Disney-DirectTV Standoff Leaves Millions Without ESPN, ABC as Negotiations Collapse


Last updated: December 4, 2024

In a dramatic turn of events, Disney-owned channels, including heavyweights like ABC and ESPN, vanished from DirecTV’s lineup on Sunday. This blackout, which struck in the middle of ESPN’s US Open tennis coverage and just days before the NFL season kickoff, has left around 11 million DirecTV subscribers in the dark.

Both Disney and DirecTV are pointing fingers, each blaming the other for the impasse that triggered the blackout. The only clear losers in this clash of corporate titans are the consumers who are left without their favorite shows and sports events.

DirecTV is accusing Disney of stifling their ability to offer more tailored channel packages that would better serve consumer preferences.

According to DirecTV, Disney is “herding consumers away” from traditional network TV by funneling content into its own streaming platforms, like Hulu and Disney Plus. To add fuel to the fire, DirecTV claims that Disney introduced a last-minute demand to waive any claims of anti-competitive behavior.

“Disney thrives on creating alternate realities, but here in the real world, accountability matters,” said Rob Thun, DirecTV’s chief content officer. “They’re chasing maximum profits and ironclad control at the cost of consumers, making it harder for them to access the shows and sports they want at a fair price.”

Disney, on the other hand, maintains that its portfolio of channels is worth a premium, which DirecTV is unwilling to pay.
“While we’ve offered DirecTV flexibility, we won’t agree to a deal that undervalues our network of channels and programs,” Disney stated on its website. “We invest heavily to deliver top-tier entertainment, news, and sports because that’s what our viewers expect and deserve. We urge DirecTV to prioritize their customers and finalize a deal to restore our programming immediately.”

The expired deal, struck in 2019, followed the business norm of concluding during peak viewership periods, pushing both sides to the negotiation table. This tactic, while common, often leaves viewers caught in the crossfire. Just last year, Disney pulled a similar move with Charter’s Spectrum subscribers during the US Open, leading to a 12-day blackout before a new deal was reached.

In this ongoing battle of broadcast giants, the real-world consequences are felt most by the millions of viewers who find themselves pawns in a game of corporate chess.

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Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
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LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
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