Disney Urges Spectrum Users to Switch to Hulu Live Plan

A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, US, December 14, 2017. REUTERS/Brendan McDermid/File Photo
A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, US, December 14, 2017. REUTERS/Brendan McDermid/File Photo
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Disney Urges Spectrum Users to Switch to Hulu Live Plan

A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, US, December 14, 2017. REUTERS/Brendan McDermid/File Photo
A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, US, December 14, 2017. REUTERS/Brendan McDermid/File Photo

Walt Disney urged customers of Charter Communications' Spectrum cable service to consider switching to a live television option from Hulu as the media companies remain at odds over a new distribution deal.
In a blog post on Monday, Disney said it hoped it would be able to reach an agreement to restore access to ABC, ESPN and other Disney-owned channels that have been blacked out on Charter's service since Thursday.
With no deal in place, Disney suggested that Spectrum customers sign up for Hulu + Live TV, a streaming service that offers ESPN, ABC, Disney+ and dozens of other cable channels. Disney owns a majority stake in Hulu, Reuters said.
"Despite the ongoing dispute, consumers have many other choices—such as Hulu + Live TV—that allow them to enjoy the great programming for which Disney Entertainment is known," the company said in a statement.
“There’s no contract, no cable box, and no wait time to subscribe,” Disney said in the blog post.
It sent a similar message across the company's social media channels.
Disney pulled its channels off Charter's Spectrum cable service last week in the middle of US Open tennis coverage and other live sporting events including college football.
Charter's dispute with Disney stems in part from the fees Disney is seeking for its programming at a time when cable TV viewership is on the decline and streaming on the rise.
On Friday, Charter Chief Executive Christopher Winfrey said the disagreement was "not the typical carriage dispute."
"We're either moving forward with a new collaborative video model or we're moving on," Winfrey said.
The cable operator said it had been paying about $2.2 billion in annual programing costs to Disney, excluding the impact of advertising revenue for both parties. Charter has about 14.7 million subscribers to its Spectrum TV service in markets including New York and Los Angeles.



Netflix Subscriber Additions Likely Slowed, Growth Strategy in Focus

FILE PHOTO: The Netflix logo is shown on one of their Hollywood buildings in Los Angeles, California, US, July 12, 2023. REUTERS/Mike Blake/File Photo
FILE PHOTO: The Netflix logo is shown on one of their Hollywood buildings in Los Angeles, California, US, July 12, 2023. REUTERS/Mike Blake/File Photo
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Netflix Subscriber Additions Likely Slowed, Growth Strategy in Focus

FILE PHOTO: The Netflix logo is shown on one of their Hollywood buildings in Los Angeles, California, US, July 12, 2023. REUTERS/Mike Blake/File Photo
FILE PHOTO: The Netflix logo is shown on one of their Hollywood buildings in Los Angeles, California, US, July 12, 2023. REUTERS/Mike Blake/File Photo

Netflix could report its slowest subscriber additions in six quarters on Thursday as gains from a password-sharing crackdown ease, with investors looking for signs its nascent ad revenue business is accelerating.
The streaming giant likely added 4 million subscribers in the July-September period, according to analysts' estimates compiled by LSEG. Netflix originals such as "The Accident" and "The Perfect Couple" were among the top streamed titles in the US during the quarter, Nielsen data showed, according to Reuters.
As the pace of sign-ups slows, Netflix is trying to shift investor attention towards other performance measures including revenue growth and margins. It will stop reporting subscriber data from 2025.
"Their focus is to continue to grow subscribers at a healthy clip while also leveraging their scale, ability to raise prices and increase advertising dollars," said Pivotal Research analyst Jeff Wlodarczak.
The company's ad-supported plan has been growing but Netflix does not offer details on the tier's financial performance and does not expect it to become a primary driver of growth until 2026.
This has raised some concerns about its growth trajectory.
"They're making less than a billion dollars a year in the US on advertising, saying that doesn't make them look good," eMarketer television and streaming analyst Ross Benes said.
Some analysts have said the company needs to raise prices and phase out more of its ad free plans to nudge customers towards the tier with commercials as it usually brings in more revenue per user.
The company said in July last year it would stop offering the $9.99 a month basic plan without commercials to new users in the US and the UK, and phase it out for existing subscribers.
Netflix charges $6.99 per month in the US for the ad tier, while its standard plan without commercials is priced at $15.49 a month.
It has not raised the price of its standard plan since early 2022, while its ad-supported tier has been priced the same since its launch in late 2022.
The company, which operates in more than 190 countries, is expected to report ad revenue of $242.7 million in the third quarter, according to the average of estimates from three analysts compiled by LSEG. Overall revenue is expected to grow 14.3%, a slightly slower pace than the previous three months, to $9.76 billion.
To attract more advertisers, the streamer is focusing on live events including sports. Netflix will air the highly anticipated Jake Paul vs. Mike Tyson boxing fight in November, followed by its first NFL games in December.
The second season of hit South Korean drama series "Squid Game,” expected to release in December, could help the company draw subscribers in the last quarter of the year.
Netflix stock has risen 12.4% since it reported second-quarter results in July, compared with a 5% rise in the S&P 500 index.