Disney and DirecTV face off: Will ESPN and ABC go dark?
The looming blackout
Disney’s array of TV networks, including ESPN and ABC, might vanish from DirecTV as soon as this Sunday if the two giants can’t strike a renewed distribution deal. The clock is ticking, and both sides seem to be miles apart in their negotiations.
DirecTV’s current agreement with Disney is set to expire on Sunday, September 1. Without a new deal or a temporary extension, Disney’s channels could be pulled from DirecTV. This standoff comes at a critical time, with the NFL season about to kick off and ESPN’s “Monday Night Football” returning on September 9.
The negotiation stalemate
Justin Connolly, president of Disney Platform Distribution, expressed frustration over the stalled talks. “We continue to put a number of tangible options on the table, and DirecTV has not engaged in earnest at this point,” he said. ”At the moment, we’re far apart. The focus is on trying to hammer out details, and the ball is in their court.”
DirecTV, on the other hand, is pushing for greater “flexibility” in how it packages Disney’s networks. Connolly mentioned that Disney has proposed various options, including a sports-centric package featuring ESPN and ABC. “We’ve been trying to be flexible with different constructs that DirecTV might be looking for,” he added, referencing Disney’s deal with Charter Communications as a potential template.
The Charter Communications precedent
Disney’s most recent significant carriage renewal was with Charter Communications. The two sides reached an agreement in September 2023 after a 12-day blackout of Disney’s networks on Charter systems. Under this pact, select Spectrum TV customers gained access to Disney+ and ESPN+ at no additional charge. While Spectrum continued to carry major Disney-owned channels, it dropped several others, including Baby TV, Disney Junior, and Freeform.
Connolly emphasized the urgency of the situation: “Our focus at the moment is to try to figure out if we can’t figure out something in the next four days.” He dismissed any claims that Disney hasn’t been innovative or constructive in the negotiations as “blatantly false.”
DirecTV’s vision for the future
A DirecTV spokesperson declined to comment directly but pointed to a blog post by chief content officer Rob Thun. In his post titled “Looking Toward a Brighter TV Future,” Thun outlined DirecTV’s positions, emphasizing the need for “flexible packages” that allow consumers to choose genre-based programming without having to purchase an extensive lineup of channels.
Thun detailed three key points: flexible packages, lower-priced alternatives, and an aggregated experience combining linear and on-demand programming. “At DirecTV, we can smoothly transition to a model that will provide consumers with more choice, control, and value to complement programmers’ DTC offerings,” he wrote.
The shrinking subscriber base
Like other pay-TV operators, DirecTV has seen a significant decline in its subscriber base over the past few years. The satellite TV and streaming service operator had 11.3 million subscribers at the end of 2023, down from a peak of 25.5 million in 2016. DirecTV is majority-owned by AT&T, with a minority stake held by TPG.
Connolly asserted that Disney’s proposed rates are in line with other providers in the marketplace. “Our goal is to resolve this in a way that benefits the Walt Disney Co. and the consumer, where they aren’t caught without access to our content [on DirecTV],” he said.
The Venu controversy
In his blog post, Thun cited Venu—a joint venture formed by Disney, Fox Corp., and Warner Bros. Discovery—as an example of a “genre-based product” that media companies should make available to distributors. However, a federal judge recently issued a preliminary injunction barring Venu’s launch, siding with streaming provider FuboTV’s arguments that the JV was anticompetitive. The three companies have appealed the ruling.
Thun argued that TV distributors should have the same flexibility to thrive alongside DTC services by offering genre-based packages that extend beyond sports to include locals, entertainment, news, family, movies, and others.
The stakes for viewers
For cinema, TV series, and music enthusiasts, this standoff is more than just a corporate tug-of-war. It’s about access to beloved content and the convenience of having it all in one place. Imagine missing out on the latest episode of your favorite series or the big game because of a blackout. The stakes are high, and the outcome of these negotiations will significantly impact how we consume media in the future.
As we await the resolution, one thing is clear: the landscape of TV and streaming is evolving, and both Disney and DirecTV must adapt to meet the changing demands of consumers. Whether this means more flexible packages, lower prices, or innovative new offerings, the future of entertainment hinges on these critical negotiations.
For more information on the latest movies and TV series, check out the trailers for Monday Night Football and other exciting content.