DirecTV, Disney continue contract dispute ahead of Monday Night Football: What to know

Posted by Admin September 9, 2024 Football

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DirecTV and Disney continue to work out a contract dispute hours before Monday Night Football between the New York Jets and San Francisco 49ers is set to air on ESPN and ABC.

Millions of football fans may be unable to watch the New York Jets take on the San Francisco 49ers at Levi’s Stadium during ESPN’s Monday Night Football broadcast due to the ongoing dispute between DirecTV and Disney.

DirecTV, which had 11 million subscribers by the end of 2023, enters its second week without ESPN, ABC, the Disney Channel, FX and other Disney-owned networks and channels being available to its customers. The blacking out of the channels stems from the cable service’s five-year contract with Disney ending on Sept. 1.

On Saturday night, DirecTV filed a complaint with the Federal Communications Commission (FCC), accusing Disney of negotiating in bad faith.

“DirecTV and Disney have found themselves in an impasse for a week now,” according to the complaint obtained by USA TODAY. “Millions of Americans have already missed early college football games, may well miss the first Monday Night Football game.”

Here is what to know about the ongoing disagreement between DirecTV and Disney, and how long it could take before an amicable resolution.

Disney working to restore content ‘as quickly as possible’

A Disney spokesperson emailed a statement to USA TODAY on Monday saying, “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 statement continued.

As of Monday afternoon, Monday Night Football will not be watchable due to the back-and-forth, but a DirecTV spokesperson said its subscribers will be able to tune into the presidential debate on Tuesday between Kamala Harris and Donald Trump. C-SPAN, the other major broadcast networks besides ABC, and multiple national news and commentary channels will be simulcasting ABC News coverage of the debate, according to the spokesperson.

Why are contract negotiations between DirecTV and Disney stalling?

Negotiations on a new contract have stalled due to Disney demanding that DirecTV carry out a “fat bundle” that would include “less desirable Disney programming,” thus allowing Disney to offer cheaper and “skinnier” bundles containing programming consumers want, according to the complaint filed to the FCC.

To prevent DirecTV from taking legal action against Disney concerning its “anticompetitive demands,” the media company insisted the cable service agree to a “clean slate provision” and an agreement not to sue, the complaint says.

Disney would have sold its “skinnier bundles” through a proposed joint venture called “Venu,” but a federal judge in New York halted its launch due to it potentially hurting “the wallets of sports-loving consumers by making them pay for non-sports channels they don’t want,” according to the complaint, which quotes the federal judge.

Regarding DirecTV’s allegations, Disney released a statement on Sept. 4 saying, “DirecTV continues to misrepresent the facts around our ongoing negotiations.“

“Our priority is to reach a marketplace deal that serves the needs of DirecTV and their customers while also recognizing the value of our top-quality content and the significant investment required to create and acquire it,” the statement continued. “We believe there is a path to a fair and flexible agreement that strikes this critical balance and works for all sides, especially the consumer.”

Disney provided DirecTV with multiple options

A Disney spokesperson cited Nielsen and told USA TODAY that the company’s “portfolio is indisputable as more than 90% of DirecTV households watched its linear programming every month last year – the highest performing on their platform.”

During negotiations, Disney proposed a variety of packages that align with DirecTV’s cited needs, give their customers “more choice and control” and provide the cable service with the ability to distribute Disney content in the future, according to the spokesperson. The discussed options included a:

Sports-centric option featuring the ESPN Networks and ABC
Entertainment-based option featuring the Disney Entertainment networks
Linear offerings paired with Disney’s direct-to-consumer subscription services

“Disney is asking for rates that are in line with other distribution providers in the marketplace and that reflect the value of Disney’s content,” the spokesperson said.

Disney also said it provided DirecTV with multiple options to connect their platforms to its direct-to-consumer streaming services.

When will DirecTV and Disney agree to a contract?

It is unclear when DirecTV and Disney will agree on terms, but both sides are continuing to work toward a contract nonetheless.

DirecTV chief financial officer Ray Carpenter told analysts in a conference call on Sept. 3 that DirecTV asked Disney to allow viewers to watch the USC-LSU football game on Sunday night, but instead took a “hostile approach to our customers” and called for the blackout.

Despite the dispute, DirecTV said it is “hopeful it can reach a reasonable resolution with Disney,” according to the cable service’s complaint.

DirecTV-Disney blackout: How can subscribers watch ESPN and other sports channels?

Various options remain for subscribers who want to watch upcoming college football and NFL games on ESPN and its networks, including:

ESPN+: You can get a standalone subscription to the streaming service for $10.99 monthly, but ESPN+ does not have access to all of ESPN’s channels or those channels’ programming, according to its website. However, the Sept. 9 New York Jets-San Francisco 49ers game and the ManningCast will be on ESPN+. You can also subscribe to ESPN+ as part of a Disney bundle of services including Disney+ and Hulu, starting at $14.99 monthly. (Watch ESPN+ now)
Fubo: This streaming service, which includes ESPN and local channels including ABC where available, offers a seven-day free trial. After that, it costs $49.99 for the first month and $79.99 per month, subsequently. That basic Pro plan gets you at least 185 live channels including ESPN2, ACC Network Disney, Disney JR., Disney XD, Freeform FX, FXX and National Geographic. The Elite with Sports Plus package ($69.99 first month; $99.99 monthly after that) gets you ESPNU, ESPNews, SEC Network and NFL RedZone. (Watch Fubo with a seven-day FREE trial)
Hulu + Live TV: This Disney-owned streaming service has a three-day trial and starts at $76.99 monthly for more than 95 channels including ESPN, ESPN2, ESPNU, ESPNews, ACC Network, SEC Network, Disney, Disney JR., Disney XD, Freeform FX, FXX, FX Movies, National Geographic, National Geographic Wild. The $76.99 plan also gets you Disney+ (With Ads) and ESPN+ (With Ads). You also get access to the Hulu streaming service, which has original programs including “Only Murders in the Building.” You can pay more to avoid commercials and get additional channels such as NFL RedZone.
Sling TV: Sling Orange (no free trial, $15 for your first month, then $40 monthly) has 35 channels including ESPN, ESPN2 and ESPN3, Disney Channel, Freeform. But sports fans would likely want to add Sling Blue and the Sports Extra package ($45 your first month, then $70 monthly), which gets you as many as 74 channels including ACC Network, ESPNU, ESPNews, the SEC Network, NFL RedZone and local Fox and NBC networks (if available). (Watch Sling TV now)
YouTube TV: The streaming service currently has a “Try 3 weeks free” offer currently on its site. After that, your first four months of the YouTube TV Base Plan is $64.99 per month. That increases to $72.99 in the fifth month. YouTube TV has more than 100 channels including these affected by the blackout ESPN, ESPN2, ESPNU, ESPNews, Disney Channel, Disney Jr., Disney XC, FX, FXM, FXX, Freeform, ACC Network, SEC Network, National Geographic and National Geographic Wild (plus local ABC channels blacked out in 9 cities, too).
Digital antennas: Getting ESPN+ or the Disney bundle isn’t a catchall because the app doesn’t stream every event on ESPN’s liner networks, Ross Benes, senior TV and streaming analyst for eMarketer, told USA TODAY. However, a digital antenna can be used to get ABC and other major networks for free on your digital TV. However, he said, “not only do you have to buy the antenna, you need to mount it near a window or outside, point it toward the direction of the station, hope you are within distance of signal, and hope you don’t have anything blocking your transmission.”