The Walt Disney Company (NYSE:DIS) and Charter Communications, Inc. (NASDAQ:CHTR) have reached a deal that will see popular channels including ESPN and ABC returned to Charter’s nearly 15 million cable subscribers following a blackout on the evening of August 31 that took effect when negotiations between the parties broke down.
The deal was reached ahead of the National Football League's first Monday Night Football match of the season between the New York Jets and the Buffalo Bills, which is airing on Disney’s ESPN.
Per the agreement, of which the financial details were not disclosed, consumers who purchase Charter’s Spectrum TV Select package will have access to the Disney+ Basic ad-supported offering.
ESPN+ will be provided to Spectrum TV Select Plus subscribers, who will also gain access to ESPN’s flagship direct-to-consumer (DTC) service when it launches.
Other Disney-owned channels on Spectrum will include the ABC-owned television stations, Disney Channel, FX and the Nat Geo Channel but Baby TV, Disney Junior, Disney XD, Freeform, FXM, FXX, Nat Geo Wild and Nat Geo Mundo will no longer be included in Spectrum TV video packages, the two companies said Monday.
Charter will offer Disney’s DTC services to its customers at retail rates, including Disney+, Hulu, and ESPN+.
“This deal recognizes both the continued value of linear television and the growing popularity of streaming services while addressing the evolving needs of our consumers,” Disney CEO Bob Iger and Charter CEO Chris Winfrey said in a joint statement.
The plans are set to roll out during the third quarter, CNBC reported.
Disney shares had added 0.8% at US$82.20 on the news, while Charter stock had gained 3.6% at US$437.80.
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