Charter Communications’ Spectrum Select, which arguably delivers more bang for the buck versus any other bundled offering in the video business, just packed in more largesse.
Under an expanded carriage agreement Charter just signed with Disney, Hulu (with Ads) will be added to the pay TV package at no extra cost to consumers starting later this summer. Also joining the bundle — as has long been anticipated — will be the streaming version of ESPN.
Disney was also able to pack linear channels into Spectrum Select that were left out of the landmark deal it signed with Charter back in September 2023 — when the cable company famously held out at the start of football season and insisted that the studio start bundling in its SVOD services. Those networks include Disney Jr, Disney XD, Freeform, FXX, FXM, Nat Geo Wild, Nat Geo Mundo and BabyTV.
Spectrum Select packages start at $95 a month (before a bunch of cable-esque taxes and fees kick in) and include more than 150 linear channels. With the addition of the basic Hulu service, and streaming ESPN, Charter now insists that Spectrum Select is delivering more than $100 of monthly value in the form of subscription streaming services alone. Here’s what was in the bundle before Hulu and ESPN are added:
Charter recently re-installed its reinvigorated video offering into the operator’s flagship services bundle, which includes Spectrum Internet and Spectrum Mobile, all marketed under the “Life Unlimited” ad campaign. In the first quarter, Charter’s TV customer losses dropped to just 181,000 versus 405,000 for Q1 2024.
“It appears that we are beginning to see early impacts of Charter’s bundled streaming packages,” wrote analyst Craig Moffett at the time.
Other pay TV operators are beginning to emulate the strategy. For example, DirecTV includes ad-supported iterations of Disney+ and HBO Max in its new Genre Pack skinny bundles.
“We began this journey to transform the video proposition for consumers with Disney, so it is befitting that this new agreement and the doubling down on our strategy continues with them,” said Tom Montemagno, executive VP of programming acquisition for Charter, in a statement. “This extension is a true testament to our mutual confidence in this innovative model — which already is showing improvement in subscriber churn — and our commitment to work creatively together to achieve win-win outcomes for both of us and most importantly for our customers — all achieved mid-cycle and absent from any of the typical pressures from expiring agreements.”
Added Sean Breen, executive VP of Disney Platform Distribution: “With the addition of Hulu and the return of our full portfolio of channels, we’re pleased to expand and extend our agreement with Charter — delivering the most robust and valuable combination of linear and streaming entertainment for years to come. This agreement reflects our continued focus on leaning into the strength of Disney’s best-in-class programming across every genre and platform — and our shared commitment with Charter to building innovative, consumer-focused distribution models that drive value across the board.”