Disney-owned channels including ABC and ESPN were pulled from DirecTV’s lineup on Sunday after talks to reach a new distribution deal between the companies collapsed. The blackout started midway through ESPN’s broadcast of the US Open tennis tournament, and just ahead of the NFL season opener this coming weekend.
DirecTV and Disney are both blaming each other for causing the blackout. The only thing for certain is that DirecTV’s roughly 11 million subscribers are the ones suffering.
DirecTV says it’s being prevented from offering more flexible packages that can more closely cater to consumer interest, and that Disney is “herding consumers away” from network TV by shifting content to Disney-owned streaming services like Hulu and Disney Plus. Disney is also accused of including a last-minute demand to waive all claims that its behavior is anti-competitive, according to DirecTV.
“The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system,” Rob Thun, chief content officer at DirecTV, said in a statement. “Disney is in the business of creating alternate realities, but this is the real world where we believe you earn your way and must answer for your own actions. They want to continue to chase maximum profits and dominant control at the expense of consumers – making it harder for them to select the shows and sports they want at a reasonable price.”
Disney says it won’t enter into an agreement that undervalues its portfolio
Disney, meanwhile, says its channels are worth a premium that DirecTV is refusing to pay.
“While we’re open to offering DirecTV flexibility and terms which we’ve extended to other distributors, we will not enter into an agreement that undervalues our portfolio of television channels and programs. We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that’s what our viewers expect and deserve,” the company said in a statement on its website. “We urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”
The deal that expired on Sunday was negotiated in 2019, according to Reuters. These contracts are typically made to intentionally expire during periods of peak viewership as an incentive for both parties to renegotiate. Nevertheless, carriage disputes are fairly common — Disney pulled a similar move on the same day last year when it blocked its channels for Charter’s Spectrum subscribers in the middle of the US Open. That blackout lasted for twelve days before a new deal was reached.
