DirecTV Files FCC Complaint Against Disney as Stalemate Reaches Second Week

The deadlock between DirecTV and Disney over a new posture pact has escalated as it extends into its second week.

On Saturday night, DirecTV registered a accusation with the Federal Communications Commission, asserting that Disney was discussing in bad faith.

Since the evening of September 1, Disney channels, including ESPN and ABC-owned stations in nine markets, have been unavailable on DirecTV. As a result, DirecTV customers have been unable to watch most college football games and the final week of the U.S. Open tennis tournament, counting both the women's and men's finals.

According to Leichtman Research Group, DirecTV, with 11.3 million subscribers, is the third-largest pay TV provider in the nation.

ABC and ESPN will broadcast the "Monday Night Football" opener featuring the New York Jets and San Francisco 49ers. Further, ABC will produce and air a presidential debate between Kamala Harris and Donald Trump on Tuesday in Philadelphia.

ABC-owned stations in Los Angeles; the San Francisco Bay Area; Fresno, California; New York; Chicago; Philadelphia; Houston; and Raleigh, North Carolina, are currently unavailable on DirecTV.

In addition to all ESPN network channels and ABC-owned stations, Disney-branded channels such as Freeform, FX, and National Geographic are also won't be available .

In its 10-page complaint, DirecTV accuses Disney of breaching the FCC's good faith requirements by demanding that DirecTV forgo any legal claims related to potential anticompetitive practices, including Disney's current packaging and minimum penetration demands.

DirecTV has requested that Disney allow it to offer consumers more affordable and streamlined programming bundles, rather than larger bundles that include content some viewers may not want to watch.

The complaint states: “Along with these anticompetitive demands, Disney has also insisted that DirecTV agree to a ‘clean slate’ provision and a covenant not to sue, both of which are intended to prevent DirecTV from taking legal action regarding Disney’s anti competitive demands, which would include filing good faith complaints at the Commission. Not three months ago, however, the Media Bureau made clear that such a demand itself constitutes bad faith."

During a conference call with business and media analysts on Tuesday, DirecTV CEO Ray Carpenter stated that the company would not agree to a new carriage deal with Disney unless there were changes to the bundling structure.

"We’re not playing a short-term game," Carpenter said. “We need something that is going to work for the long-term sustainability of our video customers. The resolve is there."

Since the blackout began, Disney has asserted that mutual release of claims is a standard practice following the negotiation and agreement of licensing deals. Disney has also had similar agreements with DirecTV in past renewals.

Last year, Disney and Charter Spectrum, the nation's second-largest cable TV provider, faced a nearly 12-day deadlock before reaching an agreement just hours before the season’s first Monday Night NFL game.