DirecTV and Disney have finally reached a deal to end their two-week blackout, just in time for the highly anticipated college football season. The blackout, which started on September 1st, left DirecTV’s 11 million customers without access to popular sporting events like the U.S. Open and Monday Night Football. The dispute arose from disagreements over fees and bundle structures.
DirecTV executives had been pushing for the ability to offer genre-specific bundles to customers, and Disney’s networks going dark only intensified their demands. Disney argued that DirecTV’s offers did not reflect the value provided by its networks. However, on Saturday, the two companies announced that they had reached a deal based on “market-based terms” for pricing.
The deal not only brings back Disney’s networks to DirecTV customers but also grants DirecTV the opportunity to offer genre-specific options, including sports, entertainment, and kids and family channels. Additionally, DirecTV will now be able to include Disney’s streaming services, Disney+, Hulu, and ESPN+, in its packages and offer them a la carte. This move echoes a similar agreement between Charter Communications and Disney last year, which was also reached after a blackout.
In a joint statement, DirecTV and Disney called this collaboration a “first-of-its-kind” as it allows customers to customize their video experience through more flexible options. This agreement highlights the growing importance of live sports for both media companies and pay-TV providers. The blackout had led to losses for both sides, and DirecTV revealed that the number of customers lost during the dispute was not insignificant.
The blackout also affected small business owners who rely on DirecTV as a commercial distributor of the NFL’s “Sunday Ticket” package. Many bars and restaurants were unable to offer their usual slate of sports, impacting their bottom line. The blackout even took place during the presidential debate, leaving customers in certain markets without access to Disney’s ABC broadcast network. Disney had requested that DirecTV temporarily offer ABC for that night, but DirecTV refused, calling it a PR play.
This blackout dispute raises important questions about antitrust concerns in the media industry. Recently, a judge temporarily blocked Venu, a joint streaming venture between Warner Bros. Discovery, Fox Corp, and Disney, due to antitrust concerns. DirecTV has supported this decision, along with EchoStar’s Dish, after Fubo TV initially brought the suit. DirecTV has also filed a complaint with the Federal Communications Commission (FCC) accusing Disney of not negotiating in good faith, although the status of the complaint is unclear.
This entire dispute reflects the changing landscape of the pay-TV bundle. With the rise of streaming services and alternative forms of entertainment, the traditional structure of pay-TV has been disrupted. Live sports, particularly ESPN, are seen as the key component holding the bundle together due to their high viewership. In response to this shift, DirecTV has been running an ad campaign to remind consumers that it offers more than just satellite TV – it has a streaming bundle as well.
In conclusion, the resolution of the blackout between DirecTV and Disney is a relief for customers who can now enjoy their favorite sports and TV shows. The deal also highlights the importance of live sports in the media industry and the ongoing challenges faced by pay-TV providers in the evolving landscape of entertainment.
