Disney and Spectrum Reach a Carriage Deal, But there’s a Catch…

After a tense few weeks, Disney and cable giant Spectrum have finally reached a new carriage agreement. However, Sepctrum reportedly won’t be carrying all of Disney’s channels going forward… just some.

In a jount statment, Disney CEO Bob Iger and Charter CEO Chris Winfrey said “Our collective goal has always been to build an innovative model for the future. This deal recognizes both the continued value of linear television and the growing popularity of streaming services while addressing the evolving needs of our consumers. We also want to thank our mutual customers for their patience this past week and are pleased that Spectrum viewers once again have access to Disney’s high-quality sports, news and entertainment programming, in time for Monday Night Football.”

So here’s the downside for some customers. The new agreement apparently won’t include many Disney channels such as Freeform, Disney Junior, Disney XD, FXX, and Nat Geo Wild to name a few. There will be a stronger focus on Disney’s core channels such as ABC ESPN networks, FX, Nat Geo, and ABC stations.

Another part of the deal is a greater focus on Disney+ streaming and sports packages, per The Hollywood Reporter…

Disney says that Charter will give its Spectrum TV Select customers access to Disney+ with ads, in a “wholesale arrangement” between the companies. ESPN+ will be provided to Spectrum TV Select Plus customers (Plus being the more sports-centric tier), with the flagship ESPN streaming service being made available to those customers when it launches.

Charter will also market Disney’s streaming services to its broadband customers. As for the ability to tier some of Disney’s channels, the companies say that Spectrum “will maintain flexibility to offer a range of video packages at varying price points based upon different customer viewing preferences.”

The deal also includes more advertising of Disney’s streaming services and a renewed commitment from both companies to crack down on password sharing.

Disney and Spectrum Carriage Dispute Breakdown

Disney and Charter Communications (Spectrum) were in a dispute over carriage fees for Disney-owned channels. The dispute began when a 2019 deal expired and the two companies couldn’t reach a new agreement. Disney pulled its channels from Spectrum when a new deal couldn’t be reached. The dispute affected 15 million Spectrum subscribers.

The dispute involved channels such as ABC, ESPN, FX, and National Geographic. Charter proposed a model that would create better value for consumers and the industry, but Disney declined. Charter said that the current video ecosystem is broken and unsustainable.