Charter asserted that requiring customers to pay for Disney content they may not want or watch, and subsequently increasing rates, would have a detrimental effect on their connectivity relationships. The dispute between Charter and Disney is taking place amidst an environment of rampant cord cutting, as consumers increasingly prioritize streaming platforms over traditional cable services. Pay-TV distributors bear the brunt of high costs for sports-broadcasting rights associated with channels such as Disney’s ESPN, making them some of the most expensive channels to carry.
Chart is striving to collaborate with Disney to develop packages that offer customers greater flexibility. They have offered to market Disney’s streaming services to their internet customers, but Disney declined the proposal. Charter made it clear that they will either work with Disney to provide value for the video consumer or seek alternative video solutions.
Overall, Charter Communications is facing significant challenges due to its dispute with Disney. The outcome of this disagreement will undoubtedly shape the future of their operations and financials.