Charter restores Disney-owned cable channels for Spectrum customers

Los Angeles Times

2 days ago

Charter Communications is returning the Walt Disney Co.-owned cable channels that were dropped from its Spectrum TV service in 2023 after the two sides negotiated new terms for carrying ESPN and ABC.
The companies announced Thursday an 'expanded distribution agreement' that will give Spectrum TV Select customers the ad-supported version of streaming platform Hulu and eight linear TV channels: Disney Jr., Disney XD, Freeform, FXX, FXM, Nat Geo Wild, Nat Geo Mundo and BabyTV. They will be added at no additional cost for subscribers.
The cable channels were dropped in 2023 when the companies were unable to agree on terms for carrying ESPN and ABC, which led to a 10-day blackout for Spectrum customers.. The standoff kept tennis fans in Spectrum homes from seeing ESPN's U.S. Open coverage and threatened access to the season premiere of 'Monday Night Football.'
At the time, Charter resolved the dispute by agreeing to pay higher fees to keep the rights to carry the main engines of Disney's TV lineup — including ESPN and ABC — but had to sacrifice some of the company's smaller channels. Charter had sought to get free access to Disney's streaming channels for its customers as well.
The terms of the expanded deal to return the dropped channels and add Hulu were not disclosed beyond saying it was 'financially net positive for both companies.' It's likely Disney needed to maintain the distribution of the channels to Charter's nearly 15 million cable homes to keep them viable for advertisers.
'These channels expand Spectrum's entertainment offering and create meaningful value for both companies by boosting advertising reach and strengthening audience engagement across platforms,' Charter said in its announcement of the deal.
The Disney-Charter pact is a sign of how both programmers and cable and satellite services are being more flexible as they contend with the steady decline of pay TV customers. Pricing is a key reason consumers have abandoned traditional TV for streaming.
Separately, satellite TV provider DirecTV announced Thursday it will offer a new slimmed-down package of channels called MyKids, designed for younger viewers. The package offered for $19.99 a month will provide access to kid- and teen-oriented channels from Disney, Paramount Global, Warner Bros. Discovery and Weigel Broadcasting.
MyKids, which includes Nickelodeon, Disney Channel, Cartoon Network and MeTV Toons, is one of the newest lower priced genre-based packages DirecTV is offering to customers. In addition to MyKids, DirecTV customers can select packages with news, entertainment, sports and Spanish-language channels, all priced well under the monthly cost of subscribing to the entire channel lineup.