Charter adds Warner Bros Discovery streaming service at no extra cost By Reuters

(Reuters) – Charter Communications (NASDAQ: ) will offer Warner Bros. Discovery’s (NASDAQ: ) Max streaming service and Discovery+ at no additional charge, the companies said Thursday, potentially increasing the cable and broadband company’s user base.

Shares of Warner Bros Discovery rose about 7 percent in morning trading, while those of Charter gained more than 2 percent.

In an early renewal of their multi-year deal, the companies said an ad-supported version of Max, which includes all HBO and Discovery+ content, will be available for all Spectrum TV Select packages. Charter is the largest pay television company in the country.

Max and Discovery+ will be added to the Spectrum package, which already includes streaming platforms such as Disney+, ESPN+ and Paramount+.

As part of the deal, Spectrum will continue to carry the Warner Bros Discovery portfolio of TV networks, including sports networks TNT, CNN, Food Network and Discovery.

The media and entertainment giant’s television business is struggling due to cord-cutting by consumers and a weak recovery in the advertising market.

The companies did not disclose financial terms of the deal.

Investor concerns grew after Warner Bros Discovery did not renew broadcast rights for National Basketball Association (NBA) games. The media company sued the NBA in New York after the league rejected its offer of equality.

Charter won some concessions last year from Walt Disney (NYSE: ). It negotiated for a smaller bundle of programming and won rights to distribute Disney+, Hulu and ESPN+ to its Spectrum TV customers.