A major carriage dispute between Walt Disney Company and DirecTV has left millions of subscribers without access to popular channels like ABC, ESPN, and Disney Channel. The blackout began Sunday, just as ESPN was broadcasting the U.S. Open tennis tournament and days before the NFL season kicks off.
Disagreement over the terms of a new distribution deal
At the heart of the dispute is a disagreement over the terms of a new distribution deal. DirecTV, the third-largest TV provider in the U.S., argues that Disney is demanding excessive fees for its channels and is seeking to “herd consumers away” from traditional cable TV by focusing on its streaming services like Hulu and Disney+.
“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.” DirecTV chief content officer Rob Thun said.
Disney, on the other hand, maintains that its channels are worth a premium and that DirecTV is refusing to pay a fair price.
“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,” Disney Entertainment and ESPN executives said in a joint statement.
The blackout has had significant implications for viewers, who are missing out on major sporting events and popular programming. DirecTV’s approximately 11 million subscribers are unable to watch the NFL season opener, college football games, or the U.S. Open.
What’s next?
The dispute has also raised concerns about the future of traditional television. As streaming services continue to gain popularity, cable providers are facing increasing pressure to offer more flexible and affordable packages to compete.
The blackout comes a year after Disney successfully negotiated a new deal with Charter Communications, another major cable provider. That deal allowed Charter to offer Disney’s streaming services to its subscribers at a discounted rate. However, the negotiations with DirecTV have proven to be more contentious.
It remains to be seen how long the blackout will last. Both companies have accused the other of acting in bad faith, and there is no indication of a quick resolution.
