DirecTV Customers in Texas Left in the Dark as WFAA and TEGNA Clash Over Broadcast Rates

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ICARO Media Group
Politics
01/12/2023 20h07

In the latest battle between television networks and service providers, DirecTV customers in Texas are now facing a blackout as WFAA and TEGNA, the owner of WFAA, fail to reach an agreement on broadcast rates. As a result, thousands of viewers in the Dallas-Fort Worth area are left without access to their favorite channels and programs.

This is not the first time that DirecTV has found itself embroiled in a dispute over broadcasting rates. Just months ago, the company faced a similar situation with Irving-based Nexstar Media Group, resulting in a 77-day blackout that affected over 200 stations in more than 100 metro areas, including Dallas.

DirecTV expressed disappointment but not surprise at TEGNA's decision to blackout its channels. Rob Thun, Chief Content Officer of DirecTV, criticized TEGNA for perpetuating what he called the "status quo for American broadcasters," using territorial exclusivity and blackouts to demand ever-increasing rates for programming that is available for free over-the-air.

Both DirecTV and TEGNA must come to an agreement soon in order to avoid further frustration for customers. Thun stressed the unsustainability of continued price increases, stating that it erodes trust, limits choice, and burdens already overtaxed consumers.

TEGNA, however, accuses DirecTV of refusing to come to a fair, market-based agreement and has urged the service provider to continue negotiations until a deal is reached. The blackout means that DirecTV and AT&T U-Verse customers will miss out on NFL and college football conference championship games, as well as popular national network programming and top-rated local news.

DirecTV has reached out to Brad Ramsey, president and general manager at WFAA, requesting permission to temporarily show the championship games for the benefit of customers. Thun highlighted that according to law, WFAA alone has the power to determine whether the station remains in DirecTV's lineup.

The future of broadcast television is a concern for Thun, who believes a change to the current retransmission consent regime is necessary. He suggests an a la carte model where consumers can choose which channels to subscribe to. However, TEGNA has rejected any proposal that includes such a deal, sticking to a model that bundles channels into a single package.

As customers struggle to access their favorite teams and programs, Thun warns that broadcasters may be pricing themselves out of the market. He notes that the pay-TV industry is already declining, and relying on price increases to recapture profits could worsen the situation.

In response to the blackout, DirecTV is working with local sports bars and restaurants, such as Buffalo Wild Wings and Dave & Busters, to offer alternative viewing options for affected customers. Additionally, viewers can watch the games through the ESPN app and online.

The Big 12 Championship match between the Texas Longhorns and the Oklahoma State Cowboys, as well as the AAC Championship game between the SMU Mustangs and the Tulane Green Wave, are significant events for sports enthusiasts. The Longhorns aim to secure their first Big 12 Championship win in five years, while the Mustangs hope to claim their first conference championship since 1984.

As the dispute between DirecTV and TEGNA continues, viewers eagerly await a resolution that will restore access to their beloved channels and programs. However, the clash highlights underlying issues in the broadcast industry that may require significant changes to ensure a sustainable future for television providers and consumers alike.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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