Sources report that DirecTV and Disney are close to reaching an agreement to end the blackout.

Sources report that DirecTV and Disney are close to reaching an agreement to end the blackout.
Sources report that DirecTV and Disney are close to reaching an agreement to end the blackout.
  • An agreement to end the blackout between Disney and DirecTV is imminent, according to sources. It may be finalized as early as Saturday.
  • For about two weeks, DirecTV's customers have been without access to Disney's networks, which means they have missed out on college football, the U.S. Open, and "Monday Night Football."
  • The value of live sports is highlighted by the dispute between media companies and pay-TV providers over the rights to broadcast the games.

According to sources, Disney's ESPN and other channels are close to being added back to DirecTV's lineup, ending a two-week blackout for customers.

The deal could come as soon as Saturday, the people said.

On Sept. 1, Disney's networks were removed from DirecTV due to a disagreement on fees and bundle structures, leaving the company's more than 11 million customers without access to the U.S. Open, college football, and the opening "Monday Night Football" game.

According to sources, DirecTV has been advocating for smaller genre packages that exclude sports, focusing on topics like kids and family. No details about the possible agreement were immediately available.

Representatives for DirecTV and Disney declined to comment.

In the weeks leading up to the dispute and after the Disney networks went dark, DirecTV executives repeatedly requested the option to provide customers with smaller, genre-specific bundles. Disney argued that DirecTV's proposals did not accurately reflect the worth of its networks.

If the agreement is signed, Disney's networks will be available to DirecTV subscribers in time for college football this weekend and the second week of "Monday Night Football," featuring the Atlanta Falcons and Philadelphia Eagles.

The blackout highlighted the importance of live sports for both the media companies that own the rights to broadcast the games and the pay-TV providers that want to air them.

From September 1st, both sides have accused each other of delaying an agreement. DirecTV labeled Disney as anti-consumer, while ESPN Chairman Jimmy Pitaro stated that DirecTV's responses to Disney's package offers were merely hypothetical.

The blackout seems to have caused losses for companies, their customers, and other business owners.

ESPN's Pitaro stated on CNBC last week that blacking out is not beneficial for either side, particularly the customer. Despite their efforts, they never intended to black out.

DirecTV Chief Marketing Officer Vince Torres stated at Goldman Sachs' Communacopia & Technology Conference on Thursday that the amount of customers lost during the dispute was not insignificant.

Torres stated that Disney stopped payments to DirecTV, resulting in a $30 credit for customers during the blackout.

The NFL's "Sunday Ticket" package, which was not affected by the blackout, is still used by many bars and restaurants as a commercial distributor for their TV content, including ESPN.

The blackout on Tuesday affected the presidential debate and prevented customers in certain markets from watching Disney's ABC broadcast network.

Disney attempted to temporarily permit DirecTV to provide ABC to its customers that evening, but the pay TV provider declined. DirecTV considered it a public relations stunt and stated that it was not necessary to air ABC since the debate was also being broadcast on multiple other news networks.

Recently, antitrust concerns have been closely monitored in the media industry, particularly after a judge temporarily blocked Venu, a joint streaming venture between Comcast, AT&T, and Disney, from operating. The suit was initially brought by AT&T, and DirecTV and Dish have since supported it.

Disney did not negotiate in good faith with DirectTV last week, according to a complaint filed by DirectTV with the Federal Communications Commission. The FCC has rules that require broadcast owners to engage in good faith negotiations.

Disney's networks were unavailable to pay TV customers for the second time in a year in September. Despite this, the companies reached an agreement before "Monday Night Football" last year.

The traditional pay-tv bundle has been disrupted by customers' increasing preference for streaming services and other forms of entertainment, resulting in a fragmented media ecosystem. Live sports, particularly ESPN, are seen as the key component holding the bundle together due to their high viewership.

DirecTV is currently running an advertisement campaign to inform customers about its additional streaming service, beyond just being a satellite TV provider.

by Alex Sherman

Business News