Jessica Fischer also told an investor conference that she was bullish on having a model to 'moderate' content cost increases in future carriage deals.
Detailed the Charter CFO: “On the Disney side, Disney is going to get distribution growth across all of our linear [operations]. And then, in addition to that, they’ll have the distribution that we can offer to our broadband system, so access to a really great distribution engine. They’ll get the ad revenue, because the DTC that we’re bundling in is ad-supported.”
Fischer was also asked why Charter was unusually and publically confrontational with Disney before striking a deal. “We have tremendous respect for the Disney management team. We have tremendous respect for the content that they create,” she replied. “But they had the linchpin asset in ESPN. You couldn’t move to a new transformational model without ESPN. Because of that, we needed them to lead. … We needed them to be a first mover to get us into this transformational model.
Second, Charter kept the flexibility to offer various bundles, including skinny bundles, to serve various customer needs. In terms of “total economics,” the company exceeded expectations. Third, Charter was looking for “total economics,” where Fischer said the company “really exceeded our expectations in terms of our ability to drive total economics that we think will enable us to offer our video packages to customers at a value, which was always our goal.
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