Charter Communications, the parent company of Spectrum, is currently in a dispute with Disney over the fees it pays Disney to carry Disney channels, which includes ESPN, on Spectrum TV. Both companies have taken firm stances in the negotiations, leading to a temporary blackout of ESPN and all other Disney channels on Spectrum TV.
When did Spectrum lose ESPN? On September 1, 2023, all Disney channels, including ESPN, went dark on Spectrum. ESPN was broadcasting the U.S. Open live and went off the air during the event. Approximately 15 million Spectrum subscribers continue to be affected.
In a stable technological landscape with consistent consumer behavior, the timing of these negotiations would be less critical. However, the current talks have become a pivotal moment in determining how to monetize content consumption. As traditional linear TV services like Spectrum face increasing competition from on-demand streaming platforms such as Netflix and Hulu (partly owned by Disney), the question arises: Do content creators still require linear TV providers, and if so, how should the relationship evolve?
The dynamics of the industry are such that in the past five years, linear video providers like Spectrum have lost almost 25 million customers and this represents nearly one quarter of their total. Part of the reason people are leaving linear TV, or “cable TV” is that content providers are removing their best content from linear video platforms like Spectrum TV and packaging it directly to consumers in the form of revenue-generating apps and streaming platforms of their own. Consumers are paying for streaming apps because they have access to quality content and can control when and how they watch it.
Charter reports that in 2023 it will pay Disney $2.2 billion for the right to carry Disney content. With an investment of this magnitude the ask from Charter includes free access to Disney’s streaming platforms for Spectrum broadband customers. Having access to Disney’s streaming apps included in a Spectrum package would be a large incentive for subscribers.
Cable companies like Spectrum earn roughly 75% of their income from advertising. As content becomes more expensive for Spectrum to carry it must raise ad rates.
The financial burden on Spectrum for carrying specific channels, such as ESPN is intensifying. The timing is particularly unfortunate for customers, coinciding with the onset of the fall football season and the Major League Baseball playoffs, among other key sporting events./
Charter Communications, which owns Spectrum, and Disney, which owns ESPN, are negotiating a new contract. For now, ESPN is blacked out on Spectrum TV.
Pulling off this hack will require some serious focus prior to game day but you've got the playbook to make it happen. You're already shelling out for Spectrum TV, so why not maximize your ROI? The game plan is simple: target the games you don't want to miss and align them with free trial periods from streaming services that feature ESPN. This way, you can catch all the action-packed moments without taking a hit to your wallet. It's like getting a front-row seat to the games you love, for free or next to nothing. But you absolutely must watch the clock.
ESPN is available on Hulu, Vidgo, DIRECTV STREAM, YouTube TV, Sling TV, and fubo. If you’re new to these, it will require setting up a new account for the free trial. You may need to opt out of marketing emails unless you want to see what you’ll be offered after you don’t sign up after a free trial. Your choice.
Some free trials require giving a method of payment even though you won’t be charged until the free trial ends.
You aren’t staying long so be strategic with your exit strategy. You can set an alarm or calendar alert to get out before you get charged. When you cancel, you have to do it within your new account login and not by commenting on social media.
As a new customer you can check out these options:
We’re not seeing a free trial period on Sling’s page right now but go ahead and check in case one gets added today.
Overview: Cable TV providers like Charter Communications, the parent company of Spectrum, find themselves in a precarious position due to the escalating costs of programming. For publicly traded telecom companies such as Charter, the challenge lies in maintaining a delicate equilibrium between delivering robust shareholder value—reflected in a healthy stock price—and mitigating public backlash and significant customer attrition when implementing price hikes. The financial burden on Spectrum for carrying specific channels, such as ESPN (owned by Disney), is intensifying. When existing contracts reach their expiration, negotiations can become protracted, leading to temporary channel blackouts until a new agreement or extension is reached. This is currently the situation with ESPN on Spectrum TV, and the timing is particularly unfortunate for customers, coinciding with the onset of the fall football season and the Major League Baseball playoffs, among other key sporting events.
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