Disney and DirectTV reach an agreement to reinstate ABC, ESPN, and other channels
DirectTV stopped broadcasting channels owned by Disney starting September 1, leaving out sports enthusiasts from watching NFL games on ESPN's "Monday Night Football" and US Open tennis matches on ABC. Over 11 million subscribers experienced a disconnection from these Disney stations due to the disagreement.
The companies released a joint statement, expressing gratitude to those impacted viewers for their understanding and announced the restoration of Disney's entire network portfolio before the college football season and Emmy Awards weekend.
The renegotiated deal will introduce new options for customers, such as packages incorporating Disney+, Hulu, and ESPN+ streaming services, with DirecTV gaining the rights to distribute the forthcoming ESPN standalone streaming service free of charge to its customers.
The companies expressed their appreciation for customer patience throughout the challenging yet essential negotiations, emphasizing the improved choices and flexibility within an integrated entertainment experience.
Such distribution disagreements can often turn sour, but this particular one was intense. Last week, DirectTV filed a petition with the Federal Communications Commission, alleging Disney acted uncooperatively during negotiations.
As a result, DirectTV customers missed out on watching the first "Monday Night Football" match of the season between the New York Jets and San Francisco 49ers, two teams in prominent markets that were blacked out on ESPN. In an attempt to convince customers to stay aboard, DirectTV entered partnerships with Sling, a subsidiary of rival satellite provider Dish Network, and Fubo to offer its customers credits and discounts to subscribe to competing streaming services, enabling viewers to catch the game.
This situation is still evolving and will be updated.
Despite the temporary disruption, many businesses saw an opportunity in this situation. For instance, streaming service providers noticed a surge in new subscriptions during this time, as DirectTV customers sought alternatives to watch their favorite Disney content.
Moreover, DirectTV's partnerships with Sling and Fubo demonstrate that businesses in the entertainment industry are willing to collaborate to meet consumer needs, even in the midst of commercial disputes.
