There’s nothing worse than plopping on your couch, grabbing the remote, turning on your TV and…..blank. Nothing’s on the screen!
Well, if you’re subscribed to DirectTV, you’ll, unfortunately, come across this exact issue with a few channels. And there’s a reason for it.
Disney pulled its ABC stations, ESPN, and other cable networks from DirecTV on Sunday after failing to strike a new distribution deal. The breakdown in negotiations between the two companies resulted in Disney-owned channels going dark for more than 11 million DirecTV satellite subscribers.
This blackout happened during the US Open tennis tournament on Sunday night, and just days before the start of the NFL season.
DirecTV’s chief content officer, Rob Thun, didn’t hold back in his response, saying, “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.”
The standoff didn’t just knock ESPN and Disney-owned ABC affiliates off DirecTV, the third-largest pay TV provider in the U.S.; it also caused other networks like FX, National Geographic, and Freeform to get pulled from the service.
Disney Entertainment’s Dana Walden, Alan Bergman, and ESPN Chairman Jimmy Pitaro responded, saying, “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.”
Disney pointed out that the rates they’re asking from DirecTV are similar to what other providers pay and are fair given the value of their entertainment offerings. A Disney spokesperson mentioned that DirecTV was asking for “unreasonable” discounts. On the other hand, DirecTV claimed that Disney demanded they waive all future legal claims regarding anti-competitive behavior to make a deal.
“Unfortunately, while [direct to consumer] offerings have evolved, pay TV packages have remained largely unchanged,” Thun stated in an open letter before the deal fell through. “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.”
Earlier this month, a federal judge temporarily blocked the launch of a new sports-focused streaming service planned by Disney, Warner Bros. Discovery, and Fox Corporation.
Stay tuned as we bring you all the latest updates on any news surrounding Disney and DirecTV’s negotiations.
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