Disney-owned channels, including ABC and ESPN, were removed from DirecTV’s lineup on Sunday after negotiations for a new distribution deal between the companies broke down. The blackout occurred during ESPN’s broadcast of the US Open tennis tournament and just before the NFL season opener this weekend.
Additionally, DirecTV alleges that Disney included a last-minute demand to waive all claims of anti-competitive behavior.
Rob Thun, DirecTV’s chief content officer, criticized Disney in a statement, saying, “The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system. Disney is in the business of creating alternate realities, but this is the real world where we believe you earn your way and must answer for your own actions. They want to continue to chase maximum profits and dominant control at the expense of consumers – making it harder for them to select the shows and sports they want at a reasonable price.”
Disney, on the other hand, argues that its channels deserve a premium that DirecTV is unwilling to pay. In a statement on its website, Disney said, “While we’re open to offering DirecTV flexibility and terms which we’ve extended to other distributors, we will not enter into an agreement that undervalues our portfolio of television channels and programs. We invest significantly to deliver the No. 1 brands in entertainment, news, and sports because that’s what our viewers expect and deserve. We urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”
The deal that expired on Sunday was originally negotiated in 2019, according to Reuters. These contracts are often timed to expire during periods of peak viewership to encourage both parties to renegotiate. Carriage disputes like this are common; Disney pulled a similar move last year, blocking its channels for Charter’s Spectrum subscribers during the US Open. That blackout lasted twelve days before a new deal was reached.