Paramount Global has created numerous spin-offs of its main cable channels, with Nickelodeon siring five programming offspring, Nick Jr., Nick at Nite, TeenNick, Nicktoons and Nick Music.Īs these companies enter into renewal talks in the coming months and years, the new deal template could give media owners an excuse to drop losers in the lineup, executives said.
Warner Bros Discovery, for example, operates 30 general entertainment, lifestyle and news networks in the U.S., including the American Heroes Channel and the Science channel. “It’s pretty clear that only the largest networks will survive as part of bundles.” “We’re at an interesting inflection point where the traditional bundle is falling apart and the question is, what’s going to replace it?” said Jonathan Miller, a veteran media executive and chief executive officer of Integrated Media Co., a special purpose media investment company. The owners of these channels “are probably having a lot of heartburn,” as they anticipate “those will get chucked overboard” in the next round of negotiations.
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Pity the cable TV channels that few people watch, said one TV station group executive. “The end result is a more expensive bundle, but a more valuable multichannel video package,” wrote Greenfield. That potentially enhances the streaming service’s value to advertisers, even as the cable company ensures its subscribers can watch content created for streaming. LightShed media analyst Rich Greenfield estimated Charter will pay Disney a wholesale rate of $3 a month, per subscriber, to give 9.5 million of Charter's Signature Select customers access to Disney+ at no additional cost to the consumer. The new type of bundle deal combining traditional channels with streaming services provides a way forward for the media business.
Spectrum’s customers will also receive ESPN when the sports network begins offering its flagship channel as a streaming service. Cable distributors like Charter accused big media companies of putting some of their best shows on subscription streaming video services like Disney+ and Paramount+, and using cable fees to subsidize the cost of creating this exclusive programming.įrustrated by paying media companies higher fees for less, Charter proposed a new type of cable TV bundle that combines Disney’s most popular cable TV channels, such as ESPN and FX, with access to ad-supported versions of its streaming services, Disney+ and ESPN+, which certain Charter’s Spectrum customers will receive for free.
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