The Walt Disney Company and Charter Communications have reached an expanded distribution agreement under which users will gain access to Hulu with advertisements to all Spectrum TV Select customers at no additional cost. In addition, these customers are also going to receive complimentary access to the ad-supported version of Disney+ and the forthcoming ESPN direct-to-consumer service. Charter Communications estimates the retail streaming value of these premium entertainment experiences to be more than $100 per month.
“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,” Tom Montemagno, executive vice president of programming Acquisition for Charter Communications, said in a statement. “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.”
In addition to the streaming platforms, eight Disney-owned linear networks have made their return to the channel lineup, some of which include Disney XD, Nat Geo Wild and Freeform. Disney and Charter reached an agreement in September 2023 that restored ESPN to approximately 15 million subscribers before the New York Jets debut of quarterback Aaron Rodgers on Monday Night Football. Charter Communications has reached several other carriage deals over recent years, including a contract with Comcast Corporation that granted access to Peacock at no additional cost for its subscribers.
“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,” Sean Breen, executive vice president of Disney Platform Distribution for The Walt Disney Company, said in a statement. “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.”
ESPN is slated to launch its direct-to-consumer service in the fall through which its linear networks will be available without a pay television subscription for the first time in history. Concurrent with this venture, ESPN is also introducing an enhanced edition of its app that will have new features and experiences for fans.
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