DirecTV subscribers were left in the dark on Sunday night as ESPN, ABC, and Disney channels went off the air due to a contract dispute between DirecTV and Disney. The blackout occurred during a busy night for sports, including the U.S. Open tennis tournament and the first full weekend of college football.
Key Takeaways
ESPN, ABC, and Disney channels went dark on DirecTV on Sunday night.
The blackout happened during the U.S. Open tennis tournament and the first full weekend of college football.
The dispute centers around carriage fees and bundled services.
DirecTV has 11.3 million subscribers, making it the third-largest pay TV provider in the U.S.
Both companies have issued statements blaming each other for the impasse.
The Blackout
The blackout began at 7:20 p.m. ET, just as ESPN was airing the fourth round of the U.S. Open. This was a significant moment as American player Frances Tiafoe was set to play against Australian Alexei Popyrin. The timing also coincided with the start of a college football game between LSU and Southern California.
The Dispute
The core issue revolves around carriage fees that DirecTV pays Disney to broadcast its programming. DirecTV accuses Disney of taking an anti-consumer approach by demanding bundled services, while Disney argues that it cannot undervalue its portfolio of channels and programs.
DirecTV's chief content officer, Rob Thun, criticized Disney for refusing accountability and making it difficult for consumers to select shows and sports at a reasonable price. On the other hand, Disney's co-chairmen Dana Walden and Alan Bergman, along with ESPN chairman Jimmy Pitaro, urged DirecTV to finalize a deal, stating that they have offered flexibility and terms extended to other distributors.
Consumer Impact
The blackout has left millions of DirecTV subscribers frustrated, especially those who were looking forward to watching key sports events. Social media was flooded with complaints from angry viewers. The U.S. Tennis Association also expressed disappointment, hoping for a quick resolution to the dispute.
Historical Context
This is not the first time such a dispute has occurred. Last year, Disney and Spectrum were involved in a nearly 12-day impasse before reaching an agreement just hours before the first Monday night NFL game of the season. These disputes highlight the ongoing tension between networks and distributors over content and pricing models.
Future Implications
The impasse comes at a time when both networks and distributors are grappling with changing consumer preferences. There is a growing demand for a la carte channel subscriptions instead of bundled packages. Distributors are also frustrated with production companies prioritizing direct-to-consumer platforms for premium programming.
DirecTV cited the example of the miniseries "Shogun" appearing on Hulu before FX, as an instance of Disney's anti-competitive behavior. Thun pointed out that consumer frustration is at an all-time high as Disney shifts its best content to its own platforms, forcing customers to pay multiple times for the same programming.
Conclusion
As the dispute continues, millions of DirecTV subscribers remain without access to popular channels like ESPN, ABC, and Disney. Both companies have expressed a desire to resolve the issue, but it remains to be seen how quickly a new agreement can be reached. In the meantime, consumers are left in the lurch, missing out on key sports events and entertainment programming.
Sources
ESPN networks, ABC and Disney channels go dark on DirecTV on a busy night for sports, NBC News.
ESPN and Disney go dark for millions of DirecTV customers amid contract dispute - CBS News, CBS News.
ESPN networks go dark on DirecTV on a busy night for sports – NBC New York, NBC New York.
ESPN networks, ABC and Disney channels go dark on DirecTV on a busy night for sports, The Detroit News.
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