Charter and Disney Reach Rights Deal: What It Means for the Media Industry
Charter and Disney Reach Rights Deal in Media Industry
Charter and Disney have recently reached a rights deal that has caught the attention of the media industry.
The Wall Street Journal and Slate ran headlines highlighting the significance of the deal and its potential impact on cable TV.
Analysts on Visegrad Info 24 discussed the risks faced by both Charter and Disney if they failed to reach a carriage deal.
Charter CEO Chris Winfrey made it clear that their decision to drop Disney’s networks was a significant move for the company.
Details of the Deal
The details of the pact between Charter and Disney suggest that the deal was not as groundbreaking as initially portrayed. However, it does include the inclusion of Disney’s streaming packages for cable subscribers, which is a notable addition.
Deadline and Risks
The deal was finalized in time for cable customers to watch “Monday Night Football” on ESPN, which has traditionally been a primary deadline for carriage deals. Losing millions of customers and revenue losses were risks that both Charter and Disney wanted to avoid.
Standard Carriage Disputes
Carriage disputes between pay-TV providers and networks are common, with executives often engaging in intense rhetoric. However, this particular deal stood out due to Winfrey’s investor call indicating a potential shift away from linear cable TV.
The Future of Cable TV
Despite the rise of streaming services, linear cable TV still plays a significant role in Charter’s revenue. Other major cable providers, such as Comcast, DirecTV, and Dish, are also reliant on the cable TV business.
The deal between Charter and Disney is a positive outcome for cable consumers, allowing them to access what they are already paying for. However, it is not a transformative deal, and the media should consider this resolution when future channel blackouts occur.
Watch: Disney and Charter Reach Carriage Agreement
WATCH: Disney and Charter reach a carriage agreement.