Disney Urges Customers to Consider Switching Pay-TV Services Amidst Carriage Dispute with Charter

Disney Urges Customers to Switch Pay-TV Services Amid Carriage Dispute with Charter

UPDATED with Sunday statement. Disney offered an updated statement Sunday on its thorny carriage dispute with Charter, urging customers to explore switching pay-TV services if they want access to ESPN and other networks.

The statement emphasized that consumers have many options today and can choose from competing pay-TV providers that offer Disney’s entire portfolio of networks and programming. It also mentioned TV streaming services that can be accessed by downloading an app or over a broadband connection. However, the statement did not mention that Disney itself is one of those pay-TV providers, with Hulu + Live TV serving 4.3 million subscribers.

Nearly 15 million customers of Charter, the No. 2 U.S. cable operator, have been without ESPN and 17 other Disney networks, as well as eight ABC stations in major markets, since Thursday due to the impasse. The dispute comes at the start of college football season and on the eve of the NFL campaign, with ESPN carrying important games during this time.

Disney’s statement also addressed a point made by Charter regarding engagement. While Charter executives claimed that only 25% of its customers regularly tune in to Disney programming, with 50% actively engaged, Disney countered with data from Nielsen. According to Disney, 71% of Charter subscribers tune into Disney’s networks or stations in an average month, collectively watching over 3.3 billion hours of content over the past year.

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Disney has hit back at claims by Charter Communications executives that the media company declined to pursue innovative carriage deals and instead just wanted to ram through price increases.

The companies have been locked in a carriage dispute since last night, with ESPN and 17 other Disney networks going dark on Charter’s Spectrum TV service, along with eight ABC stations. The outage is affecting nearly 15 million Spectrum subscribers in many key markets, including New York and LA, and is happening during the start of college football season and the upcoming NFL season.

Charter set a conference call with Wall Street analysts to discuss the situation, where the company expressed its consideration of “moving on” from the pay-TV business due to cord-cutting and the unsuccessful negotiations with Disney. The stocks of cable network owners, including Paramount, Disney, Warner Bros. Discovery, and Comcast, declined as a result.

Disney responded to Charter’s claims by stating that it had offered Charter the most favorable terms on rates, distribution, packaging, advertising, and more. Disney also proposed creative ways to make its direct-to-consumer services available to Spectrum TV subscribers. The media company accused Charter of depriving consumers of content by failing to ascribe any value in exchange for licensing those services.

Disney described its linear channels and direct-to-consumer streaming outlets as complementary products, emphasizing its investments in original content for both platforms. The statement concluded by expressing Disney’s willingness to return to the negotiation table to restore access to its content for Charter’s customers as quickly as possible.

The dispute between Disney and Charter continues, leaving millions of viewers without access to popular networks and programming.

Should Disney’s statement have included its own Hulu + Live TV service as an option for customers seeking an alternative pay-TV provider amidst the dispute with Charter

Disney has issued an updated statement urging customers to consider switching pay-TV services amid its ongoing carriage dispute with Charter. The statement highlights that consumers have numerous options available to them, including competing pay-TV providers and TV streaming services. However, it notably fails to mention that Disney itself is a pay-TV provider with its Hulu + Live TV service. The dispute has left nearly 15 million Charter customers without access to ESPN, 17 other Disney networks, and eight ABC stations. The timing of the dispute is particularly significant as it coincides with the start of college football season and the upcoming NFL campaign, both of which feature important games broadcasted by ESPN. Disney’s statement also addresses Charter’s claim that only 25% of its customers regularly tune in to Disney programming, countering with data from Nielsen that shows 71% of Charter subscribers watch Disney networks or stations in an average month, totaling over 3.3 billion hours.