Disney vs. DirecTV: No more sports until the contract dispute is resolved.
The US Open broadcast suddenly cut out for DirecTV customers on Sunday evening due to contract dispute with Disney.
Disney blocked access to ESPN, ABC, and other Disney-owned channels for the roughly 11 million DirecTV subscribers after ongoing distribution negotiations went sour. The blackout occurred right before the college football season opener with LSU versus USC. That the hardball tactic occurred during primetime at the US Open and right before the start of the NFL season is no coincidence since it motivates both parties to reach a deal. However, that also means when negotiations fall through, millions of customers suffer the consequences.
According to a statement from DirecTV, "Disney is forcing consumers to pay for channels they don't watch," while DirecTV wants to offer customers more flexibility in terms of the channels they wish to pay for. "Disney's only magic is forcing prices to go up while simultaneously making its content disappear," said said Rob Thun, chief content officer in the press release.
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According to a statement from Disney, they're willing to offer flexibility of channels, but "will not enter into an agreement that undervalues our portfolio of television channels and programs." Exactly, a year ago Disney pulled the same move with cable company Spectrum, which resulted in a 10-day blackout. So one thing is certain: during one of the biggest sports broadcasting moments of the year, customers are losing out.
Customers took to X to express their anger and willingness to cancel their account if it's not resolved.
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While DirecTV is the one shouldering the blame, and by extension losing customers, users called out Disney as the "root cause" and the "villains" since it's the party that owns the channels and is holding out for more money.
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Meanwhile, amidst the ongoing battle between DirecTV and Disney, streaming platforms that don't require cable subscriptions like YouTube TV and Fubo are sitting back with popcorn.
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Cecily is a tech reporter at Mashable who covers AI, Apple, and emerging tech trends. Before getting her master's degree at Columbia Journalism School, she spent several years working with startups and social impact businesses for Unreasonable Group and B Lab. Before that, she co-founded a startup consulting business for emerging entrepreneurial hubs in South America, Europe, and Asia. You can find her on X at @cecily_mauran.
