On September 14, Reuters reported that Walt Disney (DIS.N) and DirecTV have reached an agreement in principle. This deal will restore college football and other programming to DirecTV’s over 11 million subscribers.
The agreement provides satellite TV subscribers with more choice and flexibility, according to a joint statement from the companies. DirecTV customers had been unable to access ABC, ESPN, and other Disney-owned networks since September 1, due to a deadlock in renewal negotiations.
DirecTV will now offer various genre-specific programming packages, including options for sports, entertainment, and kids and family content. The satellite TV provider aimed to update its offerings to better meet consumer preferences in the streaming TV age.
Disney’s streaming services—Disney+, Hulu, and ESPN+—will also be included in select DirecTV packages. DirecTV will hold the distribution rights for the streaming version of ESPN’s flagship network when it becomes available.
Disney Secures Better Terms in New Agreement with DirecTV
“DirecTV and Disney have a long history of providing top-notch entertainment. This new agreement continues that tradition by acknowledging the immense value of Disney’s content and adapting to the changing preferences of DirecTV’s customers,” the companies stated.
The dispute caused DirecTV subscribers to lose access to popular programming, such as ESPN’s coverage of college football games and the U.S. Open tennis tournament.
Vince Torres, DirecTV’s chief marketing officer, stated that the programming blackout was leading to subscriber losses. He made these comments on Thursday at the Goldman Sachs Communacopia + Technology Conference in San Francisco.
Disney and DirecTV reached an agreement just before Sunday’s Emmy Awards broadcast on ABC. The media giant is expected to achieve historic success, bolstered by three of the year’s most-nominated series: “Shogun,” “The Bear,” and “Only Murders in the Building.”
For decades, distributors like DirecTV and programmers such as Disney have clashed over rates, contributing to the rising cost of television packages.
A key factor supporting the TV industry has been the long-standing practice of “bundling.” This involves requiring pay TV distributors to carry less-watched networks, like Freeform, in exchange for access to highly sought-after programming, such as ESPN. Contracts also outline how widely these distributors must make the content available to their subscribers.
Sports have traditionally acted as a stronghold for the pay TV industry, maintaining viewer interest even as cable and satellite TV distributors lose subscribers.
As viewers shift to streaming, sports are following suit. Major events, including the recently concluded Olympics, are now available on streaming platforms, along with professional sports leagues like the NFL and NBA.