Disney (DIS) -) shares edged higher Tuesday after the media and entertainment group urged customers of Spectrum cable to switch to its Hulu streaming platform, suggesting the its dispute over carriage fees with parent Charter Communications (CHTR) -) remains a long way from resolution.
Disney removed ESPN and ABC from Spectrum's cable service late last week, depriving its 14.7 million subscribers access to the start of the college football season as well as early and weekend rounds of the U.S. Open.
Disney, which is looking to renegotiate the annual $2.2 billion in fees Spectrum pays for its programming, asked the cable company's customers to sign up for Hulu, the streaming service it owns along with Comcast (CMCSA) -).
"Despite the ongoing dispute, consumers have many other choices—such as Hulu + Live TV—that allow them to enjoy the great programming for which Disney Entertainment is known," Disney said. “There’s no contract, no cable box, and no wait time to subscribe."
Charter, for its part, says Disney wants to tie it into a long-term deal, with higher rates and limited flexibility, at a time when traditional cable customers are declining and ad sales are slowing.
Don’t know if y’all heard all the news going on in the Charter Markets with Spectrum, but folks are once again coming after the World Wide Leader.
— Stephen A Smith (@stephenasmith) September 5, 2023
Fans currently don’t have access to live games on ESPN Networks — or any content from Disney-Branded Channels Freeform, FX and Nat…
"[Disney] also wants to require customers to pay twice to get content apps with the linear video they have already paid for,' Charter said. "This is not a typical carriage dispute. It is significant for Charter, and we think it is even more significant for programmers and the broader video ecosystem."
Disney shares, which hit a three-year low on Friday, were marked 0.16% higher in early afternoon trading Tuesday to change hands at $81.76 each. Charter Communications shares fell 1.65% to $415.36 each.
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