No. of Recommendations: 4
Looking at the deal between DIS and CHTR. Obviously, it is good, because it restores the cash flow to DIS, but the real significance is in the future. From what I gather, Charter subscribers will now get the full DIS/ESPN package, and CHTR will pay DIS a discounted per-subscriber rate. In essence, they will share subscribers; DIS will provide the programming, and CHTR will collect the fees and pay them to DIS. Short-term, CHTR gets to keep its subscribers but gives up some profit. DIS gets a lot of new subscribers but gives up some profit. Long term, both get to preserve their options. Maybe not a bad deal for either.
abromber
