ESPN, Disney, ABC Go Dark on DirecTV Amid Contract Dispute

ESPN, Disney, ABC Go Dark on DirecTV Amid Contract Dispute

NEW YORK – Millions of DirecTV customers were left without access to ESPN, Disney, ABC stations, and streaming services like Hulu on Sunday as a contract dispute between the satellite provider and the Walt Disney Co. led to a widespread blackout.

The timing of the blackout was particularly frustrating for sports fans, as it occurred during a busy night of major events. The new college football season was kicking off its first full weekend, and ESPN was broadcasting fourth-round matches at the U.S. Open tennis tournament when the feed was pulled at 7:20 p.m. Eastern Time. The blackout happened just 10 minutes before the highly anticipated football game between No. 13 Louisiana State University and No. 23 University of Southern California, prompting an outcry from viewers on social media.

DirecTV, which serves 11.3 million customers, is the nation’s third-largest pay TV provider, according to Leichtman Research Group. The dispute centers on carriage fees, the payments DirecTV makes to Disney to broadcast its content. This is the second consecutive year that ESPN has gone off the air during the U.S. Open due to a contractual disagreement.

In a statement, DirecTV accused Disney of "taking an anti-consumer approach" by insisting on bundling services in the new agreement. DirecTV is advocating for an a-la-carte subscription model, allowing customers to pick and choose the channels they want, potentially lowering their costs.

"This blackout is part of a broader trend in the media industry, where disputes over subscription models and content distribution have led to numerous blackouts in recent years," said Rob Thun, DirecTV's chief content officer. Thun also criticized Disney for offering an extension to keep the channels on air, but only if DirecTV waived any future legal claims regarding anti-competitive behavior.

"The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system," Thun stated, adding that Disney's demands would make it more challenging for consumers "to select the shows and sports they want at a reasonable price."

Disney responded with its own statement, asserting that it had offered DirecTV the same "flexibility and terms" it has provided to other distributors. "We will not enter into an agreement that undervalues our portfolio of television channels and programs," Disney said.

As negotiations continue, millions of DirecTV customers remain in the dark, hoping for a swift resolution that will restore their access to Disney-owned content.