• Loading stock data...
Friday, April 4, 2025
Nominations Are Open for Front Office Sports Honors! Submit Now

What’s Behind Disney’s $2.2 Billion Carriage Dispute With Charter?

  • A Charter victory could be the final nail in the coffin of the disintegrating pay TV bundle, warn industry experts.
  • The continuing blackout impacts over 14 million cable TV customers coast-to-coast in the country’s biggest TV markets.
ESPN camera operator at a basketball game.
Ron Chenoy-USA TODAY Sports

On Tuesday, ESPN and other channels owned by Disney remained dark on Charter’s Spectrum cable TV services for the fifth straight day. 

The continuing blackout impacts over 14 million cable TV customers coast-to-coast in the country’s biggest TV markets such as New York and Los Angeles. If the two sides don’t come to terms on a new carriage agreement, Disney will have to say goodbye to $2.2 billion in annual programming fees, warns Charter.

That’s more in one year than the $1.5 billion in licensing fees ESPN will pocket over a decade from Penn Entertainment to rebrand the Barstool Sportsbooks as “ESPN Bet.”

The stakes are high for both sides in this TV standoff. 

A Charter victory could be the final nail in the coffin of the disintegrating pay cable TV bundle, warn industry experts. But a win by Disney would keep the lucrative bundle alive for a few more years. Or at least until networks like ESPN are finally ready to go direct-to-consumer.

On Labor Day, Disney raised the ante by urging furious Spectrum customers to cut the cord and switch to Hulu + Live TV,, and reminding them they missed out on the return of college football and U.S. Open tennis over Labor Day weekend.  

“It can be infuriating to not be able to access the content you want,” Disney said in a statement. “Luckily, consumers have more choices today than ever before to immediately access the programming they want without a cable subscription.” 

Charter, ESPN Carriage Battle Intensifies For Football Season

Companies fail to make significant progress toward new deal
September 5, 2023

ESPN’s top on-air talent like Stephen A. Smith entered the fray to try to swing public opinion to Disney’s side.

“If you are personally affected, if you want to see ESPN for LIVE games, the US OPEN or anything else your heart desires from the sports world, you can visit this website http://keepmynetworks.com for information about where you can get it,” tweeted Smith. “Bottom Line: YOU HAVE CHOICES!!!”

But the nation’s second-largest cable operator has also come out swinging.

“We are disappointed that thus far they have insisted on unsustainable price hikes and forcing customers to take their products, even when they don’t want or can’t afford them,” said Charter in a statement. “They also want to require customers to pay twice to get content apps with the linear video they have already paid for.”

In the tit-for-tat war, Spectrum is also offering its customers a 30% discount to the Fubo streaming service for two months so they can watch ESPN. 

Carriage disputes between cable operators and programming providers happen all the time. Typically both sides talk tough — then cut a deal at the deadline. But the impasse between Charter and Disney is unusual. 

“Has the traditional TV ecosystem reached its proverbial tipping point?” asked media analyst Richard Greenfield of LightShed Partners. “If ESPN is permanently gone from Charter, there will be a massive snowball effect that is catastrophic for traditional TV companies.”

Disney will never have more leverage than it does this week: In just six days, ESPN’s “Monday Night Football” will televise Aaron Rodgers’ eagerly awaited regular season debut for the New York Jets against the Buffalo Bills. 

But Charter’s not budging in its quest to fix what it calls a “broken” cable model. That’s a sign even the biggest and best content providers like Disney don’t have as much leverage as they used to. And a signal that cable operators like Charter are ready to abandon video entirely in favor of more lucrative broadband and wireless businesses.

As Charter chief executive officer Chris Winfrey warned: “We’re on the edge of a precipice. We’re either moving forward with a new collaborative video model — or we’re moving on.” 

Tim Cook CEO of Apple

Apple Wants To Be a Force in Live Sports. Buying ESPN Could..

Historically choosy with acquisitions, Apple can kick the door down in sports.
August 18, 2023

It comes at an awkward time for Disney, which just finished slashing 7,000 in jobs and $5.5 billion in costs. ESPN is also gearing up for billion-dollar negotiations to defend its NBA media rights, which expire in 2025.

“The collateral damage could be wide-ranging from sports leagues with rights coming up for renewal, local TV station affiliates seeking material step-ups and creative talent tied to the programming investments made by linear networks,” warned MoffettNathanson analysts Michael Nathanson and Craig Moffett.

If Disney/ESPN and Warner Bros Discovery Sports/TNT can’t retain their rights during an exclusive negotiation window, the league could throw the bidding open to deep-pocketed tech giants like Amazon, Apple, and Google. 

Amazon Prime Video, in particular, is interested in landing a designated night of NBA programming similar to its 11-year, $11 billion deal with the NFL to exclusively stream “Thursday Night Football” outside of local markets.

Once NBA talks are completed, ESPN will have to pivot to expensive rights negotiations for the WWE and College Football Playoff.

ESPN referred calls to Disney, which cited its blog post on the dispute. Charter could not be reached for comment.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Mar 1, 2025; Gainesville, Florida, USA; Florida Gators guard Walter Clayton Jr. (1) and center Olivier Rioux (32) and guard Alijah Martin (15) and forward Thomas Haugh (10) huddle after the game against the Texas A&M Aggies at Exactech Arena at the Stephen C. O'Connell Center

How Florida Built a Final Four Roster With ‘Under-Recruited’ Players

“We’ve never gotten a single player because we’re the highest bidder.”
Ja Morant

Ja Morant Fined $75K for Defying NBA Warning on Finger Guns

Morant has served two suspensions in his career over brandishing firearms.

Why Sports Leagues Are Betting Big on Streaming’s Reach

The NFL is going all-in on streaming for its Christmas Day games.
Mar 31, 2025; Spokane, WA, USA; UConn Huskies guard Paige Bueckers (5) makes a heart symbol to the crowd after a Elite 8 NCAA Tournament basketball game against the USC Trojans at Spokane Arena.

Women’s Hoops Keeps Climbing: Clark’s Boom to Bueckers’s Moment

This year’s tournament has averaged 967,000 viewers.

Featured Today

Dec 27, 2024; San Jose, California, USA; San Jose Sharks center Macklin Celebrini (71) skates during warm ups before their game against the Vegas Golden Knights at SAP Center at San Jose

Macklin Celebrini and the Sharks Rookies Have Brought Good Vibes to a..

The rookie’s arrival has boosted spirits incongruously high inside the flagging franchise.
Mar 26, 2025; Indianapolis, Indiana, USA; Los Angeles Lakers forward LeBron James (23) in the first half Indiana Pacers at Gainbridge Fieldhouse.
April 1, 2025

The Creator Behind the LeBron ‘Glazing’ Trend Sweeping TikTok

FOS spoke to TikTok user OkaySpade who made the original song.
Mar 22, 2025; Providence, RI, USA; McNeese State Cowboys manager Amir Khan before a second round men’s NCAA Tournament game against the Purdue Boilermakers at Amica Mutual Pavilion
April 1, 2025

Inside the 24-Hour NIL March Madness Deals

Some of the most viral partnerships come together overnight.
Seattle Kraken
April 1, 2025

Samantha Holloway Is Seattle’s NHL Present—and Hopeful NBA Future

Samantha Holloway is steering the Kraken and hoping to revive pro hoops.
hard-knocks-2020

NFL Expands ‘Hard Knocks’ Pool of Teams: Who’s Eligible for 2025?

The NFL is relaxing rules surrounding its reality TV show.
Feb 2, 2025; Pebble Beach, California, USA; Rory McIlroy (right) is interviewed by CBS broadcaster Jim Nantz (left) on the 18th hole during the final round of the AT&T Pebble Beach Pro-Am golf tournament at Pebble Beach Golf Links.
April 2, 2025

Final Four Snags Jim Nantz’s Masters Plan Even After Retirement

Nantz’s final NCAA tournament on the call for CBS was in 2023.
NWSL
April 2, 2025

NWSL Could Make Tens of Millions Selling New TV Games

Almost 200 games are up for grabs over the next two years.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
April 1, 2025

March Madness Ratings Dip After Record Start: Will Final Four Deliver?

Viewership had been at a record pace through the opening rounds.
April 1, 2025

Yankees RSN, Comcast Reach Deal After FCC Pressure

The deal keeps the regional sports network on an expanded basic tier.
Oct 20, 2024; Green Bay, Wisconsin, USA; General view of a television camera operator during the game between the Houston Texans and Green Bay Packers at Lambeau Field.
March 31, 2025

Sources: NFL ‘Virtual Lock’ to Opt Out of Media-Rights Deals

Data continues to support an early opt-out of the league’s rights.
March 31, 2025

Former ESPN Reporter Zach Lowe Rejoins Bill Simmons at The Ringer

Lowe worked with Ringer co-founder Bill Simmons at Grantland.