DirecTV gives ominous update on ESPN/Disney dispute

Despite the ongoing dispute with Disney, DirecTV’s CFO, Ray Carpenter, has clarified (or at least postured) that the company will not compromise its negotiating position, even as Week 1 of the 2024 NFL season and Monday Night Football approaches.

According to Joe Flint of the Wall Street Journal, Carpenter emphasized the need for a long-term solution to ensure the well-being of DirecTV’s subscribers.

DirecTV subscribers were left in the dark on Sunday night as Disney-owned channels, including ABC and ESPN, went off the air due to a failed contract renewal . The timing of the blackout couldn’t have been worse, coinciding with a night of highly anticipated sports events, including LSU-. USC, Braves- Phillies and US Open tennis coverage.

The contract between Disney and DirecTV expired at 5 p.m. ET on Sunday. Although negotiations continued, DirecTV could not maintain access to Disney-owned channels beyond 7 p.m.

In response, Disney and ESPN released a statement calling DirecTV to finalize a deal and reinstate their programming promptly.

“Disney chose to deny millions of subscribers access to our content just as we head into the final week of the US Open and gear up for college football and the opening of the NFL season,” the statement read. “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 urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”

Meanwhile, DirecTV chief content officer Rob Thun issued his own statement:

“The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system,” said Rob Thun, chief content officer at DIRECTV. “Disney is in the business of creating alternate realities, but this is the real world where we believe you earn your way and must answer for your own actions. They want to continue to chase maximum profits and dominant control at the expense of consumers – making it harder for them to select the shows and sports they want at a reasonable price.”

“Consumer frustration is at an all-time high as Disney shifts its best producers, most innovative shows, top teams, conferences, and entire leagues to their direct-to-consumer services while making customers pay more than once for the same programming on multiple Disney platforms,” Thun continued. “Disney’s only magic is forcing prices to go up while simultaneously making its content disappear.”

And that statement was echoed by Carpenter during Tuesday’s call with investors.

There was a time when a carriage dispute between Disney and ESPN wasn’t a fate that companies would tempt.

But this is a new reality for everyone.

Even amidst customer complaints, DirecTV seems comfortable digging in its heels as next week’s highly anticipated New York Jets-San Francisco 49ers Monday Night Football matchup approaches. The company appears unyielding, suggesting it’s prepared to weather a prolonged blackout if necessary.

Carpenter has reaffirmed the company’s commitment to its subscribers’ long-term well-being, which suggests that DirecTV is willing to sacrifice short-term gains, including the potential loss of subscribers due to the blackout, to secure a more favorable long-term agreement with Disney.

Is this just public posturing, or is this a firm position? Who knows, but if we’ve learned anything, customers are the ones who lose when they are held hostage and often end up paying the ransom to get access to the sports they want to watch.

[ Joe Flint ]

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