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DirecTV customers could miss “Monday Night Football” in Disney dispute
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DirecTV customers could miss “Monday Night Football” in Disney dispute

Millions of DirecTV customers likely won’t be able to watch the NFL’s opening game, “Monday Night Football,” on ESPN because the company has yet to reach an agreement with the network’s parent. Disney As of Monday evening.

Disney’s television channels have been off the air for DirecTV customers since September 1 due to a dispute over fees and package deals. These channels include the pay-TV channels ESPN and FX, as well as the television network ABC in some markets.

Disney and DirecTV are unlikely to reach an agreement in time for “Monday Night Football,” according to people familiar with the matter. But negotiations are still ongoing and things could change, they added. A deal could possibly come as soon as tomorrow.

The satellite and streaming company, which Disney, like DirecTV, describes as anti-consumer, is pushing for the possibility of putting together genre-specific packages such as kids, entertainment and news, which Disney rejects.

Because of the dispute, DirecTV customers were unable to watch the U.S. Open and the first full weekend of the college football season.

Live sports continue to draw huge audiences and lead to hefty media rights deals, which in turn have produced some of the most expensive broadcast networks. ESPN is said to be collecting some of the highest fees paid by pay-TV companies to carry the network and its sister channels, CNBC previously reported.

Sports have long been seen as the glue that holds the traditional pay-TV package together as customers migrate to streaming services. According to a recent report from MoffettNathanson, 4 million pay-TV customers have been lost so far this year.

The dispute over DirecTV’s broadcast rights comes at a time when the TV network’s recent advertising campaign highlighted the channel’s streaming options to attract consumers.

“The Walt Disney Co. once again disclaims any responsibility to consumers, distributors and now the American justice system,” said Rob Thun, DirecTV’s chief content officer, 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 Warner Bros. Discovery — to start in time for the NFL season. The lawsuit was filed by Internet TV bundle provider Fubo TV and supported by DirecTV and EchoStars Dish.

The lawsuit argued that there were antitrust concerns related to Venu. The companies also argued that Venu would hurt their businesses because it would offer a sports-only package. Pay-TV providers argued that they were quickly losing customers due to high programming costs that drove up the price of the package, even though streaming was originally a cheaper option.

DirecTV alerted its customers on Friday to competitors’ alternatives for receiving ESPN and also announced a $30 credit.

DirecTV announced Saturday that it had filed a complaint with the Federal Communications Commission, saying Disney did not negotiate in good faith.

According to DirecTV, Disney insisted that DirecTV agree to a “clean slate” clause and an agreement not to sue, both of which are designed to prevent DirecTV from taking legal action against Disney’s anticompetitive claims, which would include filing good faith complaints with the Commission.”

Disney has stated that the company is “willing to offer DirecTV the flexibility and terms we have granted to other distributors,” adding that it “will not enter into any agreement that undervalues ​​our portfolio of television channels and programs.”

“We never want to have a blackout. That’s not good for either side. And of course it’s not good for the customer. We’ve done everything we can,” ESPN Chairman Jimmy Pitaro said on CNBC last week.

Disney later added that more than 90% of DirecTV households watched its channels each month last year and that it has the most successful content on the platform, citing Nielsen. The company also said it has offered DirecTV different packages and also charges rates that are consistent with other distribution partners.

The NFL in particular is often the reason why disputes over promotions are settled. The most recent case occurred just last year.

Last September Charter Communication and Disney engaged in a similar battle that ultimately lasted 10 days. However, Charter and Disney reached a settlement a few hours before “Monday Night Football” that allowed customers to tune in that evening.

Last year, Charter argued that the pay-TV business model was broken, pointing out that broadcasters like Disney had siphoned much of its content for their streaming services. In response, Charter pushed for its customers to have access to Disney’s ad-supported streaming apps Disney+ and ESPN+ at no additional cost.

ESPN’s Pitaro referred to negotiations that took place with Charter a year ago in his remarks last week.

“We know it was very difficult to get this deal done … but I give Charter a lot of credit because they came into the room with very concrete ideas. They had a vision that they wanted to execute,” Pitaro told CNBC.

The dispute between DirecTV and Disney has led to a mudslinging match between the two companies that is reminiscent of most disputes in the television industry.

In this case, ESPN reporter Adam Schefter took to social media platform X to recall Monday’s game between the New York Jets and the San Francisco 49ers on ESPN and pointed out which other platforms DirecTV subscribers could log into 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 have to earn your way and answer for your own actions,” DirecTV’s Thun said in a press release. “They want to continue to pursue maximum profits and dominant control at the expense of consumers — making it harder for them to choose the shows and sports they want at a reasonable price.”

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