Disney has prevented its channels from reaching nearly 15 million customers in the United States by blacking out on Charter Spectrum services. A blackout means that viewers in major markets like New York and Los Angeles can’t access Disney-owned channels such as ABC, ESPN, FX, Freeform, National Geographic, and a dozen other Disney-owned channels.
Carriage disputes happen when network owners like Disney renegotiate contracts with service providers like Charter. Disney is demanding higher fees, which Charter doesn’t want to pay, hence Disney’s strategy to blackout its programming.
Charter claims that Disney is demanding “excessive growth in fees” and forcing customers to pay for channels they don’t want. Disney hasn’t entirely fought back against that claim; it has told several outlets that it is demanding “rates and terms that are consistent with the market” in revenue negotiations.
Channel bundling is a common practice. Many people want ESPN, not everyone wants National Geographic, and supporting Disney’s programming across a wide suite might help the TV giant make up for losses elsewhere.
But perhaps most important here is that Disney’s stock has taken a hit and its TV profit is dwindling. Re-negotiating carriage deals with the second-largest cable TV provider is an opportunity to increase revenue, so it’s no surprise that Disney is working hard to raise its rates.
This will likely come as no surprise either. In 2021, Disney pulled the plug on YouTube TV after failing to reach an agreement on time, and in 2022, it shut down Dish and Sling TV for the same reason. Last year’s Dish blackout lasted a couple of days, and the YouTube TV dispute was resolved just a day after it started.