Disney and DirecTV Resolve Blackout, Restore Service to Subscribers

Disney and DirecTV Reach Agreement to Restore Service

On Saturday, Disney and DirecTV announced a significant agreement that will restore access to popular channels such as ESPN and ABC for DirecTV subscribers. This resolution comes after a two-week blackout that had left many of the satellite TV provider’s 11 million customers unable to view key programming, including Monday Night Football and the U.S. Open tennis tournament, while both companies negotiated a new distribution agreement.

The deal was finalized just in time to re-engage viewers eager to watch college football on ESPN and the Emmy Awards, which are set to air on Sunday on Disney’s ABC network. In a joint statement, the companies emphasized their longstanding partnership, stating, “DirecTV and Disney have a longstanding history of connecting consumers to the best entertainment.” They further added that the new agreement highlights the “tremendous value of Disney’s content” while also accommodating the evolving preferences of DirecTV customers.

One of the primary points of contention during the negotiations was whether Disney, which significantly invests in programming for its Disney+ streaming service, could continue to demand high fees for traditional TV content. DirecTV contended that Disney was not adequately considering its traditional TV audience by expecting the same financial compensation for what amounted to less content.

Under the terms of the newly established agreement, Disney’s streaming services, including Disney+, will be available to DirecTV customers as part of select packages. This type of compromise has become increasingly common in recent cable negotiations, with similar arrangements made between Disney and the cable company Charter, as well as with Warner Bros. Discovery.

The conflict between DirecTV and Disney highlighted the challenging economic landscape faced by satellite TV networks, particularly as they lack the added revenue streams that broadband internet services provide, making it more difficult for customers to justify remaining loyal.

As part of the agreement, DirecTV customers will also regain access to additional Disney channels, including the Disney Channel, Freeform, the FX networks, and National Geographic channels. Although the finalization of the contract is still underway, service was successfully restored to DirecTV customers on Saturday morning.

The agreement with Disney comes at a pivotal moment for DirecTV, as there are reports suggesting that the company is exploring a much larger deal that could reshape its future. Earlier this week, Bloomberg revealed that DirecTV is in negotiations to merge with Dish, another satellite TV provider, which could potentially create a formidable satellite TV conglomerate.