- Disney Blocked Charter Communications' TV Networks cable customers in a pricing dispute.
- Disney said Charter's offering was consistent with the current market.
- Charter said the cable TV model cable was faulty and called on Disney to join. by changing it.
Walt Disney (DIS) on Friday halted its television programming on Charter Communications' (CHTR) Spectrum cable system after a dispute over rates.
Shares of both companies fell when Disney blocked ABC, ESPN and other networks for Charter's 14.7 million subscribers, including some in New York and Los Angeles markets. when the two parties could not agree on a contract renewal.
Disney said it has agreements with pay-TV providers of all types and sizes across the country, and that the rates and terms it seeks “are determined by the market.” The company added that it was committed to reaching a mutually agreed resolution with Charter.
However, Charter argued that the current cable TV model is broken, saying the industry has insisted on “unsustainable price hikes” and forced customers to pay for products that they don't want and they can't afford. CEO Christopher Winfrey added that this was not “a typical transportation dispute”.
He explained that due to the increase in streaming services such as Disney's Disney', cable customers are getting lower quality programming and have to pay extra. for premium content.
Charter indicated that He would accept Disney's tariff proposal if certain changes were passed that would “transform the industry and help restore growth to our mutual video business,” including giving consumers more flexibility.
Disney shares fell d& #39;about 2.5% on Thursday. Shares of Charter and other major media companies also lost ground.
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