Disney, DirecTV Reach Deal To End Blackout On ESPN And ABC Channels

DirecTV and the Walt Disney company have reached an agreement in principle, returning Disney's channels to DirecTV consumers. 

The parties are still working to finalize a new, multi-year contract, according to a joint news release on Saturday from the two companies. The channels, including ESPN, Disney, ABC stations and streaming services including Hulu, been immediately restored. 

The channels have been dark for millions of DirecTV customers since Sept. 1. DirecTV has 11.3 million customers, CBS News previously reported. 

The dispute focused on the carriage fees that DirecTV pays to Disney. DirecTV accused Disney of "taking an anti-consumer approach" by demanding a new deal include bundled services. DirecTV said that it wants to allow customers to choose from smaller bundles of networks when subscribing, so they can lower their costs. 

As part of the core agreement agreed to by both parties, Disney's streaming services Disney+, Hulu and ESPN+ will be included in select DirecTV packages. DirecTV will continue to carry Disney's entertainment, sports and news programs. 

"Through this first-of-its-kind collaboration, DIRECTV and Disney are giving customers the ability to tailor their video experience through more flexible options," the companies said in a joint statement. "DIRECTV and Disney have a long-standing history of connecting consumers to the best entertainment, and this agreement furthers that commitment by recognizing both the tremendous value of Disney's content and the evolving preferences of DIRECTV's customers. We'd like to thank all affected viewers for their patience and are pleased to restore Disney's entire portfolio of networks in time for college football and the Emmy Awards this weekend."

The Cowboys play on ESPN 2 at 11 a.m. and the Sooners play on ESPN at 2:30 p.m.

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Original story below...

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ESPN has gone off the air on a major carrier for the second straight year during the U.S. Open tennis tournament and in the midst of the first full weekend of college football.

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.

Here's How DirecTV Subscribers Can Receive A $20 Credit For Disney Channel Blackout

Millions of DirecTV customers have been blocked from accessing Walt Disney Co.'s networks since Sunday night, with ESPN and other channels pulled during the U.S. Open tennis tournament and as the college football season is kicking off. 

DirecTV says that its customers can get a $20 credit for the blackout, but they'll have to take a few steps to qualify. 

The dispute, which focuses on the so-called carriage fees that DirecTV pays Disney to broadcast its programming, prompted Disney to pull its channels on Sunday night, with the blackout happening 10 minutes before the start of the football game between No. 13 Louisiana State University and No. 23 University of Southern California. 

DirecTV is arguing that Disney is "taking an anti-consumer approach" by demanding that a new deal include bundled services. Instead, the cable and satellite provider wants customers to be able to pick and choose their channels in an a la carte approach. 

Disney, meanwhile, claims that such a deal would shortchange the value of its networks. "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," said Dana Walden and Alan Bergman, co-chairmen of Disney Entertainment; and Jimmy Pitaro, chairman of ESPN, in a joint statement. 

How to get a $20 credit from DirecTV

DirecTV says that its subscribers should go to https://www.directv.com/tvpromise/ for the credit. 

"We're pursuing every avenue to get your station back. To thank you for your patience, until the situation is resolved, we're offering you a bill credit," DirecTV notes. 

You'll have to enter your TV service, such as DirecTV, DirecTV Stream or U-verse, and your zip code. 

Next, the site will prompt you to "Explore Bill Credits." Customers will need to click on whether they subscribe via "DirecTV via satellite" or "DirecTV via Internet." You'll then be taken to another page where you can enter the email address on file for your account.

The $20 credit will be applied in up to two billing cycles, according to the website. 

How long will the blackout last?

It's unclear at this point, although such disputes have become fairly common in recent years. Some providers like DirecTV are seeking more control over the channels they can offer customers, especially as more consumers are cutting the cord and opting for streaming-only services such as Netflix. 

Historically, such blackouts typically can stretch from a few days to several weeks, such as the 10-day carriage dispute between Fox Corp. and Dish Network from Sept. 26, 2019 until Oct. 6, 2019, according to S&P Global. But occasionally they can stretch for years, such as a dispute between The Weather Channel and Verizon that caused a 1,567-day blackout for Verizon customers, S&P Global noted.

For its part, DirecTV says on its credit site that it's likely the dispute will be resolved before "your favorite team" plays a Monday night game. 

"If you're concerned about possibly missing one of your favorite teams in the next few weeks, here's the good news," DirecTV said. "FOX, CBS, NBC and Amazon Prime Video televise most of the NFL action, while ESPN/ABC has one game per week."

It added, "Chances are your favorite team won't play Monday night until later in the season after we've had plenty of time to come to a new agreement."

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AP sports: https://apnews.com/hub/sports