Disney, Spectrum dispute blacks out more than a dozen channels: What we know

Business James Powel 02/09/2023

Spectrum Cable customers had a rude awakening Thursday night when instead of tuning into a marquee matchup between the Florida Gators and No. 14 Utah Utes on ESPN they were greeted with a screen alerting them that the channel had been removed.

The black out was not limited to the game but to all Disney-owned channels as the company pulled channels from the carrier as a part of ongoing negotiations over carriage fees for the Mouse's suite of networks.

Here is what we know about the negotiations, the channels that are affected and when they might return for Spectrum customers.

Why are Disney channels blacked out?

Charter Communications, the parent company of Spectrum Cable, and Disney are currently in negotiations over access fees.

According to a presentation provided to Charter investors prior to a Friday conference call, Disney is seeking a long-term deal that would add the channels into packages where they are not currently. The presentation described the offering as, "too expensive" and that it doesn't, "meet consumer needs."

“We had to draw a line in the sand on [the customer's] behalf,” Charter CEO Chris Winfrey said on the conference call. “The video ecosystem is broken.”

This comes as Disney's streaming service continues to lose the company money, with Disney+ operating at a reported $512 million in the red, in the company's most recently closed fiscal quarter.

Week 1, no show:ESPN goes dark for Spectrum cable subscribers amid Disney-Charter Communications dispute

When will Disney's channels return to Spectrum?

This is not the first time Disney has pulled its channels from a carrier.

In 2021 a similar scenario happened when the company pulled its channels from YouTubeTV during access fee negotiations with parent company Google. The channels were removed from the streaming service for days prior to an agreement being reached.

It is too early to tell if a similar resolution will be found with Spectrum.

What does Spectrum say about the blackout?

Spectrum released the following statement:

"The Walt Disney Company has removed their programming from Spectrum which creates hardship for our customers. We offered Disney a fair deal, yet they are demanding an excessive increase.

They also want to limit our ability to provide greater customer choice in programming packages forcing you to take and pay for channels you may not want.

Spectrum is on your side and fighting to keep costs down while protecting and maximizing customer choice.

The rising cost of programming is the single greatest factor in higher cable TV prices, and we are fighting hard to hold the line on programming rates imposed on us by companies like Disney.

We apologize for the inconvenience.

We understand how important it is to be able to access your programming content and have solutions for you."

What does Disney say about the blackout?

Disney also released a statement, via the Hollywood Reporter:

“We’ve been in ongoing negotiations with Charter Communications for some time and have not yet agreed to a new market-based agreement. As a result, their Spectrum TV subscribers no longer have access to our unrivaled portfolio of live sporting events and news coverage plus kids, family and general entertainment programming from the ABC Owned Television Stations, the ESPN networks, the Disney-branded channels, Freeform, the FX networks and the National Geographic channels.

"Disney Entertainment has successful deals in place with pay TV providers of all types and sizes across the country, and the rates and terms we are seeking in this renewal are driven by the marketplace. We’re committed to reaching a mutually agreed upon resolution with Charter and we urge them to work with us to minimize the disruption to their customers.”

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Disney, Spectrum dispute blacks out more than a dozen channels: What we know

Why are Disney channels blacked out?

When will Disney's channels return to Spectrum?

What does Spectrum say about the blackout?

What does Disney say about the blackout?

What channels does Disney operate?

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