/ |title=Charter CEO Says There's 'A Sense of Urgency' to Resolve Disney Dispute: 'Our Customers Are Stuck in the Middle' |date=September 7, 2023 |last=Manfredi |first=Lucas |work=[[TheWrap]] |access-date=September 7, 2023}}</ref> [[North Carolina]] governor [[Roy Cooper]] called on both companies to end the dispute.<ref>{{Cite web |url=https://abc11.com/roy-cooper-disney-spectrum-dispute-abc11-abc-news/13744913/ |title=Gov. Roy Cooper calls on Disney, Spectrum to end stalemate |date=September 7, 2023 |publisher=[[WTVD]] |access-date=September 8, 2023}}</ref> [[New York (state)|New York]] governor [[Kathy Hochul]] and the [[New York Department of Public Service]] urged Charter Communications to offer refunds for affected customers.<ref>{{Cite web |url=https://www.democratandchronicle.com/story/money/business/2023/09/08/will-spectrum-refund-customers-for-disney-espn-blackout-ny-is-pushing-for-it/70795966007/ |title=Will you get a refund from Spectrum over blackout? NY is pushing for it |date=September 8, 2023 |last1=Barnes |first1=Emily |last2=Taddeo |first2=Sarah |work=[[Democrat and Chronicle]] |access-date=September 8, 2023}}</ref> According to ''[[Deadline Hollywood]]'', U.S. Open players have access to ESPN.<ref>{{Cite web |url=https://deadline.com/2023/09/us-open-players-esp-access-disney-charter-carriage-standoff-1235538349/ |title=U.S. Open Players Caught In Disney-Charter Carriage Standoff Get ESPN Access To Watch Matches |date=September 6, 2023 |last=Andreeva |first=Nellie |work=[[Deadline Hollywood]] |access-date=September 9, 2023}}</ref>
 
==Resolution==
 
On September 11, the dispute ended, returning The Walt Disney Company channels to Spectrum. As part of the deal, Disney+ and ESPN's future full direct-to-consumer service will be provided to Spectrum TV Select subscribers, and ESPN+ will be available to Spectrum TV Select Plus subscribers. However, eight linear channels did not return to Spectrum customers, including [[Disney XD]], [[Freeform (TV channel)|Freeform]], and [[FXX]].<ref name="wsj-resolution">{{Cite web |url=https://www.wsj.com/business/media/disney-charter-end-carriage-dispute-restoring-espn-other-channels-to-15-million-spectrum-households-6236560c |title=Disney, Charter End Dispute, Restoring ESPN, ABC to 15 Million Households |date=September 11, 2023 |last=Flint |first=Joe |work=[[The Wall Street Journal]] |access-date=September 11, 2023}}</ref>
 
=== Fallout and future of dropped channels ===
The eight channels not being reinstated by Spectrum are: [[Baby TV]], [[Disney Junior]], [[Disney XD]], [[Freeform (TV channel)|Freeform]], [[FX Movie Channel|FXM]], [[FXX]], [[Nat Geo Wild]], and Spanish-language channel [[Nat Geo Mundo]].<ref name="deadline-memo" /> While most of these channels had been relatively recent additions to providers' lineups, ''[[The Hollywood Reporter]]'''s Alex Weprin noted that Freeform traces its origins to the origins of cable TV, specifically the launch of the [[Christian Broadcasting Network]]'s Satellite Service in 1977, suggesting that other longstanding cable channels could be at risk in the future.<ref name="thr-break-bundle">{{cite web|url=https://www.hollywoodreporter.com/business/business-news/disney-spectrum-charter-pay-tv-1235587933/|title=Disney and Charter Avoided Breaking the Pay TV Bundle. Is That Good?|first=Alex|last=Weprin|work=[[The Hollywood Reporter]]|date=September 12, 2023|access-date=September 14, 2023}}</ref>
 
Following the dispute's resolution, Disney executives sent a memo to employees indicating that their commitment to all their brands was unchanged and that they would continue to deliver "high-quality" programming on these channels.<ref name="deadline-memo">{{cite web|url=https://deadline.com/2023/09/disney-commitment-fxx-freeform-reaction-charter-deal-dana-walden-1235543864/|title=Disney Top Executives Assure Staff Of Commitment To FXX, Freeform & Other Cable Nets Dropped By Charter|first=Nellie|last=Andreeva|work=[[Deadline Hollywood]]|date=September 11, 2023|access-date=September 14, 2023}}</ref> In a separate interview, [[Disney Entertainment]] executive [[Dana Walden]] noted that most of the original programs on the affected channels were eventually also funnelled onto higher-penetration channels (i.e., the main [[Disney Channel|Disney]] and [[National Geographic (American TV channel)|Nat Geo]] channels) as well as Disney+ and/or [[Hulu]].<ref>{{cite web|url=https://www.hollywoodreporter.com/business/digital/disney-dana-walden-espn-jimmy-pitaro-spectrum-deal-interview-1235587183/|title=What Disney Got, and Gave Up, to Make a Deal With Spectrum; Dana Walden and Jimmy Pitaro Talk Details|first=Alex|last=Weprin|work=[[The Hollywood Reporter]]|date=September 11, 2023|access-date=September 14, 2023}}</ref>
 
Nonetheless, in the immediate aftermath of the resolution, FX executives were reported to be looking into alternate means of allowing Spectrum customers to watch the ongoing final season of ''[[Archer (2009 TV series)|Archer]]'' through cable TV, even without access to FXX. No similar reprieve was expected for Freeform programming, on the basis that the vast majority of viewership for these programs already occurs through streaming on Hulu.<ref>{{cite web|url=https://deadline.com/2023/09/archer-final-season-disrupted-disney-charter-deal-its-always-sunny-grown-ish-bluey-impact-spectrum-1235543248/|title=‘Archer’ Final Season Disrupted As Disney-Charter Deal Also Impacts Linear Viewing For ‘It’s Always Sunny’, ‘Grown-ish’ & ‘Bluey’|first=Nellie|last=Andreeva|work=[[Deadline Hollywood]]|date=September 11, 2023|access-date=September 14, 2023}}</ref>
 
Despite Disney's statement, several financial analysts suggested the deal was a precedent that could result in other service providers pushing Disney to drop these same channels, while attempting to extract similar concessions from other large channel operators, and that Disney would have to rethink its investments in those channels going forward.<ref name="thr-break-bundle" /> ''THR'''s Weprin concluded, "the long-term future of these channels is now firmly in doubt".<ref name="thr-break-bundle" />
 
==Notes==