On a fateful Sunday, Disney-owned channels such as ABC and ESPN were suddenly taken off DirecTV’s lineup, leaving roughly 11 million subscribers in the dark. The blackout occurred in the midst of ESPN’s coverage of the US Open tennis tournament, right before the much-anticipated NFL season opener.
As is typical in such situations, both DirecTV and Disney are pointing fingers at each other for the blackout. DirecTV claims that Disney’s shift towards its own streaming services, like Hulu and Disney Plus, is diverting consumers away from traditional network TV. According to DirecTV, Disney even had the audacity to demand the waiver of any claims that its actions are anti-competitive.
The Accusations
Rob Thun, Chief Content Officer at DirecTV, lashed out at Disney for refusing to take accountability for their actions, accusing the media giant of prioritizing profits and control over consumer choice and affordability. On the other hand, Disney contends that their channels are of premium quality and value, and DirecTV is simply unwilling to compensate accordingly.
The contract that expired on the day of the blackout was initially negotiated in 2019, with the intention for both parties to revisit the terms during periods of high viewership. However, these carriage disputes are not uncommon in the industry, as demonstrated by Disney’s similar actions with Charter’s Spectrum subscribers during the previous year’s US Open.
The Impact on Viewers
Ultimately, it is the viewers who are caught in the crossfire of this corporate battle. With the absence of popular Disney-owned channels, DirecTV subscribers are left without access to essential programming, including news, sports, and entertainment. The uncertainty of when the channels will be restored only adds to the frustration of consumers who rely on these services for their daily dose of entertainment.
The DirecTV and Disney blackout serves as a stark reminder of the power struggles that often occur behind the scenes in the media industry. While both companies may justify their actions as being in the best interest of their stakeholders, it is ultimately the consumers who bear the brunt of these disputes. As negotiations continue and tempers flare, it remains to be seen how and when a resolution will be reached to bring back the much-needed programming to DirecTV subscribers.