Disney Defends Itself as DirecTV Blackout Continues
As millions of DirecTV customers sat down to watch the college football game between USC and LSU last night, they were greeted by an unwelcome sight — a black screen.
Just moments before the big Sunday night matchup kicked off, all Disney-owned channels went dark as DirecTV and Disney’s carriage deal expired.
Photo: Variety
While unfortunate for DirecTV customers, the blackout of Disney stations was not unexpected. The two sides had been attempting to negotiate a new carriage deal for weeks but to no avail.
The Crux of the Issue
The biggest roadblock to a new carriage deal seems to be the kind of packages that Disney will allow.
DirecTV has made it clear that it wants more flexibility in the packages it can offer consumers, including leaner options.
ESPN
“We absolutely have to find our way to offering something smaller and less expensive than what we have today,” Rob Thun, DirecTV’s chief content officer, wrote last week.
Disney Quickly Blamed DirecTV
Shortly after the blackout began, Disney released a blistering statement blaming DirecTV for the outage.
Walt Disney Company
“DirecTV chose to deny millions of subscribers access to our content just as we head into the final week of the US Open and gear up for college football and the opening of the NFL season,” said Dana Walden and Alan Bergman, co-chairmen, Disney Entertainment, and Jimmy Pitaro, chairman, ESPN.
“While we’re open to offering DirecTV flexibility and terms which we’ve extended to other distributors, we will not enter into an agreement that undervalues our portfolio of television channels and programs. We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that’s what our viewers expect and deserve. We urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”
The Disney Defense
In addition to putting the blame on DirecTV, Disney directly appealed to consumers, arguing that the company had an essential package of channels they had invested heavily in.
“The value of Disney’s portfolio is indisputable. More than 90% of DirecTV households watched Disney’s linear programming every month last year. That’s more than 5 billion hours viewed in a single year,” Disney explained.
Photo: Disney
“Disney invests significantly in its content, and is seeking rates that are fair, in line with other providers in the marketplace, and that reflect the value of Disney’s popular and award-winning programming. For example, The Walt Disney Company garnered 183 Emmy® Award nominations this year alone, more than any other entertainment company, and ESPN recently extended its relationship with the NBA and WNBA through 2036, and with the United States Tennis Association (USTA) to remain home to the US Open through 2037.”
Pushing Back on the Narrative
After making the case for the value of its programming, Disney addressed DirectTV’s accusation that the company would not offer more flexible bundles.
Photo: DIRECTV
“DirecTV continues to push a narrative that they want to explore more flexible, ‘skinnier’ bundles and that Disney refuses to engage,” the company said. “This is blatantly false. Disney has been negotiating with them in good faith for weeks and has proposed a variety of flexible options, in addition to innovative ways to work together in making Disney’s direct-to-consumer streaming services available to DirecTV’s customers.”
Photo: Disney
With neither DirecTV nor Disney seemingly willing to back down, an extended blackout could be on the horizon. Hopefully, however, the two sides will come to an agreement soon.
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