Disney and Charter didn’t sign a multiyear extension before the deadline but the sides continue to talk to reach a deal. That suggests that both sides hope to avoid a blackout of ESPN and other Disney channels. Disney is looking to launch the ACC Network on Charter and is asking to raise ESPN’s carriage fee while also hoping to add to the amount of live games it can place on ESPN+, its sports streaming service, sources say.
Disney and Charter are still discussing a new multiyear carriage agreement, blowing past Friday’s 12:01 a.m. deadline, as the two sides try to reach a deal, according to people familiar with the matter. The sides are making progress on a deal and want to avoid a blackout of popular networks including ESPN, ABC and The Disney Channel, said the people, who asked not to be named because the discussions are private
The main sticking points between Charter and Disney have been issues related to ESPN, the most expensive network in the pay-TV bundle, said the people. One issue has been ESPN’s proposed pricing for the ACC Network, a new cable channel that will broadcast collegiate sports for teams in the conference, about 40 percent of Charter’s footprint overlaps with ACC schools. Another hurdle is how much flexibility Charter is willing to give ESPN+, Disney’s $4.99 per month streaming product. The two sides are discussing potentially including ESPN+ as a new network that Charter consumers can access on their set-top box, the people said.
Disney plans to bundle ESPN+ with Hulu and Disney+ when it launches in November and would like to strengthen the sports streaming service while not eroding the value of ESPN, which commands about $10 for every pay-TV subscriber. Typically, Disney will ask cable operators to distribute ESPN to at least 80 percent of their subscriber footprints, according to people familiar with the matter.
Link
https://www.cnbc.com/2019/08/02/disney-charter-still-talking-on-new-carriage-agreement.html
