Reaction to the agreement made by Disney and Charter to end their carriage dispute came from across the media landscape. The STRATECHERY's Ben Thompson writes the deal “leaves the question of who won,” and the answer “depends on your perspective: are you asking about this specific stand-off, the overall future of TV, or the entire arc of video?” Thompson writes the current standoff winner is Charter while for the future of TV, the winner is Disney. He added it is “obvious, of course, that a stronger bundle is better for Disney’s existing cable channels, particularly ESPN.” Thompson: “What should also be clear is that a stronger bundle is better for Disney’s streaming services as well, and now Disney is committed to building exactly that alongside of Charter, and inevitably over the next several years, every other pay-TV provider.” This is why Disney is the "long-term winner: the obstacle to the company doing the right thing for the long-term health of their business was not Charter, it was Disney’s own management." Charter did the company the "tremendous favor of forcing it to give up an unsustainable double-dipping strategy and take a step into a future of re-bundling.” Charter, meanwhile, “knows better than anyone the value of bundles: the more services it can tie into a single billing statement the stickier their offering is for end users.” Thompson wrote Charter “may have been willing to give up video, but it is stronger for having it” (STRATECHERY, 9/12).
OTHER REACTIONS TO THE DEAL:
- In N.Y., Andrew Ross Sorkin writes the early verdict is Disney "gave up less than expected -- but made concessions that could eventually remake the pay-TV business." Charter "claimed some victories, too." It will "pay more for Disney’s top-tier channels like ESPN," but it will "cut its costs by dropping a bunch of others." Analysts credited Disney with "dodging a worst-case scenario." But while Disney execs argued that the settlement "wouldn’t set a precedent for future negotiations with cable companies, media watchers say that’s still what happened" (N.Y. TIMES, 9/12).
- CNN.com’s Oliver Darcy wrote Disney is “putting on a brave face,” but it is “hard to see how any objective observer can look at the deal [Disney CEO] Bob Iger made with Charter and not conclude that the entertainment giant caved under pressure to the cable television provider” (CNN.com, 9/11).
- Analyst Rich Greenfield “gave kudos” to Charter President & CEO Chris Winfrey, saying, “You have to give Charter the win” (“Fast Money,” CNBC, 9/11).
