Disney has imposed a blackout on ESPN, ABC, and other channels for DirecTV subscribers after negotiations failed to secure a new distribution agreement, affecting roughly 11 million DirecTV users.
This action took place on Sunday, during ESPN’s broadcast of the US Open tennis tournament, which was cut short as Disney pulled its networks following the expiration of a deal originally made in 2019. The timing of the blackout, just before the NFL season opener, has intensified the impact on viewers.
DirecTV Criticizes Disney’s Content Strategy
The two companies are pointing fingers at each other over the breakdown in negotiations. Rob Thun, DirecTV’s chief content officer, criticized Disney in a statement, accusing it of ignoring accountability to consumers, distribution partners, and the American judicial system. Thun argued that Disney is primarily focused on maximizing profits and maintaining dominant control, which, according to him, comes at the expense of consumer choice and reasonable pricing. DirecTV also claims that Disney demanded a waiver of all claims that its behavior is anti-competitive as a last-minute condition for reaching an agreement.
Additionally, DirecTV criticized Disney for directing its top programming to streaming platforms such as Hulu and Disney Plus, while filling ABC’s schedule with less expensive content, such as game shows, unscripted spinoffs, and reruns of older shows.
Disney Stands Firm on Premium Pricing
On the other side, Disney attributes the blackout to DirecTV’s decision to reject the terms offered. Disney asserts that its programming commands a premium value, which it believes DirecTV is unwilling to pay.
Disney representatives Dana Walden and Alan Bergman, co-chairmen of Disney Entertainment, along with Jimmy Pitaro, chairman of ESPN, defended their position, stating that they are open to offering flexibility similar to what has been provided to other distributors. However, they emphasize that they will not accept a deal that undervalues their portfolio of channels and programs, which include major brands in entertainment, news, and sports.
Disney has urged DirecTV to make a decision in the best interest of its customers by finalizing a deal that would restore access to the affected programming.
Disney’s History with Carriage Disputes
This conflict echoes a similar carriage dispute from the previous year when Disney pulled its channels from Charter’s Spectrum subscribers, also during the US Open. That blackout lasted 12 days before a new agreement was reached, which restored channels like ABC and ESPN and provided Spectrum TV Select and Select Plus subscribers with access to Disney+ and ESPN+.
DirecTV highlighted this pattern in their statement, accusing Disney of engaging in an anti-consumer approach by repeatedly initiating such blackouts to pressure distributors.
