The ongoing dispute between DirecTV and Disney over a new carriage agreement has escalated in its second week, with DirecTV filing a complaint with the Federal Communications Commission accusing Disney of negotiating in bad faith. This has resulted in DirecTV customers being unable to access Disney channels, including ESPN and ABC-owned stations in nine markets, since September 1. This blackout has affected the viewing of college football games and the U.S. Open tennis tournament finals.
DirecTV, the nation's third-largest pay TV provider with 11.3 million subscribers, has been impacted by the blackout of ABC and ESPN channels, including the upcoming "Monday Night Football" opener and a presidential debate between Kamala Harris and Donald Trump. Additionally, Disney-branded channels such as Freeform, FX, and National Geographic are also unavailable to DirecTV customers.
The crux of the issue lies in DirecTV's request for the option to provide consumers with cheaper and skinnier bundles of programming, as opposed to Disney's demands for bigger bundles. DirecTV CEO Ray Carpenter has emphasized the need for a new carriage deal that aligns with the long-term sustainability of their video customers. Disney, on the other hand, maintains that mutual release of claims is a standard practice in licensing agreements.
Negotiations between the two companies are ongoing, with Disney urging DirecTV to prioritize their customers and finalize a deal that would allow subscribers to access upcoming sports, news, and entertainment programming. The situation is reminiscent of a similar impasse between Disney and Charter Spectrum last year, which was resolved just hours before the first Monday night NFL game of the season.
As the standoff continues, both companies are facing pressure to reach a resolution that benefits their customers and ensures uninterrupted access to popular programming.