Disney's Bob Iger Faces Showdown With 'Cable Cowboy' John Malone Amid Hollywood Strike

Disney (NYSE:DIS) is in the midst of a contract dispute with Charter Communications (NASDAQ:CHTR) headed by John Malone, over the terms of a new agreement for carrying its channels, Business Insider reported. This comes as Disney faces heat from the ongoing actors’ and writers’ strike in Hollywood.

Charter argues that Disney, in its latest proposal, is demanding higher fees for its channels without waiving charges for its streaming services to Charter customers. Charter says that this results in customers essentially paying twice for viewing Disney content.

Disney maintained that it had offered Charter the most favorable terms on rates, distribution, packaging, advertising, and more. It added that Charter had refused to enter into a new agreement reflecting market-based terms.

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Charter disconnected Disney’s channels, including FX and ESPN, for its 15 million customers on Thursday.

Despite the dispute, Disney is not backing down, with CEO Bob Iger stating that the company is exploring a variety of strategic options for its networks, including the Disney Channel, NatGeo, and FX.

The ongoing battle could impact Disney’s significant revenue from traditional TV, which brought in $28.4 billion and profits of $8.5 billion last year. Additionally, fees from Charter were expected to generate $2.2 billion for Disney, according to its latest results.

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