Ongoing Dispute Between DirecTV and Disney Leaves Millions Without Programming

After failing to come to an agreement with DirecTV, Disney Entertainment pulled the plug on several channels. On Sunday night, DirecTV’s 11.3 million subscribers were left without access to ABC, ESPN, Disney Channel, FX, and various others.

With a five-year contract that expired on Sept. 1, both companies have been negotiating to keep Disney-owned networks on DirecTV subscription packages. At the center of the dispute, Disney wants DirecTV to ante up more money for increased programming costs. Meanwhile, DirectTV says Disney is asking for more money despite selectively taking away programming from live TV packages and adding it to streaming services.

“We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that’s what our viewers expect and deserve,” Disney executives said in a joint statement, per USA Today. “We urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”

According to Rob Thun, DirecTV’s chief content officer, Disney is out to capture “maximum profits and dominant control at the expense of consumers.” Thun says DirecTV wants to tailor smaller programming packages that better align with viewers’ interests. Yet, Disney is making that more difficult by making subscribers pay for large bundles that include channels no one watches.

Unless a deal is made soon, frustrated sports fans will likely miss out on several matches of the U.S. Open as well as some scheduled college football games over the next week. The blackout of ABC could also affect viewers wanting to watch the presidential debate scheduled to air on Sept. 10.

The timing is in line with most TV distribution contracts, which generally expire around the start of major live events, such as football season. While these types of disputes are generally resolved in a few days, it could go on for weeks, and subscribers will still have to pay even without the full benefits.

While Disney is busy negotiating a new contract for live programming, its streaming services are doing well. Earlier this year, Disney’s direct-to-consumer (DTC) unit, which includes Disney+ and Hulu, finally made a profit after suffering a long period of losses.