Satellite TV customers for DirecTV hoping to watch the Monday Night Football season opener on ESPN will have to do so outside the comfort of their homes. Disney pulled all of their properties, including ABC, ESPN, FX, and National Geographic, from DirecTV services on September 1. To apply pressure (and blame), each side has released statements laying blame for the impasse at the other’s feet.
Directv, Disney Trade Statements
According to CNN, Disney Entertainment chiefs Dana Walden, Alan Bergman, and ESPN chief Jimmy Pitaro said in a statement, “DirecTV chose to deny millions of subscribers to our content just as we gear up for college football and the start of the NFL season.” The statement continued on to urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”
DirecTV chief content officer Rob Thune said in his own statement that Disney was “once again refusing accountability to customers [and] distribution partners,” going as far as to say that Disney wants to “chase maximum profits and dominate control at the expense of customers.” In a sign that this is an angle DirecTV intends to pursue, the satellite TV company filed a complaint with the FTC on Saturday, alleging Disney violated the FTC’s good faith negotiation clause by tying “any licensing agreement on DirecTV’s waiving any legal claims on Disney’s past, present, or future anticompetitive actions.”
ESPN Almost Removed Before
This is not the first time Disney has gotten into a programming dispute at the start of football season. Last year, Disney removed their programming from Charter. A deal was reached hours before the Monday Night Football broadcast, which included Disney granting Charter companies access to Disney+ streaming services with their Charter subscription.
It’s unknown whether DirecTV is pursuing a similar deal. It would fit into what Thun described as the need for a “fundamental change” in the industry needs; otherwise, “costs will continue to soar, consumer satisfaction will erode, and the entire ecosystem will suffer.”
Final Thoughts
Disputes between studios and distributors are not new. It took six years for DirecTV to resolve a dispute with Charter Communications over broadcasting rights for the LA Dodgers. That these negotiations can get contentious is not unusual, but escalating to filing complaints to the FTC a week after the programming removal is something new.
Trying to leverage an anti-trust argument against Disney is an interesting play by DirecTV, but it also speaks to the lack of options. Disney controls a significant portion of media properties through their ownership of Marvel, Star Wars, and Fox Studios. Not to mention their ownership of Disney+ and Hulu. In many ways, DirecTV is trying to negotiate with what is essentially a direct competitor. Trying to bring the federal government into the situation seems to be a Hail Mary by the satellite TV company to stop losing millions of subscribers to streaming services.
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