Disney and DirecTV have finally reached an agreement, ending a 13-day blackout and restoring Disney-owned channels to over 10 million subscribers. The preliminary agreement, announced on September 14th, brings back popular networks like ABC, ESPN, and other Disney properties to DirectTV, U-Verse, and DirecTV Stream customers. This comes as a relief for viewers, especially with key broadcasts like the 76th Emmy Awards and ESPN’s college football games approaching.
The deal allows DirecTV to offer genre-specific packages that include Disney’s linear networks, such as sports, entertainment, and kids & family. Additionally, certain DirecTV packages will feature Disney’s streaming services, including Disney+, Hulu, and ESPN+. This collaboration between DirecTV and Disney aims to provide customers with more flexible options to tailor their video experience.
While no financial details were disclosed, the agreement states that DirecTV’s payments to Disney will be based on “market-based” pricing. DirecTV, with 11.3 million subscribers, is the third-largest pay TV provider in the United States, according to Leichtman Research Group. The blackout, which began on September 1st, left millions of DirecTV customers without access to their favorite programs. To encourage customers not to cancel their subscriptions during the standoff, DirecTV offered $30 credits.
The deal was reached after tensions escalated and DirecTV filed a complaint with the Federal Communications Commission (FCC) against Disney, alleging that the company was negotiating in bad faith. DirecTV claimed that Disney’s demands, including a waiver of legal claims on anticompetitive actions and requirements for larger bundles of programming, violated FCC good faith mandates. DirecTV was advocating for the option to offer smaller, cheaper bundles to cater to consumer preferences.
In response, Disney argued that the mutual release of claims is a standard practice in licensing agreements and has been included in previous renewals with DirecTV. A Disney spokesperson urged DirecTV to prioritize their customers and finalize a deal that would allow subscribers to enjoy upcoming sports, news, and entertainment programming.
Overall, this agreement between Disney and DirecTV not only restores access to popular channels for millions of subscribers but also introduces more flexibility in video packages and streaming services. It highlights the importance of negotiation and finding common ground to meet consumer demands.
