DirecTV and Disney Dispute Leaves 11 Million Without ESPN and ABC

The Walt Disney Company and DirecTV, a major US satellite TV provider, have failed to secure a new distribution agreement for ESPN, ABC, and other Disney networks. Consequently, more than 11 million DirecTV subscribers across the US have lost access to these channels as of September 1st.

This contract dispute arises as the US Open concludes, just before the new NFL season begins, and ahead of ABC News' upcoming presidential debate on September 10th. DirecTV subscribers trying to access a Disney-owned channel now encounter a message stating: “Our contract with Disney, the owner of this channel, has expired. We appreciate your patience while we negotiate to offer you greater flexibility, choice, and value.”

According to Reuters, DirecTV sought to adapt its offerings to modern consumer preferences for streaming by negotiating a new multi-billion dollar licensing agreement. The company aimed to persuade Disney to allow the sale of smaller, lower-priced packages that could exclude ESPN for customers uninterested in sports.

Rob Thun, DirecTV’s chief content officer, criticized Disney, stating: “Disney wants 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.”

In response, Dana Walden and Alan Bergman, Co-Chairmen of Disney Entertainment, and Jimmy Pitaro, Chairman of ESPN, issued a counterstatement: “DirecTV chose to deny millions of subscribers access to our content just as we head into the final week of the US Open and gear up for college football and the opening of the NFL season. 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 programmes. We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that’s what our viewers expect and deserve. We urge DirecTV to do what’s in the best interest of their customers and finalise a deal that would immediately restore our programming.”