Stratechery Charter-Disney Winners and Losers
Sep 12, 2023
The discussion kicks off with a crucial agreement between Disney and Charter, ending a major channel blackout for subscribers. The negotiation dynamics reveal Charter's leverage, while questioning Disney's adaptability in a changing media landscape. A deep dive into the value of bundling showcases a strategic shift that could benefit consumers. Finally, the podcast analyzes how consumer preference for ad-free content is reshaping TV and broadband competition, leaving traditional cable providers scrambling to keep up.
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Standoff Winner
- Charter won the standoff with Disney by securing favorable terms.
- Disney conceded to Charter's demands, giving up its double-dipping strategy.
Future of TV Winner
- Disney's long-term win involves rebundling and a stronger cable partnership with Charter.
- This forces Disney to abandon its unsustainable double-dipping approach.
Arc of Video Winner
- Consumers benefit from increased a-la-carte options, on-demand entertainment, and greater sports access.
- This weakens the traditional cable bundle, pushing Charter to improve broadband quality.