Source – latimes.com
Disney Channels Go Dark on DirecTV
On Sunday, Disney’s channels were abruptly removed from DirecTV, leaving millions of subscribers without access to major networks such as ESPN and ABC. This disruption also affected viewers of the U.S. Open tennis tournament, which was broadcast on ABC. As a result, DirecTV’s approximately 11 million U.S. subscribers are now unable to watch ESPN or tune in to ABC’s coverage of significant events, including the ongoing U.S. Open.
This blackout represents the latest in a series of routine disputes between television programming companies and their distributors. Such disputes occur when parties cannot agree on new terms for their carriage agreements, which typically need to be renegotiated every few years. These conflicts often result in service disruptions that inconvenience customers, who are increasingly frustrated with paying for traditional TV services. Historically, these disputes tend to be resolved within a few days, but the timing of these outages, particularly around peak viewing periods like Labor Day, amplifies their impact.
Routine Disputes and Their Implications.
The contracts between TV networks and distributors are often structured to expire during high-interest periods, providing an incentive for both sides to reach an agreement before channels go dark. Disney’s recent dispute with DirecTV is a prime example of this practice, with the outage commencing just before Labor Day, a time when many customers are preparing for a long weekend of relaxation and television viewing.
DIRECTV & DIRECTV STREAM Lose ESPN & Other Disney-Owned Channels As They Fight Over The Future of TV
This latest blackout also reflects broader industry trends. Disney has been embroiled in similar disputes with other TV distributors in the past. A notable example was a year ago when Disney faced a standoff with the Charter cable system. That conflict was eventually resolved with a new agreement that allowed Charter customers to access Disney’s streaming services at a reduced rate. The current issue with DirecTV underscores ongoing tensions as Disney continues to invest heavily in its streaming platforms like Disney+ while negotiating with traditional TV distributors over high programming fees.
Statements from Disney and DirecTV
In response to the outage, Disney has criticized DirecTV for offering what it deems an insufficient amount for its programming. Disney’s statement, issued by Dana Walden and Alan Bergman, co-chairmen of Disney Entertainment, and Jimmy Pitaro, chairman of ESPN, emphasized the company’s substantial investment in providing top-tier entertainment, news, and sports content. They urged DirecTV to prioritize their customers’ interests and finalize a deal to restore the programming promptly.
Conversely, DirecTV’s Chief Content Officer, Rob Thun, accused Disney of prioritizing its streaming services while demanding higher prices from distributors. Thun’s statement suggested that Disney’s current strategy involves increasing costs for traditional TV providers while promoting its streaming platforms. Thun remarked, “Disney’s only magic is forcing prices to go up while simultaneously making its content disappear,” reflecting the ongoing tension between the two companies over financial terms and content distribution.
