Disney, Charter Both Speak Out About Carriage Dispute Ahead of First NFL Weekend, But Little Progress Being Made

Is this the final straw for cable? That’s what talking heads around the entertainment industry are asking themselves this week, as the carriage dispute between Disney and Charter, whose Spectrum cable plans service 14.7 million customers in the United States.

The dispute has blacked out 19 Disney-owned cable channels for Spectrum customers, as well as seven ABC owned-and-operated stations in as many markets. Charter CEO Chris Winfrey took the opportunity to speak about the dispute at the Goldman Sachs Communications and Technology Conference this week. In his statements, he explained why part of his new proposal to Disney was that Spectrum customers would be granted access to Disney streaming platforms like Disney+ and Hulu at no extra cost.

“What’s taking place is those very rich linear fees that our customers are paying to the programmers are then being funneled into direct-to-consumer products not available to them unless they pay twice,” Winfrey said. “And when you take a look back and say is that really fair and is that sustainable, we’ve always thought about the video business as being an asset to our broadband connectivity business. And I think it’s on the verge of flipping to where it’s becoming a liability.”

Winfrey also doubled down on his stance that this dispute could radically change the way that the company offers video services. Instead of exiting cable altogether, however, he outlined that Spectrum could begin offering less expensive cable packages with no sports channels whatsoever.

“If you had an environment where we no longer carry Disney content, which is becoming more and more of a potential reality, you have to say, well, what other additional sports content would you renew,” he said. “At that point, there’s very little. And so you’d have a smaller base of customers, but you’d have a smaller package with a much better price and it would be a package of general entertainment content that customers actually wanted, watched, and valued.”

Disney took the opportunity to release another statement, essentially laying the blame for the dispute at Charter’s feet but declaring they were ready to start talking again any time the cable provider decided to come back to the negotiating table.

“The question for Charter is clear: Do you care about your subscribers and what they’re telling you they want—or not? Disney stands ready to resolve this dispute and do what’s in the best interest of Charter’s customers,” the statement reads.

The dispute has already led to legal action against Charter, in the form of a class-action lawsuit brought by Florida customers who claim that being charged their full bill without receiving the full allotment of channels they’re paying for is a violation of state law. Many users who call Spectrum about the dispute have received a $15 credit off their bill.

Despite the added pressure of another college football weekend coming up, plus the first “Monday Night Football” game of the season on ESPN, neither side appears willing to budge. Consumers are the ones losing out thanks to the dispute, but it doesn’t look like a resolution is in the immediate future.