Disney, Charter resolve dispute in time for 'Monday Night Football'

Disney (DIS) and Charter Communications (CHTR) are trading higher after reaching an agreement on a new carriage deal, ending a blackout that lasted longer than a week. The agreement comes hours before kickoff of the first "Monday Night Football" game of the season. Yahoo Finance Senior Reporter, Alexandra Canal joins the live show to discuss what this means for the future of streaming. Both companies have agreed to a multi-year distribution deal, which includes things like a Disney+ Basic subscription being included with Spectrum TV Select Video packages.

Video transcript

- Well, shares of both Disney and Charter pushing higher after the companies reached a deal to end the blackout just hours before the first Monday Night Football game of the season. Joining us now with those details, Yahoo Finance senior reporter, Alexandra Canal. And Allie, it came down to the wire here.

ALEXANDRA CANAL: Came down to the wire. But finally, those Monday Night Football fans will be able to watch the game tonight, which airs on Disney's ESPN. And the end of this carriage dispute comes at a time in media where we're just seeing this upheaval. But digging through the details of this deal, it does seem like Charter was the big winner here, especially when we think about the future of the linear cable bundle and what's ultimately included in those offerings.

According to a joint press release, the Disney Plus basic ad supported offering will be provided to Charter customers who purchase a Spectrum TV select package at no additional cost. Now in return, Spectrum is paying Disney a, quote, wholesale rate, although the financial details there were not disclosed.

Now in addition to Disney Plus, ESPN Plus will also be available at no additional cost to customers who subscribe to the Spectrum TV Select Plus package. That's the more sports-centric package there. And then on top of that, once Disney debuts the ESPN direct to consumer platform at some time 2024, 2025, TBD on the timing there, that's also going to be available to those Select subscribers at no additional cost.

So a huge shift here when we think about linear TV. And really, that's what Charter was fighting for. They wanted more flexibility in those bundles. They wanted their consumers to be able to enjoy some of those streaming offerings considering we're at a time where cord cutting has just escalated across the board. And even Disney said that this is a time to be flexible considering the model has rapidly changed.

Now part of that flexibility means there has to be a give and take, and there are some channels that Disney owns like Freeform, Disney Junior, Nat Geo, Wild, among many others, which will no longer be offered on Spectrum. So again, part of that tradeoff there is both sides really focused on creating the greatest value of this deal.

And as a reminder, Charter Communications is the second largest cable operator in the United States. So if there's any company that's going to set a precedent moving forward, it's going to be Charter. So interesting that this came down to the wire, but good news ultimately that football fans can enjoy their Monday Night Football.

- A heck of a lot of happy football fans out there that they were able to get this done ahead of tonight's game. Right, Allie, thanks.