ESPN goes dark on Spectrum cable as Disney and Charter feud over rates – just as college football season kicks off
ESPN and other Disney-owned channels have been silent on Charter’s Spectrum cable service as the two companies intensify their dispute over fees.
Disney pulled ESPN, ABC and its other cable channels from Spectrum Thursday night, on the eve of college football’s first big games and in the midst of tennis coverage of the US Open.
Spectrum serves huge markets, including New York and Los Angeles, and has some 32 million customers, many of whom are now outraged by the loss of sports coverage.
At the time Disney pulled the plug, ESPN was covering a college football game between Florida and No. 14 Utah, while ESPN2 was showing the US Open tennis tournament.
“We are deeply disappointed for our fans and viewers across the country that Spectrum and Charter were unable to resolve their dispute with Disney, resulting in a loss of ESPN coverage of Thursday night’s games,” USTA spokesperson Chris Widmaier said in a statement. declaration.
Disney pulled ESPN, ABC and its other cable channels from Spectrum Thursday night over a rate dispute with Charter. Disney CEO Bob Iger is seen above
At the time Disney pulled the plug, ESPN was covering a college football game between Florida and No. 14 Utah, whose quarterback Bryson Barnes is seen above
The college football season kicks off in earnest on Saturday, with ESPN airing four major games: No. 20 Oklahoma vs. Arkansas State, Auburn vs. UMass, No. 23 Texas A&M vs. New Mexico, and UCLA vs. Coastal Carolina.
ABC is scheduled for No. 12 Tennessee vs. Virginia, No. 10 Washington vs. Boise State, and No. 21 North Carolina vs. South Carolina.
ESPN’s “College GameDay” has long reigned as the preeminent Saturday morning pregame show, but it faces new competition from Fox and its newcomer “Big Noon Kickoff” and risks losing fans if the dispute continues.
Other cities where Charter Spectrum is the main cable operator are Dallas/Fort Worth; Orlando, Florida; Tampa, Florida; Kansas City, Missouri; St Louis; Cleveland; Cincinnati; Milwaukee; and Vegas.
The dispute is mainly about sports network ESPN, which has no streaming service and is a major cable attraction, despite losing subscribers every year due to cable cutting.
ESPN traditionally has the highest carrier rates for cable companies. According to S&P Global, Disney will receive an average of $2.20 billion a year from transportation through Charter Spectrum under the 2019 transportation agreement.
Charter displayed an on-screen message urging viewers to contact Disney. “We offered Disney a fair deal, but they are demanding an outrageous raise,” it said.
“Rising programming costs are the biggest contributor to higher cable TV prices, and we’re fighting to keep up with the programming rates imposed on us by companies like Disney.”
Spectrum serves huge markets, including New York and Los Angeles, and has some 32 million customers, many of whom are now outraged by the loss of sports coverage
The US Open second-round match between Carlos Alcaraz (left) and Lloyd Harris (right) was cut short for Spectrum viewers as Disney shut down its channels
Disney fired back in a statement to DailyMail.com, saying, “Charter has declined to enter into a new agreement with us that reflects market-based terms.”
“Contrary to their claims, we have provided Charter with the most favorable terms in terms of rates, distribution, packaging, advertising and more,” the statement said.
Charter said Friday that ESPN is the “lynchpin” of his video business. Shares fell 3.6 percent, while Disney lost 2.4 percent.
“Disney may have more to lose than Charter,” said Rosenblatt Securities, who predicted it could lose billions in profits each year from its traditional TV business if a deal isn’t reached.
“A protracted battle with Charter could accelerate Disney’s DTC (direct-to-consumer plans).”
Analysts have said Disney is reluctant to quickly roll out a DTC plan for ESPN because it needs money from its earnings engine to fund the money-losing streaming service Disney+.
CEO Bob Iger said in July that Disney wants to find a strategic partner for ESPN to form a joint venture or buy a stake to bring it directly to consumers.
“Charter and Disney are ideal partners to create hybrid linear TV and a direct-to-consumer model,” Richard DiGeronimo, Charter’s president for products and technology, said Friday.
The company, which serves more than 32 million customers in 41 states, pays the entertainment giant about $2.2 billion in annual programming fees.