DirecTV and Disney had a dispute that resulted in Disney’s ESPN and other channels being blacked out for roughly two weeks. This impacted more than 11 million DirecTV customers who were left without access to popular events such as the U.S. Open, college football, and the opening game of “Monday Night Football.” DirecTV executives had been pushing for the ability to offer genre-specific bundles to customers in the weeks leading up to the blackout, and Disney stated that DirecTV’s offers did not reflect the value of their networks.
After negotiations, DirecTV and Disney reached a deal that included market-based terms for pricing. This deal allows DirecTV to offer multiple genre-specific options, including sports, entertainment, and kids and family, which include Disney’s traditional TV networks as well as its streaming services like Disney+, Hulu, and ESPN+. DirecTV also gained the rights to distribute Disney’s upcoming ESPN flagship direct-to-consumer streaming service at no additional cost to its subscribers.
The collaboration between DirecTV and Disney was described as a “first-of-its-kind” by the companies, as it gives customers more flexibility in tailoring their video experience through different options. Both parties acknowledged that blackouts are not beneficial for anyone involved, and DirecTV offered customers a $30 credit during the dispute. Small businesses reliant on DirecTV for sports programming were also impacted, with some bars and restaurants missing out on crucial games.
The blackout highlighted the importance of live sports for both media companies and pay-TV providers. DirecTV accused Disney of being anti-consumer, while ESPN’s Chairman referred to DirecTV’s responses as “hypotheticals.” The company lost a substantial number of customers during the blackout, and both sides accused each other of being unreasonable in negotiations. The blackout also occurred during significant events such as the presidential debate, complicating the situation further.
With the shift towards streaming services and alternative forms of entertainment, the traditional pay-TV bundle has been disrupted. DirecTV is trying to adapt to these changes with an ad campaign highlighting its streaming bundle. Disney and DirecTV have resumed their partnership, with DirecTV gaining the ability to offer Disney’s streaming services and ESPN’s future flagship service to its customers. The agreement exemplifies the evolving landscape of media consumption and the importance of flexibility in providing content to viewers.
