The ongoing carriage fight between DirecTV and Disney may result in DirecTV customers missing the 'Monday Night Football' NFL game.
- Last week, Disney networks, including pay-TV networks like ESPN and FX, were lost by millions of DirecTV customers due to a contract dispute over bundling and fees.
- The blackout may prevent customers from watching the NFL's opening "Monday Night Football" game, in addition to the U.S. Open and college football debut this season.
- According to sources, Disney and DirecTV are unlikely to reach a deal in time for "Monday Night Football."
ESPN's "Monday Night Football" game will not be available to millions of DirecTV customers as the company has not yet reached a deal with network parent as of Monday evening.
Disney's TV networks were removed from DirecTV's lineup on Sept. 1 due to a dispute over fees and bundling. This affected channels such as ESPN, FX, and ABC in certain markets.
According to sources, Disney and DirecTV are unlikely to reach a deal for "Monday Night Football" before the scheduled start time. However, negotiations are ongoing and a deal could be reached as early as tomorrow.
Disney is being labeled as anti-consumer by a satellite and streaming company called DirecTV, which is pushing for the option to create genre-specific bundles, such as kids, entertainment, and news, which Disney opposes.
The U.S. Open and the first full weekend of college football were not visible to DirecTV customers due to the fight.
High media rights deals for live sports have resulted in expensive networks on TV, with ESPN reportedly receiving some of the highest fees from pay-TV companies.
The traditional pay-TV bundle has been held together by sports, but with 4 million pay-TV customer losses this year, according to a recent MoffettNathanson report, this may be changing.
As its latest ad campaign emphasizes its streaming services, DirecTV's ongoing carriage dispute with broadcasters continues.
Rob Thun, DirecTV's chief content officer, stated in a release last week that The Walt Disney Co. is again refusing any accountability to consumers, distribution partners, and now the American judicial system.
A U.S. judge temporarily halted the launch of sports streaming service Venu, a joint venture between Disney and Comcast, during the NFL season due to a lawsuit initiated by internet TV bundle provider Fubo TV and backed by DirecTV and EchoStar's Dish.
The lawsuit contended that Venu posed antitrust issues, and the companies claimed that it would harm their businesses by offering a sports-only package. Pay-TV distributors have argued that they are losing customers at a rapid pace because of high programming costs that have caused the bundle price to increase, making streaming a more affordable option initially.
On Friday, DirecTV informed its customers about ESPN alternatives from competitors and offered a $30 credit.
On Saturday, Disney was accused by DirecTV of failing to negotiate in good faith, prompting DirecTV to file a complaint with the Federal Communications Commission.
Disney has requested that DirecTV sign a "clean slate" provision and a covenant not to sue, in order to prevent DirecTV from pursuing legal action against Disney's anticompetitive demands, which would involve filing complaints with the Commission.
Disney has stated that it is open to providing DirecTV with the same flexibility and terms it has extended to other distributors, but will not enter into an agreement that undervalues its portfolio of television channels and programs.
Jimmy Pitaro, ESPN chairman, stated on CNBC last week that blackouts are not beneficial for either side, particularly the customer. Despite our efforts, it occurred.
Disney stated that more than 90% of DirecTV households watched its channels every month last year, making it the highest performing content on the platform, according to Nielsen. The company also revealed that it has offered various packages to DirecTV and is requesting rates that are comparable to those of other distribution partners.
Last year, the NFL played a significant role in resolving carriage disputes.
In September, Charter and Disney faced a similar conflict that lasted 10 days. Nevertheless, they reached a deal before "Monday Night Football" began, enabling customers to watch the game that night.
Charter had contended that the pay-TV industry was flawed, as content providers such as Disney had shifted a significant portion of their programming to their streaming platforms. In response, Charter advocated for its clients to obtain access to Disney's ad-supported streaming applications, Disney+ and ESPN+, at no additional expense.
In his remarks last week, ESPN's Pitaro mentioned the negotiations that occurred with Charter a year ago.
Pitaro praised Charter on CNBC, stating that they had a clear vision and specific ideas that made the deal challenging to obtain.
The ongoing conflict between DirecTV and Disney has resulted in bitter exchanges between the two corporations, similar to typical carriage disputes.
ESPN reporter Adam Schefter highlighted the Monday matchup between the New York Jets and San Francisco 49ers on social media platform X and mentioned other platforms where DirecTV subscribers could watch the game.
DirecTV also expressed its displeasure.
"Disney aims to create alternate realities, but this is the real world where individuals must earn their way and take responsibility for their actions, according to DirecTV's Thun. Disney's focus on maximizing profits and maintaining control over consumers makes it more difficult for them to choose the shows and sports they want at a reasonable price."
Business News
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