Disney is a dumpster fire.
Over the last few months, I covered how this media empire is crumbling before our eyes. We are witnessing a transformation of broadcast television. At the same time, the epicenter of content creation being in New York or Hollywood is changing.
The last couple weeks saw Charter, one of the largest cable operators in the United States, draw a line in the sand. This was a battle that many believed would change the path of entertainment. Whether that is the outcome remains to be seen. It was not the clear cut, radical transformation many projected.
What is certain is that Disney gave in. Charter basically got everything it asked for to start.
So lets dig in to what took place and where this goes from here.
Broadcast Fees
Disney wanted Charter to increase the amount it paid the company to carry its channels. At the top of the list is ESPN, a Disney property. This is the most expensive channel for cable companies since live sports is so popular.
On this point, Disney did get what it wanted with a slight increase.
However, that is where the story ends. Charter undertook this battle because it saw the networks looking towards streaming, meaning that they were simply sucking money out of the cable companies until the direct operations were rolled out.
For this reason, Charter took a hard stance. Disney agreed that when it does bring out is full streaming service (estimated to be in two years), Spectrum Select subscribers will get it for free. They also get a number of other channels such as ESPN+ as part of the deal.
In other words, a service that Disney is going to charge people will be free to Charter Select subscribers.
This is a major windfall for the cable company. We can expect the others to drive a similar deal.
Two Dying Entities
The question is are we dealing with two dying entities.
Broadcast television is on the decline. This is a trend that is not changing. Streaming is a major loser financially, another fact the media companies abhor owning up to. All are having to turn to the advertising model which will help soften the blow, but at what cost?
Fortunately, for Charter, it is one of the larger broadband providers. This means it benefits from the shift towards Internet transmitted content. To it, whether one watches on cable or subscribes to YouTube TV, the company doesn't care. On the latter, it gets paid for setting people up.
So Charter is going to survive unless something like Starlink takes over, which isn't going to happen in urban areas, at least for a decade or more.
What about Disney?
There is no doubt the movie library is worth a fortune. For this reason alone, it will have a future. There are also other properties making money. This company is going to survive but it is a question of how much it will have to downsize. ESPN is likely a dead animal meaning its value will consistently dwindle.
All of this will make for interesting theater.
Trouble Brewing For Pat McAfee
The relationship with Pat McAfee could be immediately tested. The show had its first episode last week and the numbers on cable stunk. Part of this could be the Charter blackout since the numbers on YouTube were solid.
However, McAfee is use to running his own show. Now, he answers to the ESPN overlords.
One of the shows regular personalities, Adam "PacMan" Jones was taken off a plane and into custody. He was reportedly drunk and causing an issue.
What happens if the execs at Disney decide they want Jones gone. He was a regular on the show and, from what I read, provided valuable contributions. Will McAfee succumb or stand up for his guy?
It is hard to know how it would shake out if it came to that. However, life with a boss is much different than doing it on your own.
A lot of money is going to McAfee. Both sides might have to tread carefully here.
 |
|---|
logo by  |
| * What is Hive |