Editor’s Note: This story has been updated to include a comment from a Disney spokesperson.
The ongoing feud between pay-TV provider, DirecTV, owned by AT&T Inc. T, and TPG Capital and Walt Disney Co. DIS over a new carriage agreement has taken a new turn.
What Happened: On Saturday, DirecTV lodged a complaint against Disney with the Federal Communications Commission, accusing the mouse house of “bad faith” negotiations.
The DirecTV-Disney dispute is a carriage fee negotiation, which has been ongoing for two weeks. It has led to a blackout of Disney channels, including ESPN and ABC-owned stations in nine markets, on DirecTV since Sept. 1.
DirecTV alleges that Disney is breaching the FCC's good faith mandates by demanding it waive any legal claims on anticompetitive actions, including its ongoing packaging and minimum penetration demands.
Disney, however, insists that mutual release of claims is a standard practice after licensing agreements are negotiated and agreed upon. A Disney spokesperson urged DirecTV to prioritize their customers by finalizing a deal that would restore access to their content, reported the Associated Press.
"We continue to negotiate with DirecTV to restore access to our content as quickly as possible. We urge DirecTV to stop creating diversions and instead prioritize their customers by finalizing a deal that would allow their subscribers to watch our strong upcoming lineup of sports, news and entertainment programming, starting with the return of Monday Night Football,” said a Disney spokesperson in an emailed message to Benzinga.
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Why It Matters: The blackout has impacted DirecTV’s 11.3 million subscribers, barring them from watching most college football games and the final week of the U.S. Open tennis tournament.
DirecTV subscribers could also be missing the presidential debate between Donald Trump and Kamala Harris scheduled for Sept. 10. 2024 at 9 pm EDT.
This development follows DirecTV's shift to a streaming model, removing the need for a satellite dish to access its content. The company has been marketing its pay-TV package, which no longer requires a satellite dish.
Meanwhile, Disney reported solid third-quarter earnings last month, posting a 4% year-over-year revenue increase to $23.16 billion, fueled by subscription revenue growth from price hikes and an expanding Disney+ Core customer base.
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Image via DirecTV
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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