Last year, Disney and Charter struck a groundbreaking deal that redefined the pay-TV bundle by incorporating Disney+ and ESPN+ into Spectrum’s cable packages while simultaneously dropping eight of Disney’s cable networks. Less than a year later, those same channels are back, and Hulu is now in the mix.
In an expansion of their 2023 agreement, Disney and Charter are restoring eight previously dropped linear channels, including Freeform, FXX, Disney Junior, and Nat Geo Wild, to Spectrum TV. On top of that, ad-supported Hulu will be made available at no additional cost to all Spectrum TV Select customers later this summer.
For Disney, this is a calculated move to reclaim audience scale on linear, which remains critical for advertising revenue and platform engagement. For Charter, it’s about retaining video subscribers with a more compelling product that includes streaming without requiring customers to leave the cable ecosystem.
The new agreement also opens the door for Charter broadband customers to purchase Disney+, ESPN+, Hulu, and the forthcoming ESPN standalone streamer at retail prices. Spectrum TV Select subscribers will be able to upgrade to ad-free versions of these services. The deal will be supported by joint marketing initiatives, with Disney leveraging its popular IP and talent to help drive engagement and subscriptions.
Charter has been especially aggressive in demanding more value from linear channels as programmers prioritize streaming. This new deal, finalized mid-cycle without the pressure of an expiring contract, suggests both sides see tangible value in building a distribution model that blends legacy TV with digital offerings.
Dana Walden emphasized the need to stay flexible and responsive to changing consumer habits and technology shifts. What was once seen as a zero-sum game between cable and streaming now looks like a bundled convergence, designed to stabilize churn and monetize audiences wherever they are.
If the 2023 agreement was a test case for a new approach, this 2024 update is the companies doubling down on the strategy.
