On Sunday, Disney pulled its ABC stations, ESPN, and other cable networks from DirecTV’s lineup after failing to secure a new distribution agreement, leaving millions of sports fans without access as the college football and NFL seasons began. The expired deal caused over 11 million satellite subscribers to lose Disney-owned channels, including ESPN, right before the USC vs. LSU game, mid-way through the US Open tennis tournament, and just days ahead of the NFL season opener.
DirecTV’s Chief Content Officer, Rob Thun, criticized Disney, accusing the company of prioritizing profits over consumers and making it difficult for viewers to access their preferred shows and sports at reasonable prices. The standoff also affected other networks, such as FX, National Geographic, and Freeform.
Disney responded, blaming DirecTV for denying subscribers access to their content during key sports events and asserting that they were open to offering DirecTV the same flexible terms as other distributors. However, they refused to agree to a deal that undervalued their television channels and programs. The company emphasized that the rates they were asking for were fair and consistent with other providers, while DirecTV argued that Disney demanded “unreasonable” discounts and insisted on waiving all future legal claims regarding anti-competitive behavior.
The collapse of negotiations comes as satellite and cable providers push for slimmer, more affordable bundles, allowing consumers more choice in channel selection. DirecTV’s Thun argued that the traditional pay TV packages have not evolved alongside direct-to-consumer offerings and that programmers like Disney enforce strict bundling requirements, driving up costs.
The dispute highlights the shifting landscape in the media industry as companies like Disney increasingly prioritize their streaming services, often bypassing traditional cable and satellite distribution. Thun expressed consumer frustration, noting that Disney’s strategy of moving premium content to its streaming platforms forces customers to pay more for the same programming across multiple platforms.
Disney previously managed to avoid a similar blackout last year by reaching a deal with Charter that included access to Disney’s streaming services, but the current impasse with DirecTV signals ongoing tension as legacy media companies transition from traditional cable bundles to streaming models. Additionally, a recent federal court ruling temporarily blocked the launch of a new sports streaming venture by Disney, Warner Bros. Discovery, and Fox, following a lawsuit from Fubo, a rival sports streaming service, which accused the trio of anti-competitive practices.
