DirecTV and Walt Disney Company failed to reach a new distribution agreement, resulting in DirecTV subscribers losing access to Disney-owned networks like ESPN and ABC.
Disney stated it would not undervalue its portfolio of TV channels and programs, as streaming becomes more popular while cable TV viewership declines. Disney and ESPN expressed willingness to negotiate but not at the cost of undervaluing their content.
DirecTV approached Disney in May seeking changes, but Disney resisted requests for discounts and lower distribution thresholds.
The dispute centers around fees, with DirecTV claiming Disney demands excessive rates, while Disney argues for rates comparable to other major distributors and appropriate compensation due to rising content costs.
DirecTV aimed to offer smaller, more affordable packages, including options without ESPN for non-sports fans.
DirecTV recently transitioned to a streaming service without satellite dishes. The blackout of Disney channels impacts viewers in several markets.
Both companies blame each other, with DirecTV accusing Disney of prioritizing profits over consumers, and Disney emphasizing its willingness to be flexible if its programming value is recognized.
This article was written in collaboration with Generative AI news company Alchemiq
Sources: NYTimes, Reuters, Forbes, The Verge, NYPost, The Epoch Times, Newsmax, Economic Times, Benzinga, WebProNews, Advanced-Television, WhatsOnDisneyPlus, Seeking Alpha, Manager Magazin, Global Banking & Finance.