Charter Communications Loses Customers and Share Value Following Dispute With Disney
Dispute over distribution agreement with Disney causes blackout of Disney programming on Charter, leading to Charter's loss of 320,000 video subscribers and a $63 million compensation payout to customers, contributing to a 9% slump in shares.
- Charter Communications lost 320,000 video subscribers and had to compensate customers $63 million following a dispute with Disney that led to a temporary blackout of Disney channels.
- Despite this setback and a 9% slump in shares, Charter's shares remained higher for the year, with an 8.9% increase year-to-date.
- The dispute concerned the distribution agreement between Charter and Disney, which was eventually reached but caused significant customer loss in the process.
- Charter's video division revenue declined 8.6% year-over-year, attributing the decrease to the payout for the Disney issue and other factors.
- The dispute with Disney was noted by Charter CEO Chris Winfrey as a significant factor that contributed to the company's performance for the third quarter.
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