• by Wayne Friedman , September 2, 2024

Walt Disney's TV networks have been off the air on DirecTV for two days due to a renewal contract dispute, with 11 million satellite and virtual subscribers now getting this on-air messaging on each channel: “Our contract with Disney, the owner of this channel, has expired. We appreciate your patience while we negotiate to offer you greater flexibility, choice, and value.”

The blackouts have already taken their toll on viewers who are not seeing new-season college football games this past weekend, U.S. Open Tennis (on ESPN), as well as threatening the upcoming start of the NFL season (on ABC and ESPN) next week.

DirecTV has voiced its desire for slimmer, more “flexible” network package deals.

Disney channels include ABC, ESPN, Disney Channel, FX, Freeform, Lifetime, National Geographic, as well as equity ownership in A&E Networks (A&E, Lifetime, History).

Rob Thun, chief content officer of DirecTV, in a statement also voiced concern about programming content and resources moving to streaming platforms from traditional live, linear TV networks.

“Consumer frustration is at an all-time high as Disney shifts its best producers, most innovative shows, top teams, conferences, and entire leagues to their direct-to-consumer services while making customers pay more than once for the same programming on multiple Disney platforms,” the statement said. 

He added: “They want to continue to chase maximum profits and dominant control at the expense of consumers –-- making it harder for them to select the shows and sports they want at a reasonable price.”

In response, Walt Disney executives --- in a joint statement from  Dana Walden and Alan Bergman, Co-Chairmen, Disney Entertainment, and Jimmy Pitaro, Chairman, ESPN  -- said:

“DirecTV chose to deny millions of subscribers access to our content just as we head into the final week of the U.S. Open and gear up for college football and the opening of the NFL season.”  

“While we're open to offering DirecTV flexibility and terms which we've extended to other distributors, we will not enter into an agreement that undervalues our portfolio of television channels and programs. We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that's what our viewers expect and deserve.”

A year ago, Charter Communications -- the biggest legacy pay TV distributor with 13 million subscribers -- struck a slimmed down network carriage deal with Disney that dropped channels such as Freeform and also allowed Charter to package and sell Disney streaming platforms such as Disney+ and ESPN+.