After cutting the cord on some of Disney‘s most recognizable entertainment-focused cable networks, Charter is sparking a new connection.
The cable giant and Disney have forged a new distribution deal that brings ad-supported Hulu to all of Charter’s Spectrum TV Select customers with no extra costs. In addition, Charter will restore eight Disney-owned cable networks — Disney Jr, Disney XD, Freeform, FXX, FXM, Nat Geo Wild, Nat Geo Mundo and BabyTV — to its linear Spectrum line-up. Charter had previously dropped the outlets in 2023 after complaining that Disney and other traditional media conglomerates were putting most of their content dollars into new streaming services, leaving customers paying for networks with less original fare.
The companies said the new agreement extends the multi-year deal it unveiled in 2023 “well into the future.”
The new pact means Charter will make Disney+, ESPN+, Hulu, various Disney bundle packages and the forthcoming ESPN streaming service available for purchase to its broadband-only customer base at retail rates, as well as provide TV Select customers the opportunity to upgrade to the ad-free tiers of the included streaming services.
“This extension is a true testament to our mutual confidence in this innovative model — which already is showing improvement in subscriber churn — and our commitment to work creatively together to achieve win-win outcomes for both of us and most importantly for our customers — all achieved mid-cycle and absent from any of the typical pressures from expiring agreements,” said Tom Montemagno, executive vice president of programming acquisition for Charter, in a statement.
Charter has been one of the most vocal of cable distributors in recent months, pressing longtime allies such as Disney over the value of their linear networks as more consumers leave traditional TV for streaming services. Carriage disputes have become increasingly common across the media industry, as programmers and distributors seek to keep revenue from linear TV flowing as customers jump to digital venues for their news, sports and entertainment.
Under terms of the deal, Charter and Disney will support the agreement with marketing and promotional efforts, in some cases using Disney’s popular characters and talent.
“With the addition of Hulu and the return of our full portfolio of channels, we’re pleased to expand and extend our agreement with Charter – delivering the most robust and valuable combination of linear and streaming entertainment for years to come,” said Sean Breen, executive vice president, Disney Platform Distribution, in a statement. “This agreement reflects our continued focus on leaning into the strength of Disney’s best-in-class programming across every genre and platform – and our shared commitment with Charter to building innovative, consumer-focused distribution models that drive value across the board.”