Disney-DirecTV Dispute: ESPN and Other Channels Go Offline on Pay TV Service

DirecTV and Disney have reached a stalemate, resulting in ESPN, Disney Channel, FX, and various other networks going dark on Sunday night. The companies have been in discussions for a new contract to continue Disney's content on DirecTV's satellite and streaming services, including U-Verse TV, following the terms of their five-year pact on September 1.

Unable to reach a deal, Disney's content has gone dark on DirecTV, leaving over 11 million pay-TV subscribers without access to ESPN and ESPN2 just as the college and pro football seasons begin. Other affected channels include ESPN Deportes, ESPNU, ESPN News, ACC Network, SEC Network, Disney Channel, Disney Junior, Disney XD, FX, FX Movie Channel, FXX, Freeform, and National Geographic. For sports fans, ESPN is currently broadcasting the U.S. Open tennis championships, which will come to an end over the next week, and has significant football broadcasts scheduled, including Boston College vs. Florida State at 7:30 p.m. on Monday, Sept. 2. Next week’s lineup features Texas vs. Michigan on Sept. 7 and ESPN’s Monday Night Football debuting on Sept. 9 with the New York Jets vs. San Francisco 49ers.

Sunday night’s USC vs. LSU game, which kicked off at 7:30 p.m. ET on September 1, was blacked out on Disney-owned local stations including ABC7 in Chicago, Los Angeles, New York, San Francisco, and ABC6 in Philadelphia, as well as ABC11 in Raleigh-Durham, ABC13 in Houston, and ABC30 in Fresno. DirecTV subscribers who obtain Disney-owned ABC channels also face the upcoming blackout of the September 10 presidential debate.

DirecTV-Disney Dispute: ESPN and Disney Channel Go Dark

In a statement to USA TODAY, Disney Entertainment co-chairs Dana Walden and Alan Bergman, along with ESPN chairman Jimmy Pitaro, highlighted the poor timing for DirecTV subscribers.

"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," the statement said. "We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that's what our viewers expect and deserve. We urge DirecTV to do what's in the best interest of their customers and finalize a deal that would immediately restore our programming."

DirecTV's chief content officer, Rob Thun, stated that Disney's demand for the TV provider to forgo all future legal claims of anti-competitive behavior suggests that Disney is concerned about antitrust issues. Recently, a federal judge blocked the launch of Venu, a new streaming platform from Disney, Fox, and Warner Bros. Discovery, citing potential anti-competitive effects. The judge noted that this "first-ever" offering of unbundled sports programming from rival companies could cause "irreparable harm" to the sports streaming service Fubo, which filed the lawsuit. Thun explained that DirecTV seeks to collaborate with programmers like Disney to offer "smaller, more tailored packages" that align with viewers' preferences, rather than forcing them to pay for "fat bundles" with channels they don't watch.

The DirecTV-Disney dispute heated up over the week

In recent days, as negotiations between DirecTV and Disney progressed, both parties have taken steps to sway public opinion. DirecTV subscribers watching ESPN received alerts stating, "DirecTV & DirecTV Stream Customers: You Could Lose The ESPN Networks.

On the website, Disney says: "We continuously work with our Cable, Satellite, Telco and Streaming distribution partners to continue to offer fans our networks on their TV channel lineups. Disney Entertainment has a highly successful track record of negotiating with providers of all types and sizes across the country and is committed to reaching fair, market-based rates and terms."

DirecTV created the site UnbundledDisney.com where it says the TV provider is "working with programmers like Disney to provide more choice, control and value to complement streaming services."

What happens next remains uncertain. Around this time last year, a carriage dispute between Disney and Charter Communications, the parent company of Spectrum Cable, resulted in a nearly two-week blackout. As of Sunday night, Thun told USA TODAY, "There is currently no one in the room negotiating."