Disney-owned channels have been blacked out on DirecTV for the past two days due to a contract dispute, leaving subscribers without access to popular networks like ABC and ESPN. Both companies have shown little willingness to compromise.
DirecTV CFO Ray Carpenter emphasized the fundamental nature of the dispute, noting it isn’t just about minor rate adjustments but about industry-wide changes that could ensure its long-term viability. Carpenter accused Disney of timing the blackout to coincide with major sporting events to maximize disruption for customers, a strategy aimed at pressuring DirecTV during negotiations, according to The Hollywood Reporter.
Disney has countered, arguing that DirecTV chose to deprive millions of subscribers of its content right before significant events like the US Open, and the start of the college football and NFL seasons. In a statement issued by Disney executives, the entertainment giant expressed its commitment to negotiating flexible terms but insisted on a deal that appropriately values its diverse content portfolio.
In a bid to alleviate some customer dissatisfaction, DirecTV is offering $20 credits to affected customers, although they must proactively apply for these through this webpage. AT&T, which spun off DirecTV into a new entity it currently holds a 70% stake in, has been exploring potential sales of this stake, Bloomberg reports.
The possibility of a swift resolution isn’t far-fetched. A similar dispute between Disney and Charter Communications almost a year ago was resolved within eight days. While DirecTV aims to offer smaller, tailored packages of channels, Disney has reportedly rejected such terms. Instead, both parties are locked in a standoff over more flexible, innovative ways to distribute content, according to a Variety summary of Carpenter’s comments.
The American Television Alliance, a lobby group for TV providers, criticized Disney for seeking rate hikes and forcing distributors to carry large bundles of channels, making consumers pay for content they may not wish to access. However, Disney maintains that DirecTV had refused multiple flexible options and that it continues to negotiate in good faith.
Both companies were contacted for further comments, and any major updates will be provided as they become available. More information can be found in the original article on Ars Technica.