DirecTV Files FCC Complaint Against Disney as Impasse Hits 2nd Week

The ongoing dispute between DirecTV and Disney has intensified as it enters its second week without resolution.

On Saturday night, DirecTV lodged a complaint with the Federal Communications Commission, claiming that Disney has been negotiating in bad faith.

Since September 1, Disney-owned channels including ESPN and ABC stations in nine markets have been unavailable to DirecTV subscribers. This disruption has deprived customers of access to significant events such as the final week of the U.S. Open tennis tournament and numerous college football games.

According to Leichtman Research Group, DirecTV currently serves 11.3 million customers, making it the third-largest pay TV provider in the United States.

This situation is particularly pressing as ABC and ESPN prepare to broadcast the season opener for “Monday Night Football,” featuring the New York Jets and the San Francisco 49ers. Additionally, ABC is set to air a presidential debate between Kamala Harris and Donald Trump on Tuesday in Philadelphia.

DirecTV subscribers in major markets such as Los Angeles, the San Francisco Bay Area, Fresno, New York, Chicago, Philadelphia, Houston, and Raleigh, North Carolina, are unable to access ABC-owned stations during this critical time.

Beyond ESPN and ABC, other Disney channels like Freeform, FX, and National Geographic are also unavailable to DirecTV customers.

In its detailed 10-page complaint, DirecTV accuses Disney of breaching the FCC’s good faith negotiation standards by imposing conditions that require DirecTV to waive legal claims related to any anti-competitive actions, including demands for packaging and minimum penetration standards.

DirecTV is advocating for the option to offer consumers leaner programming bundles instead of larger ones that include channels that some viewers may not want to watch.

The complaint points out: “In addition to these anti-competitive mandates, Disney has also insisted that DirecTV consent to a ‘clean slate’ provision and a covenant not to sue. These terms are designed to prevent DirecTV from pursuing legal action against Disney’s anti-competitive practices, including filing good faith complaints with the Commission. However, a mere three months ago, the Media Bureau clarified that such demands amount to bad faith.”

During a recent conference call with business analysts, DirecTV CEO Ray Carpenter emphasized the company’s refusal to reach a new carriage arrangement with Disney without fundamental changes in bundling.

“We’re not thinking short-term,” Carpenter stated. “Our goal is to find a solution that ensures long-term sustainability for our video customers. Our commitment to this matter is strong.”

Since the onset of the blackout, Disney has maintained that mutual release of claims is a typical requirement after licensing agreements are negotiated. This practice has been part of past arrangements between Disney and DirecTV.

A spokesperson for Disney articulated: “Our team continues to engage in negotiations with DirecTV to restore access to our content promptly. We strongly encourage DirecTV to stop distracting from the core issue and prioritize their customers by finalizing a deal that would allow their subscribers to enjoy our upcoming lineup of robust sports, news, and entertainment programming, especially with the imminent return of Monday Night Football.”

In a similar scenario last year, Disney experienced a prolonged negotiation with Charter Spectrum, the second-largest cable TV provider in the U.S. This dispute lasted nearly 12 days, concluding just hours before the season’s first Monday night NFL game.