NEW YORK: Charter Communications, one of the biggest cable companies in the United States, is locked in a battle with Walt Disney in a distribution dispute that may shape the future of television in the streaming era.

       ESPN, ABC and other Disney channels disappeared from Charter’s Spectrum cable service last Thursday, depriving its nearly 15 million video subscribers of access to the US Open tennis tournament, college football and other programming.

       While such “carriage disputes” are commonplace in the media world, with TV channels going dark as cable companies negotiate with media companies over how much its channels are worth and how to package channels, this fight is different.

       Media executives are trying to build profitable streaming services even as cable providers argue they are subsidising a business that cannibalises their own.

       Charter pays Disney more than US$2.2bil annually for the right to distribute ABC, ESPN, FX and other channels to subscribers, which include major markets like New York and Los Angeles. Companies like Charter said rising distribution fees are forcing cable companies to increase prices, causing consumers to leave.

       This “vicious video cycle” has cost the industry 25 million customers over the last five years, according to Charter.

       The company wants a hybrid model that would slow the deterioration of its traditional business while giving subscribers access to new streaming services.

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       Charter president and chief executive officer Christopher Winfrey indicated the company is willing to walk away from the traditional cable television business if Charter does not get acceptable terms.

       “We’re on the edge of a precipice,” Winfrey told a press conference later Friday. “We’re either moving forward with a new collaborative video model, or we’re moving on.” — Reuters