Why DirecTV Customers Suddenly Lost ESPN and Disney Channels

ESPN, Disney, ABC stations, and streaming services like Hulu went dark for millions of DirecTV customers on Sunday. The networks were pulled by parent company Walt Disney Co. due to a contract dispute.

The blackout occurred on a busy night for sports events, with the new college football season kicking off its first full weekend and ESPN airing the U.S. Open tennis tournament. Fourth-round matches were underway at the U.S. Open when ESPN’s broadcast went off the air on DirecTV at 7:20 p.m. Eastern Time. This time was critical, as 10 minutes later, the football game between No. 13 Louisiana State University and No. 23 University of Southern California was set to start.

This disruption affected many viewers who took to social media to express their outrage. DirecTV has 11.3 million customers, according to Leichtman Research Group, making it the nation’s third-largest pay TV provider.

This issue is not new; it is the second straight year ESPN has gone off the air during the U.S. Open. The crux of the dispute revolves around the carriage fees DirecTV pays Disney to broadcast its programming. DirecTV accused Disney of taking an “anti-consumer approach” by demanding that new agreements include bundled services. On the other hand, DirecTV aims to allow customers an a-la-carte approach to subscribing to specific networks to reduce costs.

Media companies and pay TV providers like DirecTV have clashed repeatedly over how consumers can access and purchase channels and streaming services. Providers are also frustrated with media companies putting some premium programming on direct-to-consumer platforms before they appear on traditional channels. DirecTV cited the example of the miniseries “Shogun” airing on Hulu before FX.

DirecTV also mentioned that Disney offered an extension to keep the channels on air if DirecTV waived all future legal claims regarding Disney’s behavior being anti-competitive. “The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system,” said Rob Thun, DirecTV’s chief content officer.

Thun added that Disney’s demands would make it more difficult for consumers to “select the shows and sports they want at a reasonable price.” Disney, however, stated that it had extended “flexibility and terms” to DirecTV that it has also offered to other distributors. “We will not enter into an agreement that undervalues our portfolio of television channels and programs,” Disney’s statement read.

—With reporting by the Associated Press.

Source: CBS News