How Disney-Charter Deal Benefits Cable
By Movieguide® Contributor
Following a groundbreaking deal between cable provider Charter and Disney, Nexstar explained why the deal is so monumental for broadcast TV.
The company released a report showing that the deal was positive because “premium content got paid,” “direct to consumer (DTC) service[s] became a part of the bundle” and the “bloated cable portfolio” was reduced.
Disney and Charter came to a distribution agreement in mid-September after a weeklong blackout of Disney-owned channels for Charter subscribers. The deal ended up providing Charter subscribers with options to include Disney+ in the cable bundle as well as a variety of subscription tiers, including a differing number of Disney-owned channels.
This deal was monumental as it provided Charter subscribers with more content—primarily through the option of adding Disney+—without raising the subscription cost across the board.
The Disney-Charter deal matters for Nexstar because the company provides access to broadcast networks—the most popular networks on cable TV.
By providing customers with better subscription bundles, the Disney-Charter deal has laid the groundwork for a model that could become a new industry standard and help stabilize the cable market, perhaps even alluring some customers back to the product.
The cable business has been dying out in recent years as many households opt for streaming services over linear television. In July, cable and broadcast TV made up less than 50% of all TV usage in the U.S. for the first time since Nielsen ratings began tracking TV usage by platform.
As families continue to cut cords and competition between different entertainment sources heats up, cable and broadcast TV are in serious danger of becoming obsolete. Through innovations, like the Disney-Charter deal, however, the industry can still be saved.
Movieguide® previously reported:
Disney and Charter have agreed to offer a bundle that combines their services, a package that could change cable forever.
“The two companies were in fierce negotiation—and competition,” The Verge reported. “Charter, the second-largest cable provider in the US, with over 32 million subscribers, was tired of the high price of Disney’s channels, particularly its pricey crown jewel, ESPN.”
“But with its declining subscriptions and the constant headlines about the death of cable TV, Charter was on its back foot in negotiations. Disney, with ESPN, its over 150 million Disney Plus subscribers, nearly 50 million Hulu subscribers, and more than 4 million Hulu with Live TV subscribers, was not,” the outlet added.
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