Disney doubles-down on Spectrum dispute with call to sign-up for Hulu
Published 3:29 am Tuesday, September 5, 2023
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Disney (DIS) – Get Free Report shares edged higher in pre-market trading after the media and entertainment group urged customers of Spectrum cable to switch to its Hulu streaming platform, suggesting the its dispute over carriage fees with parent Charter Communications (CHTR) – Get Free Report remains a long way from resolution.
Disney removed ESPN and ABC from Spectrum’s cable service late last week, depriving its 14.7 million subscribers access to the start of the college football season as well as early and weekend rounds of the U.S. Open.
Disney, which is looking to renegotiate the annual $2.2 billion in fees Spectrum pays for its programming, asked the cable company’s customers to sign-up for Hulu, the streaming service it owns along with Comcast (CMCSA) – Get Free Report.
“Despite the ongoing dispute, consumers have many other choices—such as Hulu + Live TV—that allow them to enjoy the great programming for which Disney Entertainment is known,” Disney said. “There’s no contract, no cable box, and no wait time to subscribe.”
Charter, for its part, says Disney wants to tie it into a long-term deal, with higher rates and limited flexibility, at a time when traditional cable customers are declining and ad sales are slowing.
“[Disney] also wants to require customers to pay twice to get content apps with the linear video they have already paid for,’ Charter said. “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.”
Disney shares, which hit a three-year low on Friday, were marked 0.07% higher in pre-market trading to indicate an opening bell price of $81.70 each. Charter Communications shares slipped 0.3% to $421.02 each.
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