directv disney espn The carriage dispute between DirecTV and Disney has entered its fourth day, with no end in sight as tensions rise over the distribution of Disney-owned networks. The spat centers around pricing, package flexibility, and what DirecTV calls Disney’s attempt to “corner the market for themselves,” leaving DirecTV’s 11 million subscribers in the dark.
Disney’s Proposal: Flexibility or Monopoly?
Disney, led by entertainment co-chairs Dana Walden and Alan Bergman, along with ESPN chairman Jimmy Pitaro, argues that it has offered DirecTV a fair and flexible deal. The proposal includes several package options that would allow DirecTV to tailor offerings to its customers, such as a sports-centric bundle featuring ESPN networks and ABC, and an entertainment-based option that integrates Disney’s linear channels with its direct-to-consumer streaming services. According to Disney, the proposed rates align with deals offered to other distribution partners and reflect the value of its premium content.
“Our priority is to reach a marketplace deal that serves DirecTV and their customers while recognizing the value of our top-quality content,” Disney executives said in a statement.
DirecTV Pushes Back: Accusations of Market Control
DirecTV, however, isn’t buying Disney’s argument. According to DirecTV’s chief content officer Rob Thun, Disney is presenting a “half truth.” While the two companies have agreed on rates, the real sticking point lies in Disney’s attempt to limit flexibility in packaging. Thun claims Disney wants to control major portions of the market by keeping rights to key packages like kids and family content, excluding DirecTV from offering them.
“In the skinnier bundles, Disney is giving themselves most of the control over sports and broadcast, leaving us with minimal flexibility,” Thun told CNBC. “They also gave Charter Communications a better deal, which is different from what they’re offering us.”
DirecTV has accused Disney of pushing anticompetitive behavior and has objected to Disney’s request that they waive all claims to this conduct and move any potential legal action from New York to California.
What’s at Stake: ESPN, ABC, and More
The timing of the dispute couldn’t be worse for DirecTV customers. With major events such as the U.S. Open, the start of college football and the NFL season, and the 2024 Emmys airing on ABC and ESPN, the blackout is hitting subscribers hard. In addition to ESPN and ABC, the dispute impacts channels like FX, Freeform, National Geographic, Disney Channel, and more.
DirecTV subscribers affected by the blackout can request a $20 credit. While the dispute continues, DirecTV’s customers are left with limited options. Disney’s networks remain accessible through other providers like Dish Network, Spectrum, Comcast, and virtual services like YouTube TV and Hulu + Live TV.
The Future of Pay TV and Streaming
Both Disney and DirecTV agree on one thing: the current landscape of pay TV and direct-to-consumer streaming needs to evolve. DirecTV believes there’s a middle ground between traditional pay TV and modern streaming bundles, but they argue Disney isn’t allowing enough flexibility to provide that.
“They just have to give us more flexibility in the rights, and that’s what we’re calling them out on,” said Thun.
As the standoff continues, DirecTV subscribers are left hoping for a quick resolution before missing out on more high-profile programming. For now, the ball is in Disney’s court to strike a balance that works for both sides, especially for the millions of consumers caught in the middle.
