Title: Walt Disney Co. and Charter Communications Reach New Carriage Agreement, Impacting Streaming Market
In a significant development for the streaming market, The Walt Disney Co. and Charter Communications have successfully resolved their standoff with a new carriage agreement. This breakthrough puts an end to the blackout that left millions of pay TV customers without access to Disney-owned networks.
Analyzing the deal, Wall Street experts have highlighted its implications for both Disney and Charter. Macquarie analyst Tim Nollen sees this as a win-win situation, believing it will accelerate the industry’s transition towards a fully streaming future.
Under the agreement, Disney can expect to generate additional revenue of approximately $400-500 million annually by distributing its newest streaming service, Disney+, to Charter subscribers. Notably, Charter will be exempt from paying fees for the ESPN+ service. This outcome is seen as favorable for Disney, while Charter stands to benefit from better content and increased flexibility, as pointed out by UBS analyst John Hodulik.
Guggenheim Securities analyst Michael Morris believes the deal positions both companies to drive value in the streaming market. However, MoffettNathanson analysts Michael Nathanson and Robert Fishman argue that Charter emerges as the winner, as it will no longer carry several Disney channels and will likely pay lower fees for the remaining networks. Their estimations suggest this could cost Disney around $300 million annually.
Bank of America analyst Jessica Reif Ehrlich views the agreement as a positive outcome, which will foster growth for Disney’s ad-supported streaming service, Disney+. This new deal sets a precedent for future negotiations in the industry and is likely to influence other media networks, according to the analysts.
With experts concurring on the deal’s significance and its potential effects on the streaming market, this new carriage agreement between Disney and Charter marks a crucial milestone in the industry. Customers can now look forward to enhanced offerings from both companies, while other media networks will closely watch the impact of this deal on their own negotiations.
As the industry is increasingly driven by online streaming, this agreement paves the way for a future where consumers can enjoy a wider range of content and media companies can adapt to evolving viewership trends.
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