Disney and Charter vs. Cord Cutting?

 by Ray Keating

Analysis

DisneyBizJournal.com

September 12, 2023

 

The Walt Disney Company and Charter Communications came to an agreement on Monday (September 12) just in time for Jets fans with Spectrum cable to see their bad luck continue with a potentially season-ending injury for quarterback Aaron Rodgers during “Monday Night Football.”

But this wasn’t your typical last-minute deal regarding carriage fees cable companies pay for assorted channels. In a joint press release, Disney and Charter called this a “transformative” agreement – and that might not be your typical corporate PR hyperbole.

 

Disney had pulled its cable channels from Charter’s Spectrum cable on August 31. In the deal announced on Monday, the Disney offerings on Spectrum will be reduced from 27 channels to 19, according to the Associated Press. At the same time, Charter’s fees to Disney are “expected to increase, although financial terms were not released on Monday.”

 

But the truly big news in this announcement is about Disney’s streaming services. Here are the four key points from the release:

 

• “In the coming months, the Disney+ Basic ad-supported offering will be provided to customers who purchase the Spectrum TV Select package, as part of a wholesale arrangement.”

 

• “ESPN+ will be provided to Spectrum TV Select Plus subscribers.”

 

• “The ESPN flagship direct-to-consumer service will be made available to Spectrum TV Select subscribers when it launches.”

 

• “Charter will also use its significant distribution capabilities to offer Disney’s direct-to-consumer services to all its customers – in particular its large broadband-only customer base – for purchase at retail rates. These include Disney+, Hulu and ESPN+, as well as The Disney Bundle.”

 

So, Disney streaming services are going to be offered through Spectrum cable. This is a striking melding of linear and streaming. Could this Disney-Charter agreement be “transformative” in terms of its effects on cable and streaming? Maybe. 

 

It definitely warrants watching, and keeping an eye on how other streamers and cable companies react, including how Disney works with other cable companies. As AP noted: “While making a direct-to-consumer product available through a cable system may seem counterintuitive, the deal will help the soon-to-be launched ESPN service get established and have more access to advertisers, [ESPN President Jimmy] Pitaro said.”

 

In a joint statement, Disney CEO Bob Iger and Charter CEO Chris Winfrey said: “Our collective goal has always been to build an innovative model for the future. This deal recognizes both the continued value of linear television and the growing popularity of streaming services while addressing the evolving needs of our consumers.”

 

Immediate thoughts? Fascinating. Weird and challenging – given what we’ve heard and assumed about streaming killing cable and accelerating cord cutting. Maybe a game-changer – at least possibly for the near term.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right? (Keating is a Disney shareholder.)

 

Consider books by Ray Keating, including…

 

• The Pastor Stephen Grant thrillers and mysteries. Here are 18 books in the series now with the latest being Under the Golden Dome: A Pastor Stephen Grant Novel and For Better, For Worse: A Pastor Stephen Grant Short Story.

 

• Order The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Kindle editions and paperbacks via Amazon here and signed books here. And don’t forget the first book in this growing series, i.e., The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks at RayKeatingOnline.com or paperbacks, hardcovers and Kindle editions at Amazon.com.

 

• Cathedral: An Alliance of Saint Michael Novel. Signed paperbacks and/or paperbacks, hardcovers and the Kindle edition at Amazon. 

 

• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Netflix vs. Disney+ Streaming Wars: Ad-Supported Tiers

 by Ray Keating

News/Analysis

DisneyBizJournal.com

October 15, 2022

 

The ad-supported options in the streaming “wars” are about to expand, with Netflix adding an ad-supported tier on November 3 – a month before the Disney+ ad-supported service comes on line.

Netflix will charge $6.99 per month. That will be a dollar less per month than what Disney+ will charge for its ad-supported streaming option.

 

Netflix reported that ads will be 15-30 seconds in length, and will run before and during programs. There will be an average of 4-5 minutes of ads per hour. As for advertisers, they will be able to target audiences by country and by genre (such as action, sci-fi, drama, etc.), while also making sure that ads do not run during content that do not align with their brand.

 

The price of Disney+ without ads also will increase by one dollar per month to $10.99 in early December. That compares to Netflix’s $9.99 for its basic non-ad option.

 

Other major streaming services that offer ad-supported options are Paramount+ ($4.99 per month with ads and $9.99 without), Peacock ($4.99 per month with ads and $9.99 without), HBO Max ($9.99 per month with ads and $14.99 without), and Disney’s Hulu ($7.99 per month with ads and $14.99 without). The monthly cost of ESPN+ was increased by a dollar in August, and Hulu also by $1 early this week.

 

The Disney bundle – Disney+, ESPN+ and Hulu (ad supported) – currently costs $13.99 per month, and will rise to $14.99 in December.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, and the Alliance of Saint Michael novels; and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right? 

 

Ray Keating is the author of the Pastor Stephen Grant thrillers and mysteries. Pre-Order Persecution: A Pastor Stephen Grant Novel. Keating says, “I think Persecution might be the most action-packed of any of the Pastor Stephen Grant books so far.”

Signed books at https://raykeatingonline.com/products/persecution  

Kindle edition at https://www.amazon.com/dp/B0BHHJNNB4

 

Two great ways to order Cathedral: An Alliance of Saint Michael Novel, which is the first in the Alliance of Saint Michael series. Signed paperbacks here and the Kindle edition here. 

 

Two great ways to order Ray Keating’s new nonfiction book – The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks here, and paperbacks, hardcovers and Kindle editions here.  

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Different Takes on Disney’s Hulu

 by Ray Keating

News/Analysis

DisneyBizJournal.com

July 19, 2022

 

Depending on who one turns to for an assessment, Hulu is either a leader and an opportunity for Disney, or a potential financial burden.

Comcast still owns 33 percent of Hulu, with Disney controlling the rest, gaining Fox’s 33 percent Hulu stake in the 2019 acquisition of Fox. As it stands now, Comcast has a passive role in Hulu and has agreed to hold that position until 2024. After that, Comcast can force a buyout by Disney based on a total valuation of $27.5 billion – with Comcast then getting more than $9 billion from Disney – or Disney could choose to execute the buyout. That price tag, however, could go higher if an independent party determines that the fair market value is, in fact, higher. This is one of the big-dollar unknowns left behind by Bob Iger.

 

If you read a recent take at CNBC, Hulu is a problem child for Disney, not really fitting in and Disney not offering a clear vision for the service. Indeed, it was emphasized that perhaps Hulu could be sold to Comcast, as opposed to Disney completing its purchase of Hulu from Comcast. However, it’s hard to see how the possible challenges laid out for Hulu with Disney, if accurate, of course, wouldn’t turn out to be much the same for Comcast, which already has the Peacock streaming service.

 

Meanwhile, a recent Hollywood Reporter story offered the following: “At the very least, Disney will be forced to strike a deal with Comcast over the future of Hulu, with the cable giant able to force Disney to buy out its 33 percent stake in 2024 for market value. Given Chapek’s ambitions in streaming, an early buyout could give Disney more optionality in its plans.” An early buyout? Wow. That’s quite a different take.

 

And then there’s a Wall Street Journal article published on July 18 that, based on an analysis done by Antenna, reported Hulu subscriptions growing faster than Disney+ subs. It was noted: “New subscriptions to Hulu have outpaced those of Disney’s flagship streaming platform, Disney+, in 18 of the past 24 months, and total new subscriptions to Hulu have exceeded those to Disney+ in each of the last six quarters…”

 

Indeed, it also was noted in the CNBC story: “Hulu has doubled its total subscribers since 2018. The streaming service continues to churn out critically acclaimed series, including ‘Pen15,’ ‘Dopesick’ and ‘The Dropout.’” 

 

According to the reporting, Disney basically confirmed the data presented in the Journal analysis. So, the assertions that Disney might sell Hulu to Comcast appear pretty absurd.

 

Analysts do seem to be unified in looking for greater convergence between Disney+ and Hulu. Maybe, and it’s unclear as to what that would mean exactly. That question also goes to how distinct Chapek views the Disney brand. He has indicated a willingness to be more expansive, beyond the strictest family-friendly-fare criteria. Yet, there remains plenty of material that is hard to imagine fitting on Disney+, and those also are opportunity-rich areas, which further strengthens Hulu as part of the Disney portfolio.

 

Looking ahead for the near term at least, it’s hard to deny that the Disney bundle – Disney+, ESPN+ and Hulu at one price – will help the company gain or keep subscribers across all three streaming services in a tougher economy.

 

Is Hulu a problem child or a valuable asset that’s aiding Disney’s streaming dreams? I strongly lean toward the latter, but the company would benefit from more explicitly showing where it plans to take Hulu, and how it fits in with or alongside Disney+.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, and the Alliance of Saint Michael novels; and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?

 

Two great ways to order Cathedral: An Alliance of Saint Michael Novel, which is Ray’s sixteenth work of fiction, and the first in the Alliance of Saint Michael series. Signed paperbacks here and the Kindle edition here. 

 

Two great ways to order Ray Keating’s new nonfiction book – The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks here, and paperbacks, hardcovers and Kindle editions here.  

 

Get all of Ray Keating Pastor Stephen Grant thrillers and mysteries in paperback and for the Kindle at Amazon.com and signed books at www.RayKeatingOnline.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

ESPN+ Price Hike Coming and What About NFL Sunday Ticket?

 by Ray Keating

News/Analysis

DisneyBizJournal.com

July 17, 2022

 

A price hike is coming for ESPN+ subscribers, according to a CNBC report, but not for those who subscribe via the Disney bundle, that is, Disney+, ESPN+ and Hulu packaged together.

CNBC noted that the monthly subscription price for ESPN+ will be going from $6.99 per month to $9.99 as of August 23. The annual cost for ESPN+ would go from $69.99 to $99.99. The monthly bundle price will remain at $13.99.

 

ESPN+ has an impressive line-up for sports fans, including NHL hockey games and and PGA Tour Live. 

 

For good measure, Disney remains in the running for NFL Sunday Ticket, which allows viewers to have access to all out-of-market Sunday afternoon games. Sunday Ticket always has been on DirecTV, but that deal is due to expire at the end of the 2022 NFL season. The NFL has made clear that it wants a streaming partner, and Disney/ESPN, Apple and Amazon reportedly are in the mix. Also, NFL Commissioner Roger Goodell has said that a decision on NFL Ticket will come before the fall. Rumors swirl that Apple is in front to win, at least for now, as speculation has been quite fluid around this topic for some time now.

 

In addition, the NFL will soon be launching its own NFL+ streaming service.

 

The latest numbers show that ESPN+ has 22.3 million subscribers.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, and the Alliance of Saint Michael novels; and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?

 

Two great ways to order Cathedral: An Alliance of Saint Michael Novel, which is Ray’s sixteenth work of fiction, and the first in the Alliance of Saint Michael series. Signed paperbacks here and the Kindle edition here. 

 

Two great ways to order Ray Keating’s new nonfiction book – The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks here, and paperbacks, hardcovers and Kindle editions here.  

 

Get all of Ray Keating Pastor Stephen Grant thrillers and mysteries in paperback and for the Kindle at Amazon.com and signed books at www.RayKeatingOnline.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Verizon to Offer the Disney Streaming Bundle for Free

by Ray Keating

News

DisneyBizJournal.com

August 19, 2020

Early this week, Verizon announced an extended agreement with The Walt Disney Company. Starting on August 20, the Disney streaming bundle of Disney+, Hulu and ESPN+ will be included in certain Verizon wireless plans.

Specifically, Verizon’s “Get More Unlimited” and “Play Unlimited” plans will include the Disney Bundle. The “Do More Unlimited” and “Start Unlimited” plans include Disney+.

Frank Boulben, a Verizon senior vice president of marketing and products, was quoted in a company release, “We led the industry by giving customers Disney+ on us. Now we're adding The Disney Bundle, which includes Disney+, Hulu and ESPN+, for more entertainment choices that appeal to a variety of interests. We can’t wait to see what customers choose to suit their needs.”

Sean Breen, executive vice president for Disney’s platform distribution, said, “We are always looking for the most advantageous ways for consumers to experience our content and we are pleased to work with Verizon so that they can provide their customers with these appealing new offers.”

Verizon noted, “Existing customers currently receiving 12-months access to Disney+ on us can move to our new Play More and Get More Unlimited plans with The Disney Bundle included, or for $6 per month they can stay in their current plan and add both ESPN+ and Hulu to complete The Disney Bundle.”

This Verizon announcement lines up with Disney’s major push into online video in the U.S. and internationally.

__________

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels. He can be contacted at  raykeating@keatingreports.com.

Also, get the paperback or Kindle edition of Ray Keating’s new book Behind Enemy Lines: Conservative Communiques from Left-Wing New York.