DirecTV Files FCC Complaint Accusing Disney of Negotiating in Bad Faith

In a sign that the blackout of Disney channels on DirecTV isn’t close to being resolved, DirecTV has filed a complaint with the FCC alleging that Disney has failed to negotiate in good faith and that Disney has violated the FCC’s good faith mandates by predicating any licensing agreement on DirecTV’s waiving any legal claims against Disney.

The complaint also argues that “The negotiations have stalled because Disney insists on bundling and penetration requirements that a federal district court judge in New York recently found in the context of the `Venu’ joint venture to be unlawful, anticompetitive, and `bad for consumers.’ Disney wants to force DirecTV to carry a `fat bundle’ including less desirable Disney programming—while itself offering cheaper, `skinnier’ bundles of programming that consumers want."

“Along with these anti-competitive 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 anticompetitive demands, which would include filing good faith complaints at the Commission,” the complaint also noted. “Not three months ago, however, the Media Bureau made clear that such a demand itself constitutes bad faith.”

Earlier this year, the FCC fined Nexstar for seeking to limit the legal options of Hawaiian Telcom Services Company during retransmission consent negotiations . The FCC issued an order proposing fines totaling $720,000 against Nexstar for violations in how it negotiated a 2023 retransmission consent agreement.

The FCC filing comes as DirecTV subscribers are facing the prospect of missing the first NFL matchup on Monday Night Football on Sept. 9.

In response to the impasse, DirecTV also took the unusual step on Sept. 6 to offer subscribers a $30 credit that they could use towards signing up with a different provider to watch football games .

A DirecTV blog post called "Get Your Football Back," noted that subscribers could “visit fubotv.com/deal to start your 7-day free trial from Fubo, either for their Pro or Elite with Sports Plus plans, and $30 off the first month after that. In addition, DirecTV will provide a $30 credit; or Visit sling.com/DirecTV to get the Sling Orange service, offset by a $30 credit from DirecTV. Both alternatives allow you to access Disney networks, including ESPN, ESPN2, ESPN3, Disney Channel, Freeform, and others…Learn more about these alternatives and how to redeem your $30 credit from DirecTV at TVPromise.com starting Saturday, Sept. 7. Once redeemed, credit will apply to active DirecTV accounts within two months.”