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DirecTV and Disney Resolve Dispute, Restore Programming for Subscribers

By  |  September 15, 2024

In a significant development for television viewers, Walt Disney Co. (DIS.N) and DirecTV have announced a resolution to their recent programming dispute. According to Reuters, the companies reached an agreement on Saturday that will restore access to Disney-owned networks such as ABC and ESPN for DirecTV’s more than 11 million subscribers. This deal marks a pivotal moment for both parties as they aim to enhance consumer choice and adapt to the evolving landscape of TV and streaming.

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    Restoration of Programming and Expanded Choices

    Per Reuters, the agreement comes after DirecTV subscribers had been without ABC, ESPN, and other Disney channels since September 1, due to a breakdown in contract renewal negotiations. The resolution not only reinstates these popular channels but also introduces several new features. DirecTV will now offer a variety of genre-specific programming packages, catering to interests such as sports, entertainment, and family content. This move is part of DirecTV’s broader strategy to align its offerings with current consumer preferences in the streaming era.

    Related: DirecTV and Disney Dispute Could Signal Major Shift in TV Industry

    Additionally, DirecTV subscribers will gain access to Disney’s streaming services, including Disney+, Hulu, and ESPN+, within certain packages. The deal also includes the right for DirecTV to distribute the streaming version of ESPN when it becomes available. This expansion is expected to enhance DirecTV’s competitive edge and address the shifting demands of TV viewers, according to Reuters.

    Impact of the Dispute on Subscribers

    The programming blackout had notable consequences for DirecTV customers. During the dispute, subscribers missed out on key events such as college football games broadcasted on ESPN and the U.S. Open tennis tournament. The situation also meant that DirecTV users could not watch the highly anticipated U.S. presidential debate between Vice President Kamala Harris and Republican candidate Donald Trump on ABC. As highlighted by DirecTV’s Chief Marketing Officer, Vince Torres, the blackout was negatively impacting subscriber numbers, as reported by Reuters.

    Agreement Timing and Industry Context

    The timing of the agreement is particularly strategic, coming just before the Emmy Awards broadcast on ABC. The network is expected to have a standout showing at the awards, with its series “Shogun,” “The Bear,” and “Only Murders in the Building” among the top nominees. This move ensures that DirecTV subscribers will not miss out on what could be a historic night for Disney’s television properties.

    Source: Reuters