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TechCheck

Disney’s Showdown with Charter Heats Up, Plus Apple’s Overseas Headwinds 9/6/23

TechCheck

CNBC

Disruptors, Cnbc, Investing, Tech, Management, Business, Technology, Faang

4.566 Ratings

🗓️ 6 September 2023

⏱️ 9 minutes

🧾️ Download transcript

Summary

A new report today forecasts a 5% increase in U.S. ad revenue this year, but says the TV ad sector is experiencing an "existential crisis" amid an ongoing showdown between Charter and Disney that's caused sports programming blackouts for millions just as the NFL season kicks off. Plus, a top Apple analyst breaks down why shares are down today, citing two big decisions against the company - the EU naming Apple, among others, a gatekeeper under its Digital Markets Act, and Chinese officials told they can't use iPhones for work or bring them into the office.

Transcript

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0:00.0

Disney is now trying to boost growth for its streaming platform amid this

0:05.4

aggressive with an aggressive promotion amid this ongoing standoff with

0:09.5

charter over the contract fees. Are Julia Borstin here to break it all down what it means

0:14.4

for the future of TV, Julia, in our Tech Check segment? Well, Sarah,

0:19.1

Disney's Battle with Charter is being called an existential referendum on the future of the TV bundle and

0:25.5

a lot of other CEOs are weighing in Comcast CEO Brian Roberts.

0:29.5

That's CNBC's parent company discussing it today at the Goldman Sachs Communicopia Conference

0:34.6

saying he's not surprised by the dispute as every company is dealing with their

0:38.9

version of this transformational moment. He says the consumer wants simplicity

0:43.4

and the most bang for their buck

0:44.8

and this dispute is putting tension

0:47.2

around some of those issues.

0:48.8

Meanwhile, Paramount CEO Bob Backish,

0:51.0

also commenting, saying a dispute like this seems inevitable and

0:54.6

that he's been focusing on modernizing Paramount's distribution deals to offer

0:59.5

their streaming product as a tiered offering for pay TV subscribers.

1:05.0

So all of this comes as Charter is pushing to get access to Disney Plus for its subscriber

1:09.8

base without any additional cost.

1:12.9

So all of this and this conversation

1:14.9

at Disney versus Charter comes as today Disney

1:18.0

slashes the price of Disney Plus with ads

1:20.5

to $2 a month, that's a 75% discount for new and returning Disney Plus subscribers.

...

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