Disney Pushes Charter Subscribers to Sign Up for Hulu with Live TV
By Movieguide® Contributor
Disney’s promotion of Hulu’s live programming suggests that its battle with Charter Communications may not be solved quickly.
Last Thursday, Disney pulled its programming from Charter’s Spectrum cable service, cutting access to networks like ESPN, ABC and Disney Channel to nearly 15 million subscribers. This blackout came as Charter sought to renegotiate its terms with Disney.
While Disney demanded a flat rate increase for Charter to continue distributing its networks, Charter instead hoped to change the cable business and only charge customers who frequently use Disney’s services for access to these channels.
Charter also hoped to provide Disney+ access to its subscribers at no extra cost to offset the degrading value of cable as more premium content is locked behind streaming services.
“This is not a typical carriage dispute,” Charter’s CEO said, noting that this new approach to pricing could help save the dying cable business. Only 25% of Charter’s current subscribers frequently watch Disney-owned networks.
“We propose the model to Disney that we believe creates better alignment for the industry and better products for customers, a model that can stabilize linear video and create a clear growth path for direct to consumer video with a more customer friendly and financially attractive end state for programmers,” he continued, per MSN.
Disney, meanwhile, claims that this proposal is outlandish, noting that it “has successful deal in place with pay TV providers of all types and sizes across the country, and the rates and terms [it] is seeking in this renewal are driven by the marketplace.”
While Charter was hoping for a quick resolution to this dispute, it is clear that will not come, as Disney went on a social media campaign this weekend, reminding Charter subscribers that Hulu’s live TV option would provide them access to many of the same channels as their cable subscription along with many more.
“There’s no contract, no cable box, and no wait time to subscribe,” Disney said of Hulu in a blog post on Sunday.
“Disney deeply values its relationship with its viewers and is hopeful Charter is ready to have more conversations that will restore access to its content to Spectrum customers as quickly as possible,” the company wrote. ”However, if you are one of these frustrated customers, it can be infuriating to not be able to access the content you want. Luckily, consumers have more choices today than ever before to immediately access the programming they want without a cable subscription.”
“Hulu + Live TV also comes with Hulu’s deep library of exclusive TV shows and hit films, ad supported Disney+ and ESPN+ all in one plan, and unlimited DVR, which allows you to record and store your favorite content for up to none months,” the company added. “Disney’s networks and stations are also available on other TV streaming services such as DIRECTTV Stream, YouTube TV, Sling, and Fubo.”
With this aggressive marketing away from Spectrum, Charter may need to yield to Disney. Otherwise, the cable provider risks losing a significant amount of subscribers as it would be unable to provide access to most live sports—one of the main reasons people keep their cable subscriptions.
