NEWS: Millions of Subscribers Lose Access to Networks as Disney and DirecTV Negotiations Fall Through

Disney4me · September 2

The Walt Disney Company is the owner of networks such as ABC, ESPN, and Freeform, all of which may be included in cable network lineups.

Walt-disney-company-studios-burbank-team

©The Walt Disney Company

These networks are provided through cable providers such as Dish Network, DirecTV, and others via distribution deals Disney has with each company. However, the latest distribution deal fell through with a major U.S. provider, and the results caused blackouts of the Disney channels for millions of consumers.

On Sunday, Disney removed its ABC stations, ESPN, and other networks from DirectTV’s programming lineup, according to CNN. This caused these major channels to go dark as major sports seasons began including the NFL season. The two companies, Disney and DirecTV, had been working on an agreement for the networks but it expired before a new agreement could be made causing Disney-owned channels to blackout.

©ABC

Ron Thun, chief content officer at DirecTV, said in a statement, “The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system. 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.”

©DirecTV

The blackout of Disney-owned networks affected over 11 million DirecTV subscribers ahead of kickoff for a college football game, in the middle of the US Open tennis tournament, and just days before the NFL season opener.

Disney representatives Dana Walden, Alan Bergman, and ESPN Chairman Jimmy Pitaro commented, “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. We urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”

©ESPN

Disney stated that the rates they were asking for from DirecTV were in line with those they ask of other providers and are at value of its networks. According to a Disney spokesperson, DirecTV has sought “unreasonable” discounts. However, DirecTV shared that Disney had demanded the carrier waive all “future legal claims that its behavior is anti-competitive.”

©ESPN

“Unfortunately, while [direct-to-consumer] offerings have evolved, pay TV packages have remained largely unchanged,” Thun said. “Instead of allowing distributors like DirecTV to also develop smaller, more tailored packages at prices that reflect the value they get from the content, programmers have continued to impose and enforce strict bundling requirements through exorbitant minimum penetration rates – the minimum proportion of a distributor’s subscribers required to access a channel.”

©Disney

This collapse came shortly after Disney had been working to create a sports streaming package with Warner Bros. Discovery and 20th Century Fox. However, Venu was blocked by a judge due to a likely violation of antitrust laws.

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