Disney-Charter Dispute Is a Case of Mutually Assured Destruction

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Disney-Charter Dispute Is a Case of Mutually Assured Destruction
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A dispute between Disney and Charter Communications ultimately led to customers of the cable service Spectrum being cut off over the Labor Day holiday weekend.

A dispute between Disney and Charter Communications , ultimately led to customers of the cable service Spectrum being cut off over the Labor Day holiday weekend.

Disney said that Charter declined an offer to extend negotiations, which would have kept ESPN, ABC, and other Disney-owned networks available for customers, in separate a blog post Sunday. The company also said Charter wanted to give its customers free access to Disney’s streaming services. Charter said Disney wanted customers to “pay twice” to get content apps with the linear video they have already paid for. “This is not a typical carriage dispute. It is significant for Charter, and we think it is even more significant for programmers and the broader video ecosystem,” the company said in a statement Friday.

“The linear TV business model is broken. The only thing that can save it somewhat longer term is by combining and bundling with OTT services,” they said. They added that it “remains unclear” whether Charter is prepared to lose Disney networks permanently but that such battles usually end in an agreement being reached.

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