Charter Communications' stock has fallen during the dispute with Walt Disney, but one analyst believes it is a buy.
Walt Disney Co. and Charter Communications have reached an agreement that restores Disney channels to Charter's pay-TV service, with Charter gaining the ability to offer Disney's ad-supported streaming apps and Disney programming having access to Charter's television service, preserving the cable bundle for now.
Disney and Charter have settled their recent carriage dispute, with Charter gaining the right to offer the ad-supported tier of Disney+ to its subscribers in exchange for a wholesale fee, and Disney gaining access to Charter's distribution muscle to push its entire direct-to-consumer portfolio.
The new carriage agreement between Disney and Charter Communications is seen as a win for both parties, with Disney gaining additional revenue through new distribution channels and Charter saving on unwanted linear networks. However, there are concerns about the impact on the broader entertainment industry and the future of linear TV.
Charter's CFO, Jessica Fischer, stated that the carriage renewal deal with Disney "met all of our objectives" and resulted in only moderate TV subscriber losses, with Charter securing the ability to integrate Disney streaming services.
