DirecTV customers stood at the center of a streaming dispute between DirecTV and The Walt Disney Company, who owns networks like Hulu, ESPN, Disney, and ABC. On Sunday, September 1st, customers could not stream live sports broadcasts, including the U.S. Open tennis tournament and college football.
Disney+
In fact, Disney’s ESPN, ABC, and Hulu stations and services went dark for DirecTV customers on Sunday when Disney pulled its networks from DirecTV due to a contract dispute. Customers were not happy, and we have an update.
DirecTV has a large subscriber base; this popular satellite TV provider has 11.3 million customers, according to CBS News. Customers were impacted when Disney and DirecTV’s agreement expired before a new deal could be made, causing Disney-owned channels to blackout. According to DirecTV’s estimations, a typical subscriber is paying about $270 a year for Disney’s channels since Disney increased its provider fees.
©DirecTV
This isn’t the first time The Walt Disney Company has fought with a cable provider. In 2023, Disney was involved in a contract battle with Charter Communications, again leaving TV subscribers without access to Disney-owned networks while the companies negotiated. But this time, DirecTV’s dispute with Disney could continue for some time. CBS News reported that DirecTV chief financial officer Ray Carpenter explained, “This is not a run-of-the-mill dispute.”
Walt Disney Company Headquarters ©LA Times
For several weeks, it seemed like the two companies were unable to reach an agreement. Ron Thun, chief content officer at DirecTV, released a statement, noting, “The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system. 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. 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’s CFO Ray Carpenter further stated that Disney pushed back on “creating slimmed-down channel bundles that could provide some savings to DirecTV consumers,” per CBS News.
The Walt Disney Company
Disney responded with a statement of its own, explaining that the company extended “flexibility and terms” to DirecTV like it has for other distributors. Disney added that it “will not enter into an agreement that undervalues our portfolio of television channels and programs” and urged DirecTV “To do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”
©Disney
During the blackout, DirecTV offered customers a $20 credit.
UPDATE:
As of September 14th, DirecTV and The Walt Disney Company announced an agreement that promises “greater choice, value, and flexibility to their mutual customers.” Access to Disney’s networks has been restored to DirecTV customers. Disney is working with DirecTV on a new, multi-year contract.
©ESPN
While the deal is still being finalized, an ESPN press release revealed that four key points have already been agreed upon by both parties:
- Continued carriage at market-based terms of Disney’s entertainment, sports, and news programming from its linear portfolio
- The opportunity to offer multiple genre-specific options — sports, entertainment, kids & family within Disney’s linear networks and Disney+, Hulu, and ESPN+
- Disney’s direct-to-consumer streaming services (Disney+, Hulu, ESPN+) will be included in select DirecTV packages under a wholesale agreement and made available on an a la carte basis
- The rights to distribute Disney’s upcoming ESPN flagship direct-to-consumer service upon its launch at no additional cost to DirecTV customers
The companies also issued a statement thanking all affected viewers for their patience during the blackout.
Millions of Subscribers Lose Access to Networks as Disney and DirecTV Negotiations Fall Through
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Frankly, HULU has the worst user interface of any service provider and Disney WILL NOT LISTEN. The support structure for any issue is horrible and nearly impossible to get a human to respond. This is by far not a DISNEY way of doing business. I have to wonder fi their feed into DirectTV is any better.
I don’t use HULU or those other ones owned by Disney because of no show worth watching. We got rid of DirectTV because there was nothing on their stations and we only really watched Disney anyway. I barely watch Disney now, mainly watch Amazon due to some good history shows.