DirecTV, the US cable TV carrier, has announced the resolution of its contract dispute with media giant Disney, ending the blackout of Disney-owned networks on DirecTV services after almost two weeks.
The “robust” agreement-in-principle was struck on September 14, while a new multi-year deal is formally crafted to give long-term stability to the pair’s broadcast partnership.
Disney-owned ABC, its ABC affiliate networks, ESPN, and others were all removed from DirecTV on 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 and professional American football seasons.
The pair had each blamed the other for the blackout, with ESPN claiming any renewals had to be on its terms, while DirecTV accused the media giant of attempting to strongarm it into an anti-competitive and anti-consumer deal.
On September 10, DirecTV filed a complaint against Disney with the Federal Communications Commission (FCC), accusing it of negotiating in bad faith.
In its 10-page complaint to the FCC, first obtained by the Associated Press, DirecTV said that Disney has been violating the FCC’s good faith mandates by asking it to waive any legal claims on any anticompetitive actions, including its ongoing packaging and minimum penetration demands.
Despite the bitter nature of the pair’s feud and Disney’s seeming refusal to renege on terms, it now seems as if DirecTV has secured what it considers to be favorable terms.
DirecTV had asked Disney for the option to provide consumers with cheaper and smaller bundles of programming, instead of bigger bundles that carry programming some viewers might not be interested in, a request that has now been fulfilled with the new deal seeing DirecTV offer genre-specific and flexible tv options, including a sport specific package.
Speaking on the agreement, a joint statement released by Disney and DirecTV has stated: “DirecTV and Disney have a long-standing history of connecting consumers to the best entertainment, and this agreement furthers that commitment by recognizing both the tremendous value of Disney's content and the evolving preferences of DirecTV's customers.
“We'd like to thank all affected viewers for their patience and are pleased to restore Disney's entire portfolio of networks in time for college football.”
Disney and DirecTV have also agreed on a carriage deal for Disney’s upcoming ESPN direct-to-consumer service, which it says will launch in 2025 and which DirecTV will offer at no extra cost to customers.
