DirecTV Reaches Agreement with Disney Following Streaming Blackout That Left Millions Without Access

Recently, millions of DirecTV customers turned their televisions on to discover that they lost access to numerous channels.

Disney and DirecTV were unable to agree on a new distribution deal which has resulted in millions of customers losing access to Disney programming.

The breakdown in negotiations between the two companies resulted in Disney-owned channels, including ABC stations, ESPN, FX, National Geographic, and other networks owned by Disney going dark for more than 11 million DirecTV satellite subscribers on Sunday.

This blackout happened during the US Open tennis tournament on Sunday, September 1st, and minutes before the start of a football game between LSU and Southern California.

DirecTV subscribers did not have access to Disney programming for several days, and many customers expressed their frustration, especially as football season is starting. With the loss of Disney programming, including ESPN, many subscribers considered switching their service provider.

Amid the loss in programming, DirecTV is urged its customers not to switch service providers. DirecTV has taken to X to respond to customers stating that “switching service providers isn’t the answer.”

The company also responded that “The loss of sports, shows, and movies affect the entire industry, including streaming services.”

According to Fast Company, DirecTV has been losing more than 300,000 subscribers every month and it is likely that subscribers would be other providers such as “YouTube TV or Sling as an attractive alternative.”

However, there is some truth to DirecTV’s statements, as these kinds of disputes have affected other service providers too. YouTube TV has also experienced a blackout of Disney programming in 2021 due to not coming to an agreement and Fubo lost Discovery channels earlier this year when failing to come to an agreement.

Additionally, according to News 4 Jax, DirecTV even turned to football conferences to aid in negotiations with Disney. DirecTV sent a letter to SEC commissioner stating, “Fan loyalty is at the core of our mission. We want to offer maximum choice and value by empowering fans to choose the content they want at lower price points, not forcing them to accept a bloated bundle of expensive channels they don’t watch. Instead of digging in their heels and demanding the status quo, we need Disney to work with us to create more flexible options that better serve today’s consumer preferences.”

Disney responded to DirecTV stating that, “DirecTV continues to misrepresent the facts around our ongoing negotiations. Our priority is to reach a marketplace deal that serves the needs of DirecTV and their customers while also recognizing the value of our top-quality content and the significant investment required to create and acquire it. We believe there is a path to a fair and flexible agreement that strikes this critical balance and works for all sides, especially the consumer.”

UPDATE:

On September 14th, DirecTV and The Walt Disney Company reached an agreement, ending the blackout. DirecTV customers can now view Disney’s networks once again. Disney’s new agreement will offer “greater choice, value, and flexibility to their mutual customers,” according to a press release from ESPN.

Four core points have been agreed upon:

• Continued carriage at market-based terms of Disney’s entertainment, sports, and news programming from its linear portfolio
• The opportunity to offer multiple genre-specific options — sports, entertainment, kids & family within Disney’s linear networks and Disney+, Hulu, and ESPN+
• Disney’s direct-to-consumer streaming services (Disney+, Hulu, ESPN+) will be included in select DirecTV packages under a wholesale agreement and made available on an a la carte basis
• The rights to distribute Disney’s upcoming ESPN flagship direct-to-consumer service upon its launch at no additional cost to DirecTV customers

The two companies also issued a joint statement, reading, in part, “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 and the Emmy Awards this weekend.”

In the meantime, we’re always on the lookout for the latest Disney news, so stay tuned for more.

Read more about the negotiations between DirecTV and Disney here!

What do you think about this loss of programming for DirecTV customers? Let us know your thoughts in the comments!

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