THURSDAY, SEPTEMBER 7, 2023
The ongoing standoff between Charter Communications, one of the U.S.’s largest cable entities, and Walt Disney is more than just a typical “carriage dispute” — it’s likely a roadmap for television in the age of streaming.
At the heart of this conflict is a fundamental shift in content consumption. Disney channels, including ESPN and ABC, vanished from Charter’s Spectrum service, impacting nearly 15 million subscribers. While such disputes aren’t new, the underlying dynamics here are. Media giants like Disney are investing heavily in streaming platforms, while cable providers like Charter feel they’re subsidizing a model that’s eating into their core business.
Charter currently pays Disney USD 2.2 billion annually to distribute channels like ABC and ESPN. However, with ever-rising costs and cord-cutting consumers, Charter and similar companies have been compelled to hike prices. Charter’s solution? A hybrid model that marries traditional cable with streaming. Charter’s CEO, Christopher Winfrey, succinctly summed up the company’s stance: “We’re either moving forward with a new collaborative video model, or we’re moving on.”
Charter’s demands are clear. Despite acknowledging a decline in viewership for Disney’s channels, they’re willing to pay higher fees. In return, they seek more flexibility in bundling, including options to exclude sports channels from certain packages and to offer Disney’s ad-supported streaming services to its broadband users at no extra cost.
Disney, on the other hand, is navigating the decline of cable subscriptions while bolstering its streaming arsenal. They rely on fees from companies like Charter to offset increasing programming expenses. Their goal: retain as many cable subscribers while gearing up to launch direct-to-consumer offerings, like an ESPN app. Disney has resisted Charter’s push to offer its streaming services to Spectrum subscribers for free.
The industry stands at a crossroads. Unless this battle ends in a draw (which it wont), the winning business model will set the stage for future industry-wide negotiations. The stakes could not be higher.
As always your thoughts and comments are both welcome and encouraged. Just reply to this email. -s
P.S. ICYMI: On yesterday’s Shelly Palmer LIVE, I covered ChatGPT Enterprise, Meta’s Code Llama, how we might get paid for letting AI train on our personal data, ChatGPT for Teachers, OpenAI’s copyright defense, Zoom’s new AI Companion, and more. You can watch it here.
Today’s Most Interesting Stories
Spread Your Wings: Falcon 180B is here
Shelly’s Blog: Are We the Unpaid Workforce of the AI Era?
Apple is reportedly spending “millions of dollars a day” training AI
Ghostwriter’s ‘Heart on My Sleeve,’ the AI-Generated Song Mimicking Drake and the Weeknd, Submitted for Grammys
OpenAI will host its first developer conference on November 6
Google to require campaign ads to disclose AI use
How can you take advantage of GPT-4 both personally and professionally? Generative AI for Executives is a great place to start.
VIDEO: Is Meta’s Code Llama an OpenAI Killer? | Shelly Palmer LIVE | September 6, 2023
Building a “heavy metal quartet” of AI compilers
Read More · Microsoft Research
‘Slack AI’ will summarize your work chat starting this winter
Need a Keynoter, Host or Moderator?
I would welcome the opportunity to speak at your event. Learn more.
Upcoming Events
12 SEP – Abbott Global Marketing Summit – Private Event
13 SEP – KPMG Management Committee Session – Private Event
19 SEP – E.W. Scripps Operating Committee Meeting – Private Event
20 SEP – Shelly Palmer LIVE – A weekly interactive livestream focused what’s new, what’s next, and what it means for your business – focusing on AI and emerging tech. Plus, chat is live and you can ask Shelly about technology, media, marketing, and more. Wednesdays at 12:15 p.m. ET. Request your credentials here.
29 SEP – EWA Retreat 2023 – Private Event
03 OCT – Intradiem Forefront Executive Council – Private Event
10 OCT – PTTOW! Next – Private Event
17 OCT – YPO Cincinnati – Private Event
05 DEC – Digital Marketing Virtual Conference on MarTech Automation and AI – Private Event