[Source-deadline.com]
A brief but intense distribution dispute between Disney and DirecTV concluded on Saturday as the two companies reached an agreement to reinstate Disney-owned channels, including ABC, ESPN, and FX, to the satellite TV provider.
The dispute, which began on September 1, had left millions of DirecTV subscribers without access to popular Disney channels. The blackout had significantly impacted sports fans, particularly those looking forward to watching NFL games on ESPN’s “Monday Night Football” and the US Open tennis tournament on ABC. Over 11 million subscribers were affected by the outage.
In a joint statement, Disney and DirecTV expressed their gratitude to viewers for their patience and announced the restoration of Disney’s entire network portfolio. The new distribution deal is set to provide customers with additional options, including new packages that bundle the Disney+, Hulu, and ESPN+ streaming services. DirecTV will also be able to offer the upcoming ESPN standalone streaming service to its customers at no extra cost.
Monday Night Football
While many distribution disputes can become contentious, the conflict between Disney and DirecTV was particularly heated. Last week, DirecTV filed a complaint with the Federal Communications Commission, alleging that Disney had engaged in unfair negotiation tactics.
The blackout of ESPN during the season opener of “Monday Night Football” between the New York Jets and the San Francisco 49ers caused significant disruption for many viewers. To mitigate the impact, DirecTV offered its customers incentives to sign up for competing streaming services, such as Sling and Fubo, in order to watch the game.
The resolution of the dispute marks a victory for both companies and their subscribers. The renewed partnership between Disney and DirecTV will provide customers with a wider range of entertainment options and ensure continued access to popular channels.
A brief but intense distribution dispute between Disney and DirecTV concluded on Saturday as the two companies reached an agreement to reinstate Disney-owned channels, including ABC, ESPN, and FX, to the satellite TV provider.
The blackout, which began on September 1, had left millions of DirecTV subscribers without access to popular Disney channels, including those broadcasting college football, the US Open, and “Monday Night Football.” The dispute highlighted the significant value of live sports for both media companies and pay-TV providers.
In a joint statement, Disney and DirecTV announced the restoration of Disney’s entire network portfolio, which includes ABC, ESPN, and other channels. The deal came just in time for college football this Saturday and the Emmy Awards.
The companies had been unable to agree on fees and bundle structures, leading to the initial blackout. DirecTV had sought to offer more flexible, genre-specific bundles, while Disney maintained that DirecTV’s offers did not reflect the value of its networks.
DirecTV customers lose Disney, ESPN channels over contract dispute
Importance of live sports for both media companies
The new agreement includes “market-based terms” for pricing and offers DirecTV customers more options, such as sports, entertainment, and kids and family packages. DirecTV will also be able to offer Disney’s streaming services, including Disney+, Hulu, and ESPN+, as part of its packages or a la carte. Additionally, DirecTV has secured the rights to distribute Disney’s upcoming ESPN flagship streaming service at no extra cost to its subscribers.
The inclusion of Disney’s streaming services echoes a similar carriage agreement reached between Charter Communications and Disney last year.
The blackout had underscored the importance of live sports for both media companies and pay-TV providers. Both sides accused the other of holding up an agreement, with DirecTV calling Disney anti-consumer and ESPN Chairman Jimmy Pitaro criticizing DirecTV’s responses to Disney’s package offers.
