The ongoing feud between DirecTV and Disney has escalated with DirecTV filing a complaint against Disney with the Federal Communications Commission (FCC). DirecTV alleges that Disney is engaging in “bad faith” negotiations during their ongoing carriage fee dispute, which has resulted in a blackout of Disney channels for DirecTV subscribers since September 1st. The blackout includes popular channels like ESPN and ABC, impacting 11.3 million DirecTV subscribers. This disruption has already affected access to major events like college football games and the final week of the U.S. Open tennis tournament.
DirecTV claims that Disney is demanding a waiver of legal claims concerning anticompetitive actions, including their current packaging and minimum penetration demands. They argue that this requirement goes against the FCC’s good faith mandates. However, Disney contends that mutual release of claims is standard practice following negotiations and agreements. A Disney spokesperson has urged DirecTV to prioritize its customers and finalize a deal to restore access to their content.
The timing of this dispute is significant, coinciding with DirecTV’s transition to a streaming model and their removal of the satellite dish requirement for accessing content. Meanwhile, Disney recently reported strong third-quarter earnings, boosted by subscription revenue growth from price increases and an expanding Disney+ subscriber base. The outcome of this dispute remains uncertain, but its potential impact on DirecTV subscribers and the future of content distribution is significant.
