Cable TV Is on Life Support, but a New Bundle Is Coming Alive

Cable TV Is on Life Support, but a New Bundle Is Coming Alive

As cord cutting accelerates across the country, with millions of Americans dropping their traditional cable-TV packages each year, it threatens to upend the pay-TV bundle, a linchpin of the media industry for decades. That became clear when Charter, in its war of words with Disney, declared that parts of the cable bundle were “broken.”

But the resolution between the two companies this week signaled that the bundle is probably not going anywhere. It’s just adjusting for new viewing habits, with cable companies aiming to sell new packages that include streaming services.

As part of the deal, Disney+, a streaming service that includes many of Disney’s biggest shows and movies, will now be offered to Charter’s TV customers.

“We very much can look back at this Disney-Charter deal as an opening salvo of a broader re-bundling,” MoffettNathanson, an influential research firm, said in a note on Monday.

For more than a half-century, the cable-TV bundle was one of the best businesses in the history of media. TV giants like Disney were paid twice: first by cable distributors, which shelled out billions every year to have channels like ESPN available for their subscribers, and then by advertisers, which opened their wallets to promote products alongside the hottest shows.

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