ESPN, Disney, ABC stations and streaming services including Hulu went dark for for millions of DirecTV customers on Sunday, with the networks pulled by network parent Walt Disney Co. over a contract dispute.
The services were pulled 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, angering many viewers who vented their displeasure on social media.
The blackout also happened 10 minutes before the start of the football game between No. 13 Louisiana State University and No. 23 University of Southern California.
DirecTV, a provider of satellite TV, internet and streaming services, has 11.3 million customers, according to Leichtman Research Group, making it the nation’s third-largest pay TV provider.
What the fight is about
It is the second straight year ESPN has gone off the air on TV during the U.S. Open. The dispute centers on the so-called carriage fees that DirecTV pays Disney to broadcast its programming.
Specifically, DirecTV said in a statement that Disney is “taking an anti-consumer approach” by demanding that a new deal include bundled services. For its part, DirecTV wants to allow customers to be able to take an a-la-carte approach to subscribing to specific networks, making it easier to lower their costs.
Such disputes have led to numerous blackouts in recent years. Media companies have repeatedly clashed with pay TV providers like DirecTV that distribute their content, including over how consumers can subscribe to and purchase channels and streaming services.
Distributors are also frustrated with production companies putting some of their premium programing on direct-to-consumer platforms before they show up on channels.
DirecTV cited the miniseries “Shogun” appearing on Hulu before FX. DirecTV also said Disney offered an extension to keep the channels on the air in exchange for DirecTV having to waive all future legal claims that its behavior is 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, in a statement.
Thun added that Disney’s demands will make it more difficult for consumers “to select the shows and sports they want at a reasonable price.”
In its own statement, Disney said it had extended “flexibility and terms” to DirecTV that it has offered other distributors. “We will not enter into an agreement that undervalues our portfolio of television channels and programs,” the company said.
—With reporting by the Associated Press.
Aimee Picchi
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
