In a dramatic turn of events, Disney-owned channels, including the popular sports network ESPN, were abruptly removed from DIRECTV and DIRECTV STREAM last night. The blackout comes amid accusations from DIRECTV that Disney is attempting to coerce the satellite provider into supporting its claims of not engaging in anti-competitive behavior.
According to DIRECTV, mere hours before the deadline to reach a new licensing agreement, Disney made unprecedented demands. These included requiring DIRECTV to waive all claims of anti-competitive conduct by Disney and to agree that any future legal disputes be adjudicated in California rather than New York. This latter demand stems from Disney’s dissatisfaction with a previous ruling by a New York judge in a case involving Disney’s Venu Sports, according to a statement from DIRECTV.
This hardball tactic by Disney, which effectively seeks to shield the company from any legal repercussions for its allegedly anti-competitive actions, has raised serious concerns with some as DIRECTV says advocacy groups, regulators, and potentially the Department of Justice should be concerned about this.
“The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system,” said Rob Thun, chief content officer at DIRECTV. “Disney is in the business of creating alternate realities, but this is the real world where we believe you earn your way and must answer for your own actions. 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.”
“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,” Thun continued. “Disney’s only magic is forcing prices to go up while simultaneously making its content disappear.” Thun went on to say.
Disney went on to say in a statement to Cord Cutters News that “DirecTV chose to deny millions of subscribers access to our content just as we head into the final week of the US 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. We urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”
The ongoing dispute highlights the growing tension between content providers and distributors in an increasingly competitive media environment. As negotiations continue, the outcome could have far-reaching implications for the future of television and streaming services.