This past weekend, Disney’s suite of channels, including ABC, National Geographic, FX and ESPN, were blacked out on DirecTV as the five-year contract between the two companies expired, and neither party has been able to agree on a new deal to keep Disney’s linear channels available.

Last year, Disney and Charter Communications entered into a carriage dispute, which saw Disney’s channels removed from Spectrum TV, only for a deal to be finalised before the first game of Monday Night Football.  As part of the new deal, Disney removed some of the channels available, such as Freeform, Nat Geo Wild and Disney Jr, in exchange for Spectrum customers to get access to the ad-supported version of Disney+.

Unfortunately, this carriage dispute has become more heated following the recent court case that resulted in the temporary blocking of the launch of the new sports streaming service, Venu Sports.  DirecTV has been very vocal about how it feels cable television needs to drastically change and wants to offer more choices to its customers, while Disney has stated that it has offered some alternative options, similar to those offered to Spectrum last year.

However, earlier this week, DirecTV held a conference call and once again put Disney on blast for not being willing to come to an agreement, since they feel Disney is more focused on its streaming business and not investing in its linear channels the same way. 

Disney has released a new statement regarding its dispute with DirecTV, saying:

DirecTV continues to misrepresent the facts around our ongoing negotiations. Our priority is to reach a marketplace deal that serves the needs of DirecTV and their customers while also recognizing the value of our top-quality content and the significant investment required to create and acquire it. We believe there is a path to a fair and flexible agreement that strikes this critical balance and works for all sides, especially the consumer.

• Content Investment and Value of Portfolio
  • The value of Disney’s portfolio is indisputable as more than 90% of DirecTV households watched its linear programming every month last year – the highest performing on their platform (according to Nielsen). 
  • Disney continues to meaningfully invest in its linear channels and almost all linear content is exclusive to or premieres on Disney’s networks including live sports and events.

• Flexible Packaging and Participation in Future DTC Offerings
  • As part of the negotiations, Disney has proposed a variety of packages that align to DirecTV’s cited needs, give their customers more choice and control, and provide DirecTV with the ability to participate in future opportunities to distribute Disney’s content. For example:
    • Sports centric option featuring the ESPN Networks and ABC
    • Entertainment based option featuring the Disney Entertainment networks
    • Linear offerings paired with Disney’s direct-to-consumer subscription services 
• Fair, Marketplace-based Rates
  • Disney is asking for rates that are in line with other distribution providers in the marketplace and that reflect the value of Disney’s content. 

• Seamless Linear and DTC Experience 
  • Disney has provided DirecTV with multiple options to connect their platforms to our direct-to-consumer streaming services.

Roger’s Take:  The cable television business is in decline, with fewer subscribers each day, as more and more people shift to streaming as their main way of watching television.  DirecTV is trying to come up with a way of staying in business, but the reality is that major studios like Disney no longer need cable television to reach their customers, with the explosion of streaming services like Hulu and Disney+, and the existence of online cable-like options such as YouTube TV.    This latest statement puts out the idea that Disney has offered some alternative options to DirecTV, including access to Disney+, so it can’t be accused of not making any movement.

With the Monday Night Football deadline fast approaching, DirecTV states it won’t bend the knee to Disney and feels this is a fight worth having to “help” its customers. However, each day this dispute goes on, more people will cancel and move to other services.   Cable needs to evolve, or else it could become the next Blockbuster!

What do you think of the ongoing dispute between Disney and DirecTV?  Let me know on social media!

Roger Palmer

Roger has been a Disney fan since he was a kid and this interest has grown over the years. He has visited Disney Parks around the globe and has a vast collection of Disney movies and collectibles. He is the owner of What's On Disney Plus & DisKingdom. Email: Roger@WhatsOnDisneyPlus.com Twitter: Twitter.com/RogPalmerUK Facebook: Facebook.com/rogpalmeruk

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