Charter CEO Optimistic about Disney Carriage Deal, Despite Q3 Revenue Drop and Stock Impact
Charter CEO Chris Winfrey acknowledged the loss of 320,000 video customers during the third quarter due to the Disney carriage fight but called the resulting deal a "significant step forward for the video ecosystem." The agreement, which ended a 10-day blackout of ESPN, ABC stations, and other networks, creates a new hybrid distribution model that includes free access to Disney's direct-to-consumer apps. The company estimated that the Disney dispute directly led to 100,000 video customers and 15,000 internet customers disconnecting their service. Despite beating Wall Street expectations in terms of revenue and earnings per share, Charter's shares slid due to concerns over lower-than-expected free cash flow and slower broadband growth.