The Walt Disney Company (NYSE:DIS) and Charter Communications, Inc. (NASDAQ:CHTR) have resolved their week-long dispute over the renewal of Disney's cable networks on Charter's systems, according to company statements.
The new agreement allows Disney networks like ESPN and ABC to return to Charter's cable service.
It also grants Charter the flexibility to drop several Disney channels while expanding the distribution of Disney's streaming services.
The deal is seen as groundbreaking in the media sector, as it allows Charter to offer a range of video packages based on customer preferences, a significant departure from the traditional bundling approach.
Under the terms, Disney will make its ad-supported version of Disney+ available to as many as 9.5 million Charter subscribers.
Charter will also offer Disney's direct-to-consumer services, including Disney+, Hulu, and ESPN+, for purchase at retail rates.
The agreement comes after Disney pulled major networks from Charter's systems earlier this month, affecting markets like New York City and Los Angeles. The deal reflects the industry's evolving needs, with Disney focusing on its ad-supported Disney+ tier and Charter seeing broadband as its future main offering.