Disney has prevented its channels from reaching approximately 15 million customers of the second-largest cable TV provider in the United States, Charter Spectrum. The blackout means that viewers in major markets like New York and Los Angeles can no longer access Disney-owned channels such as ABC, ESPN, FX, Freeform, National Geographic, and a dozen other Disney-owned channels.
Carrier disputes often occur when network owners like Disney renegotiate contracts with service providers like Charter. Disney is demanding higher fees, while Charter is unwilling to pay them, which is why Disney has employed a blackout strategy as part of its negotiation tactics.
Charter argues that Disney is asking for “excessive fee hikes” and wants customers to “pay for channels they don’t want.” Disney, on the other hand, has not fully engaged in the fight, telling several outlets that it is demanding “fair rates and terms… market-driven.”
Channel bundling is a common practice. Many people want ESPN, not everyone wants National Geographic, and supporting Disney in offering its programming in a more extensive suite could help.
However, perhaps more importantly, Disney’s stock has fallen, and its TV profits are declining. Striking a deal with the second-largest cable TV provider could be a meaningful opportunity to increase revenue, so it’s not surprising that Disney is working hard to raise its rates.
It remains to be seen how far this dispute will go. In 2021, Disney pulled the plug on YouTube TV after failing to reach a deal on time, and in 2022, Disney also dropped Dish and Sling TV for the same reason. Last year’s Dish blackout lasted for a couple of days, and the YouTube TV dispute was resolved after just one day.