The acrimony between DirecTV and Disney The fight over his contract is getting more heated as the Disney-owned networks' blackout on DirecTV is likely to extend into a second week.
On Saturday, DirecTV filed a complaint with the Federal Communications Commission, alleging that Disney has failed to negotiate in good faith. DirecTV claimed that Disney has violated the Federal Communications Commission (FCC)Disney’s good faith mandates that any licensing agreement be based on DirecTV’s waiver of any legal claims regarding Disney’s “anticompetitive actions,” including its ongoing demands for bundling and minimal penetration.
Disney and DirecTV failed to reach an agreement before the expiration on September 1 of its previous distribution agreementwhich resulted in ESPN, ABC, FX, SEC Network, ACC Network, Disney Channel, NatGeo, Freeform and the rest of Disney’s networks being removed from DirecTV’s schedule. The companies remain far apart in resolving the dispute amid a well-stocked weekend of sports on ESPN and ABC, including college football and the 2024 U.S. Open tennis finals. Additionally, ESPN’s “Monday Night Football” is set to return Sept. 9 with the New York Jets taking on the San Francisco 49ers, and ABC News will host the Sept. 10 debate between Kamala Harris and Donald Trump.
In a statement to Variety In response to DirecTV’s FCC complaint, a Disney spokesperson said: “We continue to negotiate with DirecTV to restore access to our content as soon as possible. We urge DirecTV to stop creating distractions and instead prioritize its customers by finalizing an agreement that allows its subscribers to watch our robust sports, news and entertainment programming, beginning with the return of ‘Monday Night Football.’”
DirecTV’s complaint reads in part: “Negotiations have stalled because Disney insists on bundling and penetration requirements that a New York federal court judge recently found, in the context of the Venu joint venture, to be unlawful, anticompetitive and ‘bad for consumers. ’ Disney wants to force DirecTV to offer a ‘fat package’ that includes Disney’s least desirable programming, while itself offering cheaper, ‘skinny’ packages of programming that consumers want. The Commission has never considered a good faith complaint in these circumstances, and DirecTV may well wish to file one in the future regarding Disney’s conduct.”
The complaint continues: “Along with these anti-competitive claims, Disney has also insisted that DirecTV agree to a ‘clean slate’ clause and a covenant not to sue, both intended to prevent DirecTV from taking legal action with respect to Disney’s anti-competitive claims, which would include filing good faith complaints with the Commission. However, less than three months ago, the Media Office made clear that such a claim itself constitutes bad faith.”
DirecTV blames Disney for the stalemate in negotiations, which has caused its more than 11 million customers to “already miss the first college football games” and “could very well miss the first game of 'Monday Night Football' and, if the impasse continues, the presidential debate, produced and hosted by ABC.”
As for DirecTV's argument about Disney requiring the pay-TV provider to waive legal claims, Disney says that such mutual waiver of claims is standard practice after the parties negotiate and agree to licensing agreements. In fact, according to Disney, the media company has had “clean slate” agreements with DirecTV in all previous renewals, and as such, Disney suggests that it is DirecTV that is not engaging in good faith discussions.
With the blackout, DirecTV satellite subscribers lost access to Disney-owned and operated local ABC stations in Los Angeles, New York, Chicago, Houston, Philadelphia, San Francisco, Fresno, California, and Raleigh, North Carolina. Additionally, subscribers to DirecTV streaming services across the United States lost access to non-ABC-owned ABC-affiliated stations.
In a particularly ill-timed move, DirecTV notified its subscribers last week about price increases which will come into effect on October 6 for all satellite TV and streaming plans.
DirecTV hopes to minimize subscriber cancellations during the blackout by offering customers a one-time $20 credit for the loss of Disney networks, as well as a $30 credit toward Sling or Fubo streaming packages (broadcast by the ESPN suite of networks).
(Pictured above: New York Jets quarterback Aaron Rodgers during the Sept. 11, 2023 game against the Buffalo Bills on ESPN’s “Monday Night Football.”)