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Spectrum owner Charter calls pay-TV model broken as it battles Disney over blackout



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Cable giant Charter Communications and Disney are in a battle over contract fees that has left millions of people without access to U.S. Open, college football and potentially “Monday Night Football,” with the NFL’s season starting in just days.On Thursday, Disney said that the two companies have been in ongoing negotiations but yet to agree to a new deal. That resulted in Charter’s customers losing access to its networks, including broadcaster ABC and pay-TV channels such as ESPN and FX. Charter and Disney’s stocks were each down more than 2% on Friday.Charter’s Spectrum TV service has roughly 14.7 million customers across 41 states, with some of its top TV markets being New York, Los Angeles, Dallas-Fort Worth and Atlanta.These sorts of battles, which can lead to so-called blackouts for pay-TV customers, are common in the industry. But, in the age of streaming, this one is different.”This is not a typical carriage dispute,” Charter CEO Chris Winfrey said Friday on a call with investors.Early Friday, Charter executives called the pay-TV ecosystem “broken.” They said they pushed for a revamped deal with Disney that would see Charter cable customers receive access to Disney’s ad-supported streaming services like Disney+ and ESPN+ at no additional cost.This seemed to be the sticking point as Charter said it accepted Disney’s request for higher fees, although Charter executives didn’t provide specifics on the negotiations as they remain hopeful to get a deal done.ESPN is said to reap high fees. ESPN receives $9.42 per subscriber a month, while other Disney networks like ESPN2, FX and Disney Channel gets $1.21, $0.93 and $1.25, respectively, according to data from S&P Global Market Intelligence. A Disney representat …

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