In a surprise move, The Walt Disney Co. and the cable giant Charter have inked a new deal that expands their landmark 2023 carriage agreement to bring Hulu to Spectrum TV customers, while returning eight linear cable channels that had been pulled from its lineup.
Back in 2023, Disney’s channels (including ESPN and ABC) went dark for Spectrum customers as the companies were unable to come to terms on a carriage deal. Spectrum wanted to transform its video offering to bundle in streaming services, while Disney was seeking to protect the reach and fees of its core channels, including ESPN.
The deal they ended up signing saw Disney+ and ESPN+ included in Spectrum Select tiers, but it also saw a number of cable channels, including Freeform, FXX, Nat Geo Wild, Disney Junior and others pulled from Spectrum lineups.
The new deal brings those channels back (eight, in total), to Spectrum TV lineups, while also making Hulu available to subscribers via its ad-supported tier later this summer, as well as access to ESPN’s forthcoming streaming service in the fall.
While the terms of the deal were not disclosed, the companies said that the return of the channels, as well as Hulu, “expand Spectrum’s entertainment offering and create meaningful value for both companies by boosting advertising reach and strengthening audience engagement across platforms.”
In other words, the companies may have decided to trade off cable subscriber fees for the added reach of linear TV, which can be monetized through advertising. The new agreement also “extends the multi-year deal well into the future.”
“I think if we’re learning anything in this moment, it is that we need to remain flexible, that these models are changing rapidly, that keeping up with technology and the consumer means we have to stay flexible and agile,” says Dana Walden, co-chairman of Disney Entertainment, told The Hollywood Reporter shortly after the deal was announced.
The deal will be supported by marketing efforts, with Charter also selling Disney’s streaming services to its broadband subscribers, and offering upgrades to ad-free tiers to its Spectrum TV customers.
“We began this journey to transform the video proposition for consumers with Disney, so it is befitting that this new agreement and the doubling down on our strategy continues with them,” said Tom Montemagno, executive VP of programming acquisition for Charter. “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.”
“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,” adds Sean Breen, executive VP of Disney Platform Distribution. “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.”
