Millions of DirecTV customers may not be able to watch the NFL’s first “Monday Night Football” game on ESPN because the company has yet to reach a deal with the network’s parent company disney as of Monday evening.
Disney’s television network shut down to DirecTV customers on September 1 due to a dispute over fees and bundling. These networks include pay-TV channels ESPN and FX, as well as broadcast network ABC in some markets.
Disney and DirecTV are unlikely to reach a deal on Monday Night Football in time, people familiar with the matter said. However, they added that negotiations were ongoing and the situation could change, with a deal possible as soon as tomorrow.
The satellite and streaming company calls Disney anti-consumer because DirecTV is pushing for an option to create bundles of specific types, such as kids, entertainment and news, but Disney is pushing back.
DirecTV customers were unable to watch the U.S. Open and the first full weekend of the college football season because of the fight.
Live sports continue to attract huge audiences, which in turn attracts massive media rights deals, creating some of the most expensive television networks. ESPN is said to receive the highest fees ever paid by a pay TV company for the network and its sister channels, CNBC previously reported.
Meanwhile, sports have long been considered the glue that binds traditional pay TV together as consumers flock to streaming services. According to a recent report by MoffettNathanson, 4 million pay TV customers have been lost so far this year.
DirecTV’s battle for the wagon comes as its latest advertising campaign emphasizes its streaming options to attract consumers.
“The Walt Disney Company has once again refused to accept any responsibility to consumers, distribution partners and now the U.S. judicial system,” DirecTV chief content officer Rob Thun said in a press release last week.
Last month, a U.S. judge temporarily blocked sports streaming service Venu – Disney, Disney, Fox Corporation and Warner Bros. Discovery – Launching in time for the start of the NFL season. The lawsuit was filed by online TV bundle provider Fubo TV and supported by DirecTV and EchoStar’s Dish.
The lawsuit alleges that Venu has antitrust issues. The companies also argue that Venu will be detrimental to their business as it will offer sports-only bundles. Pay-TV distributors argue they are losing customers fast as streaming was initially the cheaper option and high programming costs caused bundle prices to skyrocket.
live tv Send an alert On Friday, the company offered competitors an alternative to watching ESPN and said it would offer customers a $30 credit.
On Saturday, DirecTV said it had filed a complaint with the Federal Communications Commission, saying Disney failed to negotiate in good faith.
DirecTV said Disney “insists that DirecTV agree to a ‘clean slate’ clause and a covenant not to sue, both of which are intended to prevent DirecTV from pursuing legal action against Disney’s anticompetitive claims, including to the Commission.”
Disney said it was “willing to provide DirecTV with flexibility and terms that we have extended to other distributors,” adding that it “will not enter into agreements that undervalue our television channels and programming portfolio.”
“We don’t want to have a blackout,” ESPN President Jimmy Pitaro said on CNBC last week. “It’s not good for both parties. And certainly not good for the customers. We’re doing everything we can.”
Disney later quoted Nielsen as saying that more than 90% of DirecTV households watched its channel every month last year and that it has the best-performing content on the platform. The company also said it has proposed multiple packages to DirecTV and requested consistent rates with other distribution partners.
The NFL, in particular, is often the reason for settling shipping disputes. The most recent example occurred last year.
Last September, the cable TV giant Chartered Communications Disney went through a similar battle that ended up lasting 10 days. However, Charter and Disney reached an agreement hours before “Monday Night Football” aired, allowing customers to watch the show that night.
Last year, Charter argued that the pay TV business model was broken, noting that programmers such as Disney already made most of their content available for streaming services. In response, Charter urged its customers to get free access to Disney’s ad-supported streaming apps Disney+ and ESPN+.
ESPN’s Pitaro mentioned negotiations with Charter a year ago during his presentation last week.
“While we knew this deal was going to be difficult to get done… I give Charter a lot of credit because they walked into the room and presented a very specific idea,” Pitaro told CNBC. “They had an idea. A vision to be executed.
The dispute between DirecTV and Disney has resulted in a smear campaign between the two companies reminiscent of most horse-drawn wars.
In this case, ESPN reporter Adam Schefter call out Streaming ESPN’s Monday game between the New York Jets and San Francisco 49ers on social media platform X and noting which other platforms DirecTV subscribers can sign up to watch the game.
DirecTV also expressed dissatisfaction.
“Disney is committed to creating alternative realities, but this is the real world and we believe you can make money on your own terms and must be held accountable for your actions,” DirecTV’s Thune said in a press release. “They want to continue to do this at the expense of consumers. “At the expense of maximizing profits and dominating control – making it more difficult for them to choose the programs and sports they want at a reasonable price.”
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