DirecTV and Disney are currently at an impasse on a distribution deal, with DirecTV filing a complaint with the Federal Communications Commission, alleging that Disney did not negotiate in good faith. The complaint states that Disney violated FCC’s good faith mandates by requiring DirecTV to waive any legal claims on Disney’s past, current, or future anticompetitive actions. DirecTV claims that negotiations stalled because Disney insisted on bundling and penetration requirements that were recently found to be unlawful and anticompetitive by a federal district court judge.
A federal judge temporarily blocked the launch of Venu Sports, a joint sports streaming venture from Disney, Fox Corporation, and Warner Brothers Discovery, after Fubo, a sports streaming service, filed a lawsuit against the media giants. This action has affected more than 11 million subscribers as Disney pulled its ABC stations, ESPN, and other cable networks from DirecTV’s lineup. This blackout occurred just before major events like the upcoming presidential debate on ABC, the final rounds of US Open tennis, and the start of the NFL season, including “Monday Night Football”, for which ESPN owns the broadcast rights.
DirecTV subscribers have been blacked out of Disney’s owned-and-operated ABC local stations in major media markets such as New York, Los Angeles, Chicago, Philadelphia, Houston, and San Francisco, as well as smaller markets like Fresno, California, and Raleigh, North Carolina. The blackout also includes ESPN’s suite of channels and other popular Disney-owned networks such as the Disney Channel, Disney Jr., FX, and National Geographic. The blackout is affecting subscribers’ access to a wide range of sports, news, and entertainment programming.
Both DirecTV and Disney have expressed their commitment to negotiating and reaching a deal to restore access to content for subscribers quickly. Disney has urged DirecTV to prioritize its customers and finalize a deal that would allow their subscribers to watch the upcoming lineup of sports, news, and entertainment programming, starting with the return of “Monday Night Football”. This ongoing dispute has caused frustration among subscribers who are missing out on highly anticipated events and programming.
The blackout has had a significant impact on DirecTV subscribers, especially with the opening game for “Monday Night Football” featuring the New York Jets and San Francisco 49ers. In past years, “Monday Night Football” has drawn large audiences, with the first game of the 2023 season attracting 22.64 million viewers, the biggest audience during the ESPN era. The situation is ongoing as negotiations between DirecTV and Disney continue, with both parties working towards a resolution that will allow subscribers to access the content they enjoy.
