Disney Goes Dark on DirecTV in Contract Fight Over Fees for ESPN, ABC, Disney Channel, Freeform and More
variety.comCynthia Littleton Business Editor ESPN and other Disney-owned channels have gone dark on DirecTV after the sides failed to come to terms on a new carriage agreement, a business impasse that reflects the broader economic pain spreading throughout the pay TV sector.
The blackout, coming on a big weekend for college football and during ESPN’s coverage of the U.S. Open tennis tournament, affects most of DirecTV’s 11 million-plus subscribers in the U.S.
DirecTV stated that Disney made the decision to pull the plug as negotiations were under way. Disney leaders argued they had no choice as DirecTV has balked paying what it described as market rates for its channels. “While we’re open to offering DirecTV flexibility and terms which we’ve extended to other distributors, we will not enter into an agreement that undervalues our portfolio of television channels and programs.
We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that’s what our viewers expect and deserve.
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