The Walt Disney Co. and DirecTV were unable to come to a new distribution agreement, which resulted in over 11 million DirecTV subscribers losing access to well-known Disney-owned networks like ESPN and ABC.
The blackout, which took effect after the previous contract expired on Sunday, comes just days before the start of the National Football League season and ahead of a scheduled ABC News presidential debate on September 10.
The dispute leaves DirecTV viewers unable to access a range of Disney channels, including FX, National Geographic, and Freeform. When attempting to watch these networks, subscribers are greeted with a message stating that the contract has expired and thanking them for their patience as negotiations continue.
The crux of the dispute centers on DirecTV’s demand for more adaptable and affordable options in reaction to the changing streaming market. For those who don’t watch sports, DirecTV offered options without ESPN in smaller, less expensive packages. Disney, on the other hand, opposed these modifications, citing the necessity to maintain the worth of its extensive channel lineup.
Disney’s demands, according to DirecTV’s Chief Content Officer Rob Thun, would make it harder for viewers to choose the content they want at a fair price. Thun accused Disney of putting profit ahead of consumer choice. Disney countered that they had offered DirecTV terms comparable to those extended to other distributors and would not consent to a deal that undervalued their content. Disney was represented by Dana Walden, Alan Bergman, and ESPN Chairman Jimmy Pitaro.
This year’s blackout coincides with some extremely important sporting events, like the NFL season opener, which is just a few days away. Both businesses are under pressure to come to a deal that will allow millions of subscribers to once again access these networks as talks continue.
