After a 13-day standoff, Disney and DirecTV have reached an agreement to restore 16 Disney-owned networks, including ABC and ESPN, just in time for major events like Saturday’s college football games and the Sunday night Emmy Awards. This resolution brings relief to more than 11 million DirecTV subscribers who had been missing popular content such as Monday Night Football, U.S. Open tennis, and The Bachelorette finale since the networks went dark on September 1.
Disney, DirecTV Reach Deal That Restores Programming to 11 Million Satellite TV Subscribers https://t.co/u7FXzEnEgw
— Global News Report (@robinsnewswire) September 14, 2024
Beyond simply restoring channels, the deal introduces notable changes that reflect shifting viewer habits in the streaming era. The companies agreed to offer “multiple genre-specific options” for slimmer, more affordable bundles. These packages will focus on categories like sports, entertainment, and kids & family, featuring Disney’s linear networks alongside their streaming platforms Disney+, Hulu, and ESPN+.
Additionally, Disney’s direct-to-consumer streaming services will be available in select DirecTV packages under a wholesale agreement, with the option for subscribers to purchase them à la carte. DirecTV will also gain rights to distribute Disney’s forthcoming flagship ESPN direct-to-consumer service, expected to launch in mid-2025, at no additional cost to its customers. This service rollout is anticipated to be a major development in the media industry as it adapts to new pay-TV dynamics.
Both companies emphasized that this collaboration offers viewers more flexible and personalized content options. “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,” they said in a joint statement.
The timing of this agreement is critical, as Disney was set to broadcast the Emmy Awards, with its shows The Bear and Shōgun poised to dominate the night. A blackout during such a high-profile event would have been awkward for the company.
This is not the first time Disney has been involved in a carriage dispute. Just a year ago, the company had a 10-day standoff with Charter Communications, which ended hours before the kickoff of Monday Night Football. That dispute resulted in Charter dropping certain Disney networks in exchange for integrating Disney+, Hulu, and ESPN+ into its offerings.
DirecTV’s model differs from Charter’s, as it does not offer broadband, wireless, or non-video services. DirecTV relies on its satellite service and U-verse TV, its legacy cable platform. The company’s CFO, Ray Carpenter, had acknowledged that this dispute was particularly existential for DirecTV, as it lacks the diversified revenue streams of its competitors. Carpenter suggested that pay-TV operators need to move away from the “bloated” 100-plus channel packages, slimming down to reflect modern viewing habits in the streaming age.
DirecTV on Saturday announced it had reached a deal with Walt Disney Co. that will restore ESPN and ABC-owned stations to its service. https://t.co/I9GjffOnM1
— NBC Bay Area (@nbcbayarea) September 14, 2024
Key Points:
i. Disney and DirecTV have resolved a 13-day carriage dispute, restoring ABC, ESPN, and 14 other Disney networks just before college football and the Emmy Awards.
ii. The agreement introduces new, slimmer channel bundles at lower price points, including genre-specific packages that combine Disney’s linear networks with Disney+, Hulu, and ESPN+.
iii. Disney’s streaming services will be available in select DirecTV packages and on an à la carte basis, along with distribution rights for Disney’s upcoming ESPN direct-to-consumer service.
iv. The deal reflects industry-wide changes as media companies adapt to streaming, moving away from traditional 100-plus channel packages toward more flexible options.
v. DirecTV’s CFO highlighted the existential nature of the dispute, given the company’s reliance on satellite and traditional cable services, unlike competitors offering diversified services like broadband.
RM Tomi – Reprinted with permission of Whatfinger News
