Charter Communications (NASDAQ:CHTR) and AMC Networks (NASDAQ:AMCX) announced on Wednesday an early renewal of their distribution agreement, allowing Charter to continue offering AMC's portfolio of linear cable networks to its Spectrum TV customers for several more years.
As part of the agreement, Charter will now include the ad-supported version of AMC's streaming service, AMC+, at no additional cost to Spectrum TV Select subscribers.
Charter will also offer AMC+ for purchase to its millions of internet-only customers.
While the financial terms and exact duration of the deal were not disclosed, Charter emphasized the significant value it brings to customers.
Spectrum TV Select Plus subscribers will gain more than $40 per month in retail value from streaming apps, while Spectrum TV Select and Select Signature customers will see over $30 per month in retail value.
This deal follows a pattern seen in Charter's previous agreements, such as the one with Disney last year, where the company negotiated for a slimmer programming package and secured distribution rights for Disney+, Hulu, and ESPN+.
Thanks to the renewed agreement, Spectrum video customers will continue to enjoy access to AMC Networks' portfolio, which includes popular channels like BBC America, SundanceTV, and hit shows such as The Walking Dead and Interview with the Vampire.
The announcement comes at a time when distribution deals are in focus, following the failure of Disney and DirecTV to reach a new agreement, which left over 11 million DirecTV subscribers without access to ESPN, ABC, and other Disney-owned networks.