DirecTV and Disney Contract Dispute Continues, Impacting Millions of Subscribers

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ICARO Media Group
Politics
08/09/2024 17h59

As the standoff between DirecTV and Disney enters its second week, a resolution to the contract dispute remains elusive. The disagreement between the two media giants has escalated, with DirecTV filing a complaint with the Federal Trade Commission (FTC) alleging unlawful and anticompetitive practices by Disney. The ongoing dispute has resulted in Disney pulling all of its programming channels, including popular networks like ESPN, ABC, Hulu, Disney Plus, Freeform, and FX, from the DirecTV service.

The conflict between DirecTV and Disney has raised concerns as two major television events, Week 1 of Monday Night Football and a crucial presidential debate, draw closer. DirecTV's decision to file an FTC complaint further escalates the conflict, accusing Disney of insisting on bundling and penetration requirements that a federal court judge in New York previously deemed unlawful. This move by DirecTV follows Disney's sudden decision on September 1st to remove all its programming channels from the satellite TV service, citing a dispute over licensing agreements.

While last year's dispute between Disney and Spectrum TV largely revolved around licensing prices, this year's disagreement seems to run deeper. As a result, the length and potential resolution of this contract dispute remain uncertain, leaving DirecTV subscribers in limbo. However, DirecTV has decided to offer a billing credit to its impacted subscribers due to the Disney outage.

According to DirecTV's statement, millions of their customers, including DirecTV, DirecTV Stream, and U-verse users, lost access to all Disney programming channels. Despite this, DirecTV subscribers who have local ABC affiliate stations not owned by Disney will continue to receive their local ABC channel via satellite service. However, access to ABC programming will not be available for streaming.

The current dispute between Disney and DirecTV bears a resemblance to last year's outage on Spectrum TV. Although the previous dispute was eventually resolved, it took several days. The differing nature of this year's disagreement raises doubts about when and if DirecTV viewers will regain access to ESPN in time for the first Monday Night Football game on September 9th when the 49ers host the Jets.

In light of the Disney channels' removal from DirecTV, subscribers have the option to explore other streaming services to fill the programming gap. Both YouTube TV and Hulu Plus Live TV, two highly rated streaming services, offer all the major Disney channels previously available on DirecTV. These include ABC, ESPN, Disney Plus, Disney Junior, Disney XD, Freeform, FX, and National Geographic. While YouTube TV's base plan costs $73 per month with a 21-day trial, Hulu Plus Live TV charges $77 per month with a three-day trial.

Fubo is another streaming service that includes major Disney channels like ESPN, FX, and ABC. Its base plan costs $80 per month, but there is a seven-day free trial and the first month is currently available for $50. Additionally, SlingTV's base Sling Orange package provides most Disney channels for $15 in the first month and $40 per month thereafter. However, those interested in their local ABC affiliate will need to add Sling Blue or use an over-the-air antenna for TV coverage.

DirecTV recognizes the inconvenience caused to its subscribers and is offering a credit as a gesture of acknowledgment for the disruption. To determine eligibility for the credit, affected DirecTV subscribers can visit the company's TV Promise page, select their TV service, enter their ZIP code, and search for available credits. If eligible, subscribers can visit the Explore bill credits section on the TV Promise page to claim their compensation, which is currently reported to be $20, applied to the following DirecTV bill.

As the DirecTV and Disney contract dispute continues, subscribers are left without access to Disney's popular channels. The ongoing conflict raises questions about the timeline for a resolution and leaves millions of subscribers eagerly awaiting a return to normalcy in their TV lineup.

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

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