Advanced Television

DirecTV drops Disney networks

September 2, 2024

The Walt Disney Company and US satellite TV provider DirecTV have failed to reach a new distribution deal for ESPN, ABC and other Disney-owned networks, resulting in more than 11 million DirecTV subscribers across the US losing access to those networks on September 1st.

The expiry of the prior deal, which was signed in 2019, comes as the US Open draws to an end; just days before the new NFL kicks off; and ahead of ABC News’ scheduled presidential debate on Septembr 10th.

When DirecTV viewers attempt to access a Disney-owned channel, they currently see a message reading: “Our contract with Disney, the owner of this channel, has expired. We appreciate your patience while we negotiate to offer you greater flexibility, choice, and value.”

Reuters reports that DirecTV sought changes in its offerings to cater to consumer tastes in the streaming TV era as part of a new multi-billion dollar licensing agreement. It wanted Disney to allow it to sell smaller, lower-priced packages, including tiers without ESPN for customers who do not watch sports.
Disney wants “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,” said Rob Thun, chief content officer at DirecTV.

A statement from Dana Walden and Alan Bergman, Co-Chairmen, Disney Entertainment, and Jimmy Pitaro, Chairman, ESPN, countered: “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 programmes. We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that’s what our viewers expect and deserve. We urge DirecTV to do what’s in the best interest of their customers and finalise a deal that would immediately restore our programming.”

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