Scott Mlyn | CNBC
Disney Entertainment channels went dark on DirecTV Sunday night after the sides were unable to reach a new carriage agreement.
The move angered some sports fans, who posted their displeasure on social media. And the U.S. Tennis Association wasn’t pleased with another carriage dispute.
ESPN was showing the fourth round of the U.S. Open when it went off the air on DirecTV at 7:20 p.m. EDT.
That was a half-hour before the start of the match between Frances Tiafoe, an American who reached the 2022 U.S. Open semifinals, and Alexei Popyrin, an Australian who eliminated defending champion Novak Djokovic on Friday.
“It is disappointing that fans and viewers around the country will not have the opportunity to watch the greatest athletes in our sport take part in the 2024 U.S. Open due to an unresolved negotiation between DirecTV and Disney, resulting in the loss of access to ESPN. We are hopeful that this dispute can be resolved as quickly as possible,” the USTA said in a statement.
It also happened 10 minutes before the start of the college football game between No. 13 LSU and 23rd-ranked Southern California in Las Vegas.
ABC-owned stations in Los Angeles; the San Francisco Bay Area; Fresno, California; New York; Chicago; Philadelphia; Houston; and Raleigh, North Carolina, also went off DirecTV.
Last year, Disney and Spectrum — the nation’s second-largest cable TV provider — were involved in a nearly 12-day impasse until coming to an agreement hours before the first Monday night NFL game of the season.
DirecTV said Disney offered an extension to keep the channels on the air in exchange for DirecTV having to waive all future legal claims that its behavior is anti-competitive.
“The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system,” said Rob Thun, DirecTV’s chief content officer, in a statement. “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.”
DirecTV has 11.3 million subscribers, according to Leichtman Research Group, making it the nation’s third-largest pay TV provider.
Dana Walden and Alan Bergman, co-chairmen of Disney Entertainment, and ESPN chairman Jimmy Pitaro issued a joint statement urging DirecTV to finalize a deal.
The statement added that “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.”
The impasse comes as networks and distributors continue to be at odds over content. Distributors and subscribers would like to see a model where they can buy channels a la carte instead of subscribing to a bundling package.
Distributors are also frustrated with production companies putting some of their premium programing on direct-to-consumer platforms before they show up on channels. DirecTV cited the miniseries “Shogun” appearing on Hulu before FX.
“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 said. “Disney’s only magic is forcing prices to go up while simultaneously making its content disappear.”
Besides all ESPN network channels and ABC-owned stations, Disney-branded channels Freeform, FX and National Geographic channel went dark on DirecTV.
Original news source Credit: www.cnbc.com
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