As consumers reflect on the era of streaming during the pandemic, they will come to realize that it was a time like no other. However, a recent dispute between Disney and Charter Communications has disrupted the streaming experience for customers of the cable service Spectrum over the Labor Day weekend.
In a blog post, Disney revealed that Charter had declined an offer to extend negotiations. This decision resulted in the loss of access to ESPN, ABC, and other Disney-owned networks for Spectrum customers. Disney also expressed its disappointment with Charter’s demand to provide its customers with free access to Disney’s streaming services.
While Disney values its direct-to-consumer services, CEO Bob Iger has made it clear that returning Disney’s streaming business to profitability is a top priority. Therefore, providing these services for free is not a viable option. Charter, however, claims that Disney was demanding “unsustainable price hikes.”
Charter argued that Disney wanted customers to pay twice for content apps when they have already paid for linear video. The company emphasized that this is not your typical carriage dispute and deemed it significant not only for Charter but also for programmers and the broader video ecosystem.
It is worth noting that Charter was expected to pay Disney over $2.2 billion in 2023, excluding advertising costs. In response to the crisis, Disney has offered Spectrum users an alternative solution – signing up for Hulu+ Live TV, which includes ESPN, ABC, Disney+, and other channels.
As the pandemic years fade away, so too does the streaming experience consumers enjoyed during that time. Netflix, for example, has introduced an ad-supported tier and eliminated its basic plan while cracking down on password sharing. Additionally, Disney recently announced an increase in prices.
The outcome of this dispute between Charter and Disney could have far-reaching implications for the industry’s future and its major players, as well as for consumers themselves.
