Charter is the first cable network to ink an SVOD-inclusive carriage deal — but given the mutual benefits, more are likely on the way:
with Disney wherein the cable company will carry all of Disney's linear channels — including ESPN — but will also offer Disney's forthcoming Disney+, ESPN+, and Hulu through its Spectrum set-top-box, per CNBC. The deal also includes the college sports channel ACC Network under ESPN, and all of Disney's additional properties recently acquired from Fox, including FX and National Geographic.
Disney will likely pursue additional deals to give its newer offerings a boost in early days. Disney is looking for as many sign-up incentives as possible, and integration into Charter's set-top box enables streamlined access to the Disney SVOD suite. The Charter deal gives the media giant access to millions of potential new SVOD subs: Charter is the No.
As the streaming wars heat up, deals with traditional distributors could allow Disney — and other streamers — to tap into an audience segment that's comparatively more resistant to SVOD. Most pay-TV customers are likely among: In fact, on average, consumers ages 65+ spend at least 50 minutes more time watching TV than any other age group, and 260 more than the coveted 18-24 group, per eMarketer.
A strategy that meets these consumers where they are, with pay-TV as the entry point, could be a smart way to pull them into the SVOD fold. Disney isn't alone in recognizing that: Netflix, Amazon, and Hulu have also pushed integration into TV set-top boxes to broaden their distribution reach and drive sign-ups. But Disney may be particularly well-suited to capitalize on such a strategy since it has offerings that appeal to all age ranges and demographics.
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