DirecTV and Disney have reached a new distribution contract, ending a two-week blackout that affected DirecTV subscribers’ access to ABC, ESPN, and other Disney-owned channels. The companies announced they had arrived at an agreement in principle, and Disney’s full suite of linear networks has now been restored to DirecTV, DirecTV Stream, and U-verse customers.
Previously, Disney had accused DirecTV of undervaluing its content, while DirecTV sought the flexibility to sell more customized channel packages. The joint statement offered a resolution that proclaims greater choice, value, and flexibility for mutual customers.
The new deal will ensure the availability of networks such as ABC and ESPN, as well as Disney-branded channels, Freeform, FX Networks, and National Geographic. DirecTV will be able to provide multiple genre-specific options—such as sports, entertainment, and family-inclusive packages—integrating both Disney’s linear networks and streaming services like Disney+, Hulu, and ESPN+.
In what the companies term a “first-of-its-kind collaboration,” online streaming services Disney+, Hulu, and ESPN+ will be included in select DirecTV packages and also made available à la carte. Additionally, DirecTV will acquire distribution rights to Disney’s upcoming flagship direct-to-consumer ESPN service, at no extra cost to its customers.
The blackout and subsequent resolution come as DirecTV continues to experience business declines. Following its merger with AT&T in 2015, DirecTV’s customer base has significantly diminished. Although now an independent entity, the company continues to face challenges in subscriber retention, having lost an estimated 1.8 million customers in 2023 alone.
At a Goldman Sachs investment conference, DirecTV CMO Vince Torres indicated that the company had lost “not an immaterial amount of customers” during the dispute with Disney. This discord was further compounded by DirecTV’s announcement of a price increase, set to take effect on October 6, which has aggravated customers already distressed by the blackout.
The companies have expressed gratitude for their customers’ patience and have restored Disney’s complete network portfolio in time for key events like college football and the Emmy Awards.