Disney Nets Go Dark on DirecTV
Shortly before kickoff for Sunday night’s USC-LSU game, DirecTV lost all Disney networks, including ESPN, ABC O&Os and FX. The blackout also includes all ABC stations on DirecTV Stream as ABC negotiates streaming rights for affiliates, which opt in.
DirecTV claims the programmer is demanding customers pay for channels they don’t watch as well as streaming services. And it said that earlier today, Disney demanded DirecTV waive all future legal claims that its behavior is anti-competitive. Disney, along with Fox Corp. and Warner Bros. Discovery, are currently being sued by Fubo over their planned sports streaming jv Venu. The service was supposed to launch in late August, but a judge granted a temporary injunction, finding Fubo is likely to prevail in its challenge.
“The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system,” Rob Thun, DirecTV’s Chief Content Officer, 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.”
Of course, Disney sees things differently, arguing that the rates its seeking are in line with what other providers are paying. It also is pushing back against DirecTV’s claims that it won’t engage in discussions for skinnier bundles. Disney has put forth proposals that include offering a sports-centric package with ESPN networks and ABC as well a selection of linear channels paired with DTC services similar to the deal Charter struck last fall.
“DirecTV chose to deny millions of subscribers access to our content just as we head into the final week of the US Open and gear up for college football and the opening of the NFL season. 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,” read a statement Sunday from Dana Walden and Alan Bergman, Co-Chairmen, Disney Entertainment, and Jimmy Pitaro, Chairman, ESPN. “We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that’s what our viewers expect and deserve. We urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”
ABC stations not owned by Disney are hearing from upset consumers who received the network via vMVPD service DirecTV Stream. Some, like Hearst-owned Oklahoma City affiliate, are running statements to let consumers know that they are not involved in the blackout. “To be clear, we have not ‘blacked out’ our station. Neither KOCO nor Hearst, the station’s parent company, is involved in the discussions between DirecTV and The Walt Disney Company and do not control KOCO’s continued carriage on the service. We hope the parties can conclude their negotiations as soon as possible, in order to restore our programming to our respective viewers and customers,” the station’s website said.