The ongoing dispute between DirecTV and Disney regarding a new agreement for broadcasting rights has intensified as the situation has now stretched into its second week.
This past Saturday night, DirecTV lodged a formal complaint with the Federal Communications Commission (FCC), accusing Disney of negotiating in bad faith.
As a result of the disagreement, channels owned by Disney, such as ESPN and ABC stations in nine different regions, have not been available on DirecTV since the evening of September 1. This blackout has prevented DirecTV customers from watching crucial college football games and the final matches of the U.S. Open tennis tournament, including both the women’s and men’s finals.
DirecTV has a subscriber base of 11.3 million, according to Leichtman Research Group, making it the third-largest pay-TV provider in the United States.
ABC and ESPN are set to broadcast the “Monday Night Football” season opener featuring the New York Jets against the San Francisco 49ers. Additionally, ABC will host a presidential debate between Kamala Harris and Donald Trump on Tuesday in Philadelphia.
The stations owned by ABC in cities like Los Angeles, the San Francisco Bay Area, Fresno, New York, Chicago, Philadelphia, Houston, and Raleigh, North Carolina, are currently unavailable to DirecTV subscribers.
Apart from ESPN channels and ABC stations, several Disney-branded channels, including Freeform, FX, and National Geographic, are also inaccessible.
In its 10-page complaint, DirecTV argues that Disney is not adhering to the FCC’s regulations for good faith negotiations by demanding that DirecTV give up any legal claims related to issues such as anticompetitive behavior, along with ongoing requirements for packaging content and minimum subscriber levels.
DirecTV has proposed offering its customers more affordable and streamlined bundles of channels rather than larger packages that may include content they do not wish to watch. The complaint highlights that “Along with these anticompetitive demands, Disney has insisted that DirecTV agree to a ‘clean slate’ provision and a covenant not to sue. Both of these demands are meant to restrict DirecTV from pursuing legal action, including filing complaints regarding Disney’s anticompetitive actions. However, just three months ago, the Media Bureau clarified that such a request is, in itself, an indication of bad faith.”
During a conference call on Tuesday, DirecTV CEO Ray Carpenter stated that they would not agree to a new carriage deal with Disney unless changes to the bundling system were made. He expressed, “We’re not playing a short-term game. We need a solution that ensures the long-term viability of our video services. Our determination is strong.”
Disney, on the other hand, has maintained that releasing mutual claims is a standard procedure once licensing agreements are negotiated and finalized. This practice has been a part of previous deals with DirecTV.
A spokesperson for Disney commented, “We are actively negotiating with DirecTV to restore access to our content as soon as possible. We encourage DirecTV to focus on their customers and work towards finalizing a deal that enables their subscribers to enjoy our upcoming lineup of sports, news, and entertainment programming, starting with the return of Monday Night Football.”
Last year, a similar standoff occurred between Disney and Charter Spectrum, the second-largest cable TV provider, lasting nearly 12 days before an agreement was reached just hours before the NFL’s Monday night kickoff.
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