'The video ecosystem is broken.' ESPN, Disney blackout could be permanent, Spectrum says

A permanent drop of ESPN and other Disney-owned channels is possible, representatives for Spectrum said Friday after a dispute between the cable company and Disney caused blackouts for customers.

Representatives for Spectrum owner Charter Communications said Friday the blackouts were caused by Charter's unwillingness to participate in a deal that would see price increases for all customers, regardless of whether they were watching Disney content.

Spectrum customer? How to watch ESPN amid the blackout

Disney proposed a deal that would enact higher licensing fees and force Charter to pay for customers who don't watch Disney content, Charter representatives said.

This would decrease the flexibility in packages that allows Charter to provide service to customers, said Rich DiGeronimo, president of product and technology at Charter Communications.

Why did Disney pull ESPN, programming from Spectrum?

Charter offered Disney an alternative proposal it believes would help prevent the decline of television and video business: Disney+ streaming services would be bundled with cable service for no additional cost to customers. This proposal was designed to prevent Charter customers from paying twice for similar services, representatives said.

“We’re on the edge of a precipice," Charter Communications President and CEO Chris Winfrey said in a Friday morning webcast. "We’re either moving forward with a new collaborative video model or we’re moving on.”

Disney declined the proposal, according to Charter.

Charter has refused to enter into a deal that "reflects market-based terms," Disney said in a statement Friday afternoon, adding it has offered Charter "the most favorable terms" regarding rates, distribution, packaging and advertising.

The cable provider demanded Disney+ be made free for Spectrum customers, Disney said, adding its traditional television programming is distinct from and complementary to its streaming services. The media giant said it has made multi-billion-dollar investments in exclusive and original content.

Charter refused a proposed extension to keep the Disney networks up and running for Spectrum customers, Disney said.

"Charter’s actions are a disservice to consumers ahead of the kickoff for the college football season on ABC and ESPN’s networks," Disney's statement reads. "We value our relationship with Charter and we are ready to get back to the negotiation table to restore access to our unrivaled content to their customers as quickly as possible."

How many people are affected by the Spectrum-Disney contract negotiations?

Spectrum has 2.8 million video subscribers in Ohio and nearly 800,000 in Kentucky, according to a spokesman. Charter called the dispute "not typical" and raised the possibility that the longer the two services can't come to an agreement, the higher the probability Charter will have to proceed without Disney content.

Alternatives to Disney content would be the next step for Charter if this is the case, representatives said. This could include packages with Roku, Apple TV or Xumo.

With Charter Communication's access to a wide market across cities and Disney's ownership of ESPN, they are "ideal partners", DiGeronimo said.

"I am optimistic we can find a way forward with Disney," said Jessica Fischer, chief financial officer at Charter Communications, who acknowledged the partnership needs "to move forward quickly together or move on."

Will I be able to watch the Ohio State football vs. Indiana game on Spectrum?

Spectrum customers are experiencing an ESPN blackout, but a new media rights deal in the Big Ten Conference means that Ohio State football won't be aired on ESPN at all. But fans won't be able to watch former Buckeye Kirk Herbstreit's pregame prediction on ESPN's "College GameDay."

During the 2023 season, Big Ten football games will air on CBS, FOX, FS1, NBC, Peacock and Big Ten Network.

CBS, FOX, FS1 and NBC are available on most Spectrum packages.

This article originally appeared on Cincinnati Enquirer: ESPN, Disney blackout could be permanent, Spectrum says