Spectrum vs. Disney -- A Development Tracking Thread

#1
BruisedOrange

BruisedOrange

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#1
This thread is not for ranting or how to gain access to games [we already have a good thread covering that], but for posting new developments in the negotiations, and HOPEFULLY getting some knowledgeable input from VFL insiders who understand the industry issues as this plays out.

To this outsider, it appears Disney is trying to score one last contract on the old, traditional business model, while Charter Communications (Spectrum) is trying to position itself as an early adapter to the new landscape of entertainment access. If you know better, please correct me.

I found two articles that hopefully present each side's negotiating stance (with lots of soft appeal to consumer support). Informed comments, posting fresher articles, and posting other industry perspectives are the goal here.

corporate.charter.com

Charter Communications Provides Update on Negotiations With The Walt Disney Company | Charter Communications

At the September 1, 2023 Investor Webcast, Charter’s CEO, CFO and President of Product and Technology Presented the Company’s Vision for Evolving the Video Business, and Desire for The Walt Disney Company to Join the Company in Leading the Industry Towards a Customer-Centric Business Model Key...
corporate.charter.com

deadline.com

Labor Day Weekend Has Been “A Frustrating One For Millions Of Spectrum Cable Subscribers,” Disney Says In Latest Salvo, Adding Plug For Hulu TV Service And Rival Alternatives – Update

UPDATED with Monday statement. Disney put a finer point on its Sunday message to Spectrum customers, urging them specifically to switch to Hulu + Live TV or even rival streaming TV bundles like You…
deadline.com deadline.com
 
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#5
#5
I don't have a dog in the hunt of 2 giant corporations going after each other but it does appear to me that Disney has the upper hand. Folks will get their Disney channels somewhere thus they won't lose viewers but Spectrum could very well lose subs (subscribers). Folks will possibly drop Spectrum and move to Sling TV or another option. As a customer, we decide what services (channels) we want, then it's up to the cable company to provide them to us at a price we're willing to pay. If they don't then they'll lose our business.

I expect this to get settled by this weekend and for Disney to win. A few months later Spectrum will do what they've been doing: raise their prices.
 
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#8
#8
You would think with the latest missed earnings reports and other cost cutting measures that Disney would be doing anything to keep.customers rather than run them off.

I still say the first steaming service that can put together a college football package like the NFL Sunday Ticket will be making crazy mad amounts of cash.
 
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#9
#9
Sea Ray said:
I don't have a dog in the hunt of 2 giant corporations going after each other [...]
Click to expand...
Sea Ray, I quoted you ONLY to state that I was already writing this before you posted, and I'm not "jumping into your boat" or arguing against your post. I'm only posting this to make my own points (that may deserve their own push back).
--------------------------
For how many decades have we all asked, "Why am I having to pay for channels I never watch? Why can't I just pay for what I want?"

Well, this appears to be (IIUC) that watershed moment in history. Spectrum is now taking up that cause and going up against the Big Princess content provider.

Here's another aspect we may want to consider:
Yes, I can subscribe to alternative conduits, like YouTube and various apps... BUT I'm not only paying them money, I'm giving them access to everything else I watch, read, or do online or with my smartphone. Smart TVs are the equivalent of smartphones--and that includes surveillance--er, I mean, data gathering.

So yes, you get to watch a 4 hour game, but they get to watch you 24/7 thereafter. Fair trade? For how long? And in whose hands?

For the big corporations, this isn't about this year's money as much as it's about risk management of tomorrow's money--and in today's technology, risk is managed by controlling us, the users.

The point I'm trying to make is not to promote one or another conspiracy theory, but just to say we all have skin in this contest, as do our children and grandchildren. The fewer players in this game... the fewer control points in the supply chain... the fewer options we will have for any kind of information. Other than information about us, going out.
 
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#12
#12
BruisedOrange said:
To this outsider, it appears Disney is trying to score one last contract on the old, traditional business model, while Charter Communications (Spectrum) is trying to position itself as an early adapter to the new landscape of entertainment access. If you know better, please correct me.
Click to expand...
Agree with your comments, just understand that for Spectrum if they pay ESPN keeps customers happy, if they pay, they lose customers who don’t care about sports because they will be forced to raise praises causing more cord cutting.

This is absolutely bigger for both of these than a small carriage fee increase. Spectrum knows Disney doesn’t care if they carry ESPN or not. Disney cannot sell ESPN by itself today due to contractual agreements. To get the right to do that they have to break the back of all of those carrying ESPN. This is the long-term goal. I had a Disney insider tell me 3.5 years ago that they expect the cable/satellite companies to be infrastructure providers only and not providers of entertainment in the 5–7-year timeframe.

OrangeTsar said:
Don’t blame Spectrum for refusing to pay the ransom, call Disney, the ones holding the hostage 😳
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If Spectrum loses this battle which they will in some form, eventually it will affect every carrier of ESPN.

Sea Ray said:
I don't have a dog in the hunt of 2 giant corporations going after each other but it does appear to me that Disney has the upper hand. Folks will get their Disney channels somewhere thus they won't lose viewers but Spectrum could very well lose subs (subscribers). Folks will possibly drop Spectrum and move to Sling TV or another option. As a customer, we decide what services (channels) we want, then it's up to the cable company to provide them to us at a price we're willing to pay. If they don't then they'll lose our business.

I expect this to get settled by this weekend and for Disney to win. A few months later Spectrum will do what they've been doing: raise their prices.
Click to expand...
I bet it will be weeks. There are many stations which have not returned to providers over carriage fee disputes and some have been going on for an extended period of time.

knoxvol52 said:
I blame both Disney for hacking price up and Spectrum knowing the contract was running out should have had this resolved 6-12 months ago....
Click to expand...

You assume that Disney has been negotiating in good faith and wants this settled. With the money they are losing, I think you are making a bad assumption.
 
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#14
#14
OrangeTsar said:
Don’t blame Spectrum for refusing to pay the ransom, call Disney, the ones holding the hostage 😳
Click to expand...
That may be correct, but the Spectrum/ Comcast conglomerates haves basically outlived their usefulness. All of the content companies will eventually sell directly to consumers. We just signed up for Fubo tv and it is cheaper than cable and has way more sports if you get the $5.99 sports package.

ESPN is going towards direct to consumer and they control most of the most valuable live rights. The cable companies are just surviving through bundling broadband. If it weren’t for that, they would already be out of business.
 
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#16
#16
But, for this to happen at the start of football is the worst negotiating tool they could have tried. Viewers like us are gonna drop them like flies. Hence- "Cannot take your call"
 
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#19
#19
IndianaVol said:
You would think with the latest missed earnings reports and other cost cutting measures that Disney would be doing anything to keep.customers rather than run them off.

I still say the first steaming service that can put together a college football package like the NFL Sunday Ticket will be making crazy mad amounts of cash.
Click to expand...
Disney isn't losing customers because of this. Spectrum is. They know their customers will just find (pay for) other ways to watch their channels. They hold all the leverage.
 
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#20
#20
Volanooga2521 said:
That may be correct, but the Spectrum/ Comcast conglomerates haves basically outlived their usefulness. All of the content companies will eventually sell directly to consumers. We just signed up for Fubo tv and it is cheaper than cable and has way more sports if you get the $5.99 sports package.

ESPN is going towards direct to consumer and they control most of the most valuable live rights. The cable companies are just surviving through bundling broadband. If it weren’t for that, they would already be out of business.
Click to expand...
But what’s preventing the same thing from happening to Fubo or YouTube in a year or twos time when the actual content owner wants more money? In this instance is Fubo and YouTube not just the next Comcast/spectrum/charter/direct tv?

This isn’t just going to be an ESPN/Disney thing in the future either right? Currently there’s disputes with ABC and CBS going on with direct tv and dish if I understand directly. I’m guessing everyone with their own streaming service could be pulling stuff like the before long.
 
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#21
#21
Spectrum would pay the 2.x billion that disney wants but Spectrum wanted Disney+ included and Disney said no
Look at it how some carriers offer Netflix,HBOMax etc as part of being a customer. That's what Spectrum wants to do
Disney is bleeding money also.
Spectrum wants to get away from the way cable is done currently which actually for the consumer is a good thing
Spectrum wants to be more of an ISP providing internet and mobile services.
ESPN will likely be direct to consumer soon and possibly through Apple.

Both companies are out to maximize their profits but in this case what Spectrum wants also benefits the consumer.
What Spectrum is going through, YoutubeTV will be doing the same when it's contract time
 
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#22
#22
Volanooga2521 said:
That may be correct, but the Spectrum/ Comcast conglomerates haves basically outlived their usefulness. All of the content companies will eventually sell directly to consumers. We just signed up for Fubo tv and it is cheaper than cable and has way more sports if you get the $5.99 sports package.

ESPN is going towards direct to consumer and they control most of the most valuable live rights. The cable companies are just surviving through bundling broadband. If it weren’t for that, they would already be out of business.
Click to expand...
From reading other places and the investors slides. It appears Spectrum wants to get out of the cable tv business as it is today.
They've already made a step towards this a few years ago buy pushing people towards using the Spectrum App instead of offering cableboxes
 
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#23
#23
If everyone dumps charter and moves to another provider, then I would expect a rate increase on internet service. Welcome to another rate increase. You now pay more for your new service and your internet. It may not happen immediately, but I would expect it to happen. I miss turning on my television, bending my rabbit ears, and switching between my 3 channels and seeing football without the fees haha.
 
#24
#24
37620VOL said:
But Disney pays, SEC, who pays UT ... so Spectrum needs to pony up.

Huep & Co will need $$$ after running the table the next 3 years.
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As an employee of one of the aforementioned companies, if Spectrum gives in to the exorbitant price hike Disney is asking for, you won’t have Spectrum anyway. The price hike for monthly fees will blow any other price hike you’ve ever seen, completely out of the water.
 
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#25
#25
VolJarhead said:
If everyone dumps charter and moves to another provider, then I would expect a rate increase on internet service. Welcome to another rate increase. You now pay more for your new service and your internet. It may not happen immediately, but I would expect it to happen. I miss turning on my television, bending my rabbit ears, and switching between my 3 channels and seeing football without the fees haha.
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Except we got 3 or 4 Tennessee games a year in those days. Getting every game (except one) started with cable. Even then this game would have been would have been PPV and like $50.
 
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