EXPERTS: Spectrum-Disney Dispute Will Have “Dramatic Ramifications” on Industry

The Walt Disney Company’s feud with Spectrum TV’s parent company, Charter Communications, could have “dramatic ramifications” for the industry.

Last week, a new feud between two powerful companies emerged and took us by surprise: the feud between Disney and Spectrum i.e., the Walt Disney Company and Charter Communications. The latest in the list of Disney’s feuds quite literally blind-sided many customers. Around 8 p.m. EST on August 31, 2023 (Thursday night), the entertainment giant immediately pulled the plug on its stations, reportedly interrupting many who were watching Disney-owned television programming at that time.

What Happened Between Spectrum and Disney?

The issue boils down to a dispute between the two companies wherein Spectrum insists that Disney is forcing an excessive cost increase to distribute its stations on Spectrum TV. Disney is putting the onus of the situation on Spectrum.

Disney insists Spectrum was the party responsible for the issue and asked Spectrum TV subscribers to write to Spectrum, letting the company know they didn’t want to lose access to their Disney-owned channels.

The list includes:

• ESPN, ESPN2, ESPN Deportes, ESPNU, ESPN News, SEC Network, ACC Network, Longhorn Network
• FX, FX Movie Channel, FXX, Freeform, National Geographic, Nat Geo Wild, Nat Geo Mundo
• Disney Channel, Disney Junior, Disney XD, Baby TV
• ABC On Demand programming and several local ABC stations, including ABC7 Chicago, ABC7 Los Angeles, ABC7 New York, ABC7 San Francisco, ABC11 Raleigh-Durham, ABC13 Houston, ABC30 Fresno

Read More: Spectrum TV Set to Lose All Disney and ESPN Channels

Why Is Spectrum Fighting With Disney?

Charter Communications (Spectrum TV’s parent company) claimed that they offered Disney a fair deal that the Mouse House refused to take and shared in a statement that they were fighting for Spectrum TV subscribers.

The reality, however, is if Spectrum does lose Disney channels and Disney programming, it could be a major loss for the distribution platform and could be the final nail in the coffin for the cable service.

This said, Charter Chief Executive Officer Chris Winfrey saw this battle coming and has been preparing for it for years and is currently trying to fundamentally change the cable industry. Winfrey—for years—has been batting for custom bundles for customers wherein they can pay only for channels they’re actually watching, but executives like Disney CEO Bob Iger hate the idea of the loss in revenue it would result in for the company.

How will Spectrum’s Disney Dispute Impact Other Companies?

“The future of this Charter/Disney negotiation has dramatic ramifications on the rest of the industry aside from Disney,” wrote analysts from the MoffettNathanson research firm, Variety reported.

Another media industry analyst, Steven Cahall from Wells Fargo, shared, “If others follow, this increases the risk of future carriage disputes, blackouts and less affiliate growth.” He added that the fight between Disney and Charter was “likely more tempest than teapot.”

Disney CEO Bob Iger is currently iffy on the future of cable distribution platforms. Still, the fact is streaming services are not yet entirely profitable, and “content companies… need access to whatever cash cable relationships can generate.” 

One thing is clear: this dispute between the Walt Disney Company and Charter Communications could well be the start of a new era with cable and streaming.