Disney and DirecTV Trade Barbs as Carriage Talks Come Down to the Wire

Disney and DirecTV Trade Barbs as Carriage Talks Come Down to the Wire

As a gamer who’s been through countless battles with buffering, I find myself once again standing at the precipice of a content warzone. The latest skirmish is between Disney and DirecTV, two giants in their respective realms, fighting over the future of our viewing experiences.


This week, there’s a possibility that Disney’s television networks, such as ABC, ESPN, Disney Channel, FX, among others, could become unavailable for DirecTV subscribers. The reason is that negotiations between Disney and DirectTV over the terms of their future partnership are ongoing. These discussions involve significant stakes.

Presently, we find ourselves in a situation that mirrors last year’s, when Disney’s channels suddenly disappeared from Charter Spectrum, the nation’s largest pay-TV provider. Although DirecTV isn’t as massive as Charter (Leichtman Research suggests it had approximately 11 million subscribers at the end of 2023, while Charter boasted 14 million), it is still a significant player in the U.S. pay-TV market and the leading satellite provider. Therefore, the implications are substantial.

Keeping those high stakes in view, the satellite company has suggested a plan to establish “genre-specific” packages that could potentially lead to more compact bundles at prices similar to popular streaming services. This setup would allow consumers to pay for all their programming through a single platform, as expressed by DirecTV’s chief content officer Rob Thun in his recent blog post.

However, in an interview with The Hollywood Reporter, Disney’s head of platform distribution, Justin Connolly, noted that DirectTV hasn’t responded to Disney’s suggestions during their confidential discussions.

“Connolly asserts that there’s an attempt to propagate a story claiming they wish to develop more adaptable, slimmer packages, and that we’ve been unwilling to discuss this. However, he clarifies that this claim is misleading, as negotiations have been ongoing for weeks, and we’ve presented numerous flexible solutions. Yet, they haven’t responded to our proposed options,” Connolly states.

The Disney executive mentioned that Disney has suggested deals comparable to last year’s agreement with Charter, which involves combining their streaming services with traditional TV channels. Additionally, he pointed out that Disney extended an offer to DirecTV to create their own sports-focused service centered around ESPN and ABC, a crucial component in the Venu lawsuit dispute.

In every case, they attempted to provide weak excuses regarding the genre-based boxes, which seems more like an effort to divert attention away from the core problems in the negotiation process, according to Connolly. They keep on spinning these vague ideas, not only publicly but also within the room, and from our point of view, these concepts lack clarity and seem difficult to carry out. This persists as a problem for us.

Additionally, he challenged DirectTV’s portrayal of the conflict as a matter of consumer choice, where DirectTV was represented as one party and the programmers as another.

“Thun stated in his blog that the decrease in Pay-TV subscribers is primarily because we haven’t adapted quickly enough to match consumers’ tastes, not due to external factors. If we don’t make significant changes, costs will keep rising, customer satisfaction will dwindle, and ultimately, the entire system could face negative consequences.”

“Connolly believes they’re attempting to portray DirecTV as a service for the public’s benefit. However, he points out that in truth, DirecTV is more about private equity investments, not a public service for them.”

Time continues to move forward. The deadline for Disney’s agreement is approaching swiftly; it will be here by the end of this very month, leaving only a few days behind us.

“Our main goal is to find a solution that advantages both consumers, DirectTV, and The Walt Disney Company. To achieve this, we encourage them to set aside their debates and collaborate on practical solutions instead. We have approximately four and a half days before the current agreement expires, during which much can change. Our aim is to work together and reach an agreement within this timeframe.”

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2024-08-28 03:55