DirecTV Has Filed an FCC Complaint Accusing Disney of Negotiating in Bad Faith
While many had hoped that the carriage dispute between DirecTV and The Walt Disney Company would end before the first Monday Night Football game of the NFL Season, it looks like that will not be the case.
On Saturday, the stalemate between the two companies escalated when DirecTV filed a complaint with the Federal Communications Commission (FCC) alleging that Disney had violated the agency’s good-faith mandates.
Photo: Miriam-Webster
According to DirecTV, Disney wants the television provider to waive its legal claims regarding Disney’s “anticompetitive actions.” The cable service says these actions include Disney’s current packaging demands.
DirecTV’s FCC Complaint
In their recent filing, DirecTV asserted that Disney is trying to force carriers to purchase broad packages that include “less desirable” programming. Meanwhile, Disney’s own offerings are skinnier and give customers more options.
Photo: Variety
Notably, DirecTV pointed to Disney’s recent legal setback with Venu Sports as further evidence of the company’s shifty business strategies.
“The negotiations have stalled because Disney insists on bundling and penetration requirements that a federal district court judge in New York recently found in the context of the ‘Venu’ joint venture to be unlawful, anticompetitive, and ‘bad for consumers.’ Disney wants to force DirecTV to carry a ‘fat bundle’ including less desirable Disney programming — while itself offering cheaper, ‘skinnier’ bundles of programming that consumers want,” DirecTV said in the filling.
Venu
“The Commission has never considered a good faith complaint in these circumstances, and DirecTV may well wish to bring one in the future concerning Disney’s conduct.”
“Along with these anticompetitive demands, Disney has also insisted that DirecTV agree to a ‘clean slate’ provision and a covenant not to sue, both of which are intended to prevent DirecTV from taking legal action regarding Disney’s anticompetitive demands, which would include filing good faith complaints at the Commission,” the complaint continues.
Photo: Disney
“Not three months ago, however, the Media Bureau made clear that such a demand itself constitutes bad faith.”
Disney’s Response
In response to DirecTV’s FCC filing, Disney told Variety that the television provider should focus on coming to a new agreement.
Walt Disney Company
“We continue to negotiate with DirecTV to restore access to our content as quickly as possible. We urge DirecTV to stop creating diversions and instead prioritize their customers by finalizing a deal that would allow their subscribers to watch our strong upcoming lineup of sports, news and entertainment programming, starting with the return of ‘Monday Night Football.’”
The Pressure Mounts
With the aforementioned return of Monday Night Football set to kick off in just hours, and the debate between Donald Trump and Kamala Harris scheduled to take place on ABC tomorrow, pressure on DirecTV to reach a new agreement is going to increase.
Photo: Sporting News
To combat this, DirecTV has begun offering discounts to consumers on alternative streaming options. Disney has retaliated by offering a discount on Hulu + Live TV. Based on the posturing of both entities, a deal does not look imminent.
