Disney-DirecTV dispute: ESPN and other channels go dark on pay TV system
DirecTV and Disney have reached a stalemate. For viewers, that means ESPN, Disney Channel, FX and several other networks and channels went dark Sunday night.
The two companies have been negotiating a new contract to keep Disney's content on DirecTV's satellite and streaming services, including U-Verse TV, as a five-year contract ended Sept. 1.
Unable to reach a deal, Disney's content went dark on DirecTV, leaving more than 11 million pay-TV subscribers unable to watch ESPN and ESPN2 just as the college and pro football seasons get underway. Other channels lost include ESPN Deportes, ESPNU, ESPN News, ACC Network, SEC Network, Disney Channel, Disney Junior, Disney XD, FX, FX Movie Channel, FXX, Freeform, and the National Geographic channels.
For sports fans, ESPN is broadcasting the U.S. Open tennis championships, which culminates over the next week, and has some major football broadcasts on its schedule including Boston College vs. Florida State at 7:30 p.m. on Monday, Sept. 2. Next week's full slate of games includes Texas vs. Michigan on Sept. 7 and ESPN Monday Night Football kicks off Sept. 9, with the New York Jets vs. San Francisco 49ers.
Sunday night's USC vs. LSU matchup, which began at 7:30 p.m. ET on Sunday, Sept. 1, and at 7:30 p.m. on Sunday, Sept. 1, was blacked out on Disney-owned local stations such as ABC7 Chicago, ABC7 Los Angeles, ABC7 New York, ABC6 Philadelphia, ABC7 San Francisco, ABC11 Raleigh-Durham, ABC13 Houston and ABC30 Fresno.
Also looming for those DirecTV subscribers who get Disney-owned ABC channels: the Sept. 10 presidential debate.
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DirecTV-Disney dispute: ESPN, Disney Channel goes dark
Disney Entertainment co-chairs Dana Walden and Alan Bergman and ESPN chairman Jimmy Pitaro pointed out the bad timing for DirecTV subscribers in a statement sent to USA TODAY.
"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," the statement said. "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."
DirecTV chief content officer Rob Thun said Disney demanded, as part of a deal, that the TV provider waive all future legal claims that its behavior is anti-competitive. That suggests Disney is worried about antitrust concerns, he said.
A federal judge recently halted the launch of a new streaming platform called Venu – a joint venture of Disney, Fox and Warner Bros. Discovery – as possibly anti-competitive. That "first time ever" offering of unbundled sports programming from rival companies could cause "irreparable harm" to sports streaming service Fubo, which brought the lawsuit, the judge said.
DirecTV wants programmers such as Disney to work with them so they can offer "smaller, more tailored packages" that fit with viewers' interests, rather than having them pay for "fat bundles" that include channels they never watch, Thun has said.
"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," Thun said in a statement to USA TODAY. "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."
DirecTV-Disney battle warmed up over the week
As talks between DirecTV and Disney happened in recent days, both sides have made moves to get public opinion on their side.
DirecTV subscribers watching ESPN saw alerts saying, "DirecTV & DirecTV Stream Customers: You Could Lose The ESPN Networks" and urged viewers to visit KeepMyESPN.com to learn more.
On the website, Disney says: "We continuously work with our Cable, Satellite, Telco and Streaming distribution partners to continue to offer fans our networks on their TV channel lineups. Disney Entertainment has a highly successful track record of negotiating with providers of all types and sizes across the country and is committed to reaching fair, market-based rates and terms."
DirecTV created the site UnbundledDisney.com where it says the TV provider is "working with programmers like Disney to provide more choice, control and value to complement streaming services."
What happens next is unclear. Last year about this time, a carriage dispute between Disney and Charter Communications, the parent company of Spectrum Cable, led to a nearly two-week blackout.
As of Sunday night, Thun shared with USA TODAY. "there's nobody in a room talking at this point."
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This article originally appeared on USA TODAY: Disney and DirecTV dispute results in ESPN removed from TV system
