Sat in our New York office last week, my colleagues and I tried to tune the TV on the wall to show the US Open Tennis Championships.
We met a blank screen with a message from Charter, saying Disney had removed its programming.
The two communications giants are locked in an ugly battle over carriage fees, or the payments Charter sends to Disney so that its subscribers can access channels such as ESPN.
Disney is upping the amount it expects per Charter subscriber, and Charter is refusing to meet Disney’s demands. Cue blackouts for millions of subscribers.
While disputes over carriage fees aren’t uncommon, this one arrives at a time of real disruption in the cable and streaming ecosystem.
Charter says cable TV is broken and that cable customers are being asked to pay more and more for a product that’s getting worse and worse. It says it’s willing to walk away from the business entirely.
It may be a negotiating tactic, but it reveals that even America’s second-biggest cable company thinks cable TV sucks.
How this plays out has huge implications for Disney, for media companies including NBCU and Warner Bros. Discovery, for sports rights, and for the billionaires investing in sports teams.
Wondering who wins? Tech giants such as Apple and Amazon. |