Channels owned by media giant Disney, including the ESPN sports network, have gone dark on cable TV carrier DirecTV after the two failed to agree on a new carriage deal.
Disney-owned ABC, its ABC affiliate networks, ESPN, and others were all removed from DirecTV on Sunday (September 1) after the previous carriage deal between the two expired, plunging millions of households into a Disney broadcast blackout amid the onset of the college American football season and the final week of tennis’ US Open grand slam major, both of which it holds rights for.
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DirecTV and Disney have each issued statements blaming the other for the failure to come to what would have been a multi-billion-dollar licensing renewal.
Through ESPN, Disney released a bold statement placing the blame squarely on the cable carrier, asserting that “DirecTV chose to deny millions of subscribers access to our content.”
The broadcaster did say it is still open to a resolution to bring its channels back to DirecTV, but only on its terms, stating: “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.”
DirecTV took a decidedly different view of the negotiations, effectively accusing the media giant of attempting to strongarm it into an anti-competitive and anti-consumer deal.
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By GlobalDataIn its statement, DirecTV said that Disney was “demanding that customers from DirecTV and other TV distributors be forced to pay for channels they don't watch, and demanding DirecTV customers pay for access to Disney-owned streaming services they either aren't interested in or may already possess.”
In addition, the broadcaster added: “Just hours before today's expiration, Disney demanded that to reach any licensing agreement or to extend access to its programming, DirecTV must agree to waive all claims that Disney's behavior is anti-competitive.”
This dispute is the latest flashpoint in the war between the Venu Sports joint-venture (JV) partners and the coalition of cable carriers and TV services in opposition.
Disney, alongside Fox Corp and Warner Bros. Discovery, is a joint partner in the proposed combined sports streaming service that took a major blow last month (August 19) when Judge Margaret Garnett of the New York Southern District Court blocked Venu’s launch.
Garnett upheld claims from internet TV service Fubo that Venu would limit consumer choice, enable price gouging, and impinge on the ability of Venu’s rivals to do business in a competitive fashion.
DirecTV has supported Fubo in this endeavor and in May, co-signed an open letter to US congressional representatives urging hearings into Venu Sports and pay-TV competition due to the JV partners’ conduct.
This has led over into its own carriage dispute now, with DirecTV also alleging that Disney stipulated in its negotiations that “any future lawsuits resulting from DirecTV/Disney licensing agreements would be adjudicated in California – and not New York – because – as Disney counsel specifically stated – SDNY Judge Garnett ‘didn't understand the issues’ when granting a preliminary injunction against Disney's Venu Sports.”
Over 11 million consumers are subscribed to DirecTV.
