DirecTV and Disney in Contract Dispute Resulting in Blackout of Channels

DirecTV customers experienced a significant disruption on Sunday as ESPN, Disney, and ABC channels ceased broadcasting due to a contract dispute with their parent company, Walt Disney Co. This blackout occurred during highly anticipated sports events, notably the U.S. Open tennis tournament and the opening weekend of the new college football season.

According to DirecTV, which serves approximately 11.3 million customers, the blackout began at 7:20 p.m. Eastern Time, affecting viewers who were eagerly watching the U.S. Open and those preparing for the football game between Louisiana State University and the University of Southern California.

At the center of the conflict are carriage fees that DirecTV pays to Disney for the right to broadcast its networks. DirecTV has criticized Disney for its “anti-consumer approach,” alleging that it demands bundled services rather than allowing customers to select channels a la carte, which would help reduce costs.

The ongoing dispute reflects broader tensions between media companies and pay TV providers over content distribution. DirecTV’s chief content officer, Rob Thun, stated that Disney’s latest demands hinder consumer choice and affordability.

Disney, on the other hand, believes its channels are valuable and insists on fair compensation for its content. In a statement, Disney remarked it would not agree to terms that undervalue its television channels and programs, emphasizing its investment in high-quality content.

This situation mirrors previous disputes in the industry, indicating a pattern of contractual conflicts leading to service interruptions. The previous agreement between DirecTV and Disney was established in 2019 and has come to an end, allowing for these negotiations to flare up during critical viewing times.