Millions of DirecTV customers will likely be unable to watch the NFL's opening game, “Monday Night Football,” on ESPN because the company has not yet reached a deal with the network's parent company Disney from Monday evening.
Disney's television networks went dark for DirecTV customers on September 1 amid a battle 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 close a deal in time for “Monday Night Football,” people with knowledge said. However, negotiations are still ongoing and things could change, they added, with a deal potentially coming as early as tomorrow.
The satellite and streaming company calls Disney anti-consumer, as DirecTV is pushing for an option where it can create genre-specific bundles, such as kids, entertainment and news, which Disney opposes.
The fight left DirecTV customers unable to watch the US Open and the first full weekend of the American football season.
Live sports continue to draw large audiences and, in turn, big media rights deals, which have created some of the most expensive networks on TV. ESPN is said to be pulling in some of the highest fees paid by pay-TV companies to carry the network and its sister channels, DailyExpertNews previously reported.
Meanwhile, sports have long been seen as the glue that holds the traditional pay-TV package together, as customers flee to streaming services. According to a recent report from MoffettNathanson, pay-TV customers have been lost by 4 million so far this year.
DirecTV's battle for supremacy comes after its latest advertising campaign highlighted the channel's streaming options to entice consumers.
“Walt Disney Co. has once again failed to provide accountability 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 US judge temporarily blocked the sports streaming service Venu, a joint venture between Disney, Fox Corp. And Discovery of Warner Bros. — from launching in time for the NFL season. The lawsuit was brought by internet TV bundle provider Fubo TV and supported by DirecTV and EchoStar's Dish.
The lawsuit alleged antitrust concerns about Venu. The companies also alleged that Venu would harm their businesses because it offered a sports-only bundle. Pay-TV distributors have said they are losing customers at a rapid pace because of high programming costs, which caused the price of the bundle to skyrocket when streaming was originally a cheaper option.
DirecTV warned customers Friday about competitor alternatives for watching ESPN and also said it would give customers a $30 credit.
On Saturday, DirecTV reported that it had filed a complaint with the Federal Communications Commission, alleging that Disney had not negotiated in good faith.
DirecTV said that Disney “has insisted that DirecTV agree to a 'clean slate' provision and a non-litigation agreement. Both are intended to prevent DirecTV from taking legal action against Disney's anticompetitive claims, including the ability to file good faith complaints with the Commission.”
Disney has said it is “open to offering DirecTV the flexibility and terms we have extended to other distributors” and added that it “will not enter into an agreement that undervalues our portfolio of television channels and programming.”
“We never want a blackout. It's not good for either party. It's not good for the customer, obviously. We've done everything we can,” ESPN Chairman Jimmy Pitaro said on DailyExpertNews last week.
Disney later added that more than 90% of DirecTV households watched its channels each month last year and it is the top-performing content on the platform, citing Nielsen. The company also said it has offered DirecTV different packages and is also asking for rates that are in line with other distribution partners.
The NFL in particular is often the reason that transportation disputes have been resolved, the most recent example being last year.
Last September, the cable giant Communication Charter and Disney went through a similar battle that ultimately lasted 10 days. However, Charter and Disney reached a deal just hours before “Monday Night Football” that allowed customers to tune in that night.
Last year, Charter argued that the pay-TV business model was broken, noting that programmers like Disney had siphoned off much of their content for their streaming services. In response, Charter insisted that its customers would get access to Disney’s ad-supported streaming apps, Disney+ and ESPN+, at no extra cost.
ESPN's Pitaro referred in his speech last week to the negotiations that took place with Charter a year ago.
“While we know that deal was very difficult to close … I give Charter a lot of credit because they came into the room and they had very specific ideas. They had a vision that they wanted to execute,” Pitaro said on DailyExpertNews.
The dispute between DirecTV and Disney has led to a mudslinging match between the two companies that resembles most brawls.
In this case, ESPN reporter Adam Schefter was covering Monday's ESPN game between the New York Jets and the San Francisco 49ers on social media platform X, noting which other platforms DirecTV subscribers can subscribe to to watch the game.
DirecTV also expressed its displeasure.
“Disney is in the business of creating alternate realities, but this is the real world where we believe you deserve your own path and are accountable for your actions,” DirecTV's Thun said in a press release. “They want to continue to pursue maximum profit and dominant control at the expense of consumers — making it harder for them to select the shows and sports they want at a reasonable price.”