DirecTV Says It Will Fight “as Long as It Needs to” in Carriage Dispute With Disney

DirecTV and Disney are locked in a heated dispute over carriage agreements, leaving channels like ABC and ESPN off the air for DirecTV subscribers. This disagreement started on September 1, right during critical events like the U.S. Open and major college football games, making the timing all the more painful for viewers. DirecTV’s CFO, Ray Carpenter, argues that this isn’t just a typical rate negotiation—it’s an existential fight for the future of TV packages. DirecTV is pushing for “skinny,” genre-based bundles, where customers get more choice over what they pay for, unlike the traditional model of all-inclusive packages.

Carpenter laid out DirecTV’s stance during a call with the media, stating that they want to give customers the power to pick and choose content—whether it’s sports, news, or family programming—without paying for extras they don’t want. He emphasized the importance of offering competitive pricing and better access to direct-to-consumer content. The satellite TV provider remains firm on its position despite the pressure of looming high-profile sporting events like the NFL’s Monday Night Football.

Meanwhile, Disney points back at DirecTV, claiming that the blackout is DirecTV’s choice. Disney insists they’ve been flexible with other distributors, but they won’t compromise on offering their vast portfolio of channels at a lower rate. This back-and-forth echoes Disney’s dispute with Charter Spectrum last year, leading to a temporary blackout but eventually resulting in a deal offering Disney+ and ESPN+ to Charter subscribers without additional costs.

DirecTV’s Carpenter noted the similarities between the two disputes but pointed out that, unlike Charter, DirecTV focuses solely on its video customers. The stakes are even higher because DirecTV doesn’t have the luxury of offering additional services like internet or mobile, making the outcome of this battle pivotal to its survival. Carpenter also stressed that not all customers want bundled streaming platforms like ESPN+, and forcing them into packages that include such services wouldn’t benefit everyone.

Ultimately, DirecTV wants more flexibility for its customers, giving them better control over what they watch and pay for. Carpenter even mentioned that they’d be willing to take a hit on their margins if it meant offering viewers lower price points and more tailored options. At the heart of the conflict is the changing landscape of TV and streaming, with consumers increasingly expecting personalized experiences and not being stuck in one-size-fits-all bundles……….[read more]

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