Charter-Disney Feud Ends, ESPN, ABC Restored To 15M Households

The blackout fight between cable giant Charter Communications and Disney is over.

Disney and Charter Communications have reached an agreement that will restore popular channels including ESPN and ABC to the cable operator’s nearly 15 million subscribers, ending a blackout that lasted for more than a week.

The agreement comes just hours before ESPN’s coverage of the first “Monday Night Football” game of the season—a highly anticipated matchup between the New York Jets and Buffalo Bills.

Under the terms of the agreement, Charter has agreed to higher rates for Disney’s channels in return for being able to provide the Disney+ and ESPN+ streaming services to its pay-TV subscribers.

Under the terms of the agreement, Charter has agreed to higher rates for Disney’s channels in return for being able to provide the Disney+ and ESPN+ streaming services to its pay-TV subscribers. according to the Wall Street Journal.

Specifically, the ad-supported version of Disney+ will be included in Spectrum’s TV Select video packages, which are among the cable operator’s most popular. The ad-supported ESPN+ will be available to Charter customers who subscribe to a tier that includes other sports channels such as regional sports networks. 

In addition, when Disney releases its much-anticipated direct-to-consumer version of its ESPN cable channel—which is separate from ESPN+—Charter pay-TV customers will be able to get it as well.

The fight between Disney and Charter was being closely watched by the rest of the industry, because the dispute wasn’t primarily about money. 

Reuters reports if a deal was not reached before the kickoff of "Monday Night Football", Spectrum subscribers in New York City and Los Angeles would have been unable to watch the game between Buffalo Bills and the New York Jets.

Charter pays Disney more than $2.2 billion annually for the right to distribute the media giant's channels to subscribers. Companies like Charter say rising distribution fees are forcing cable companies to increase prices, causing consumers to leave.

Disney counts on fees companies such as Charter pay to partly cover rising programming costs, including the rights to air sports such as the NFL and NBA.

It wants to keep as many cable subscribers as possible while it prepares to offer ESPN directly to consumers on an app.