The ongoing contract dispute between Walt Disney Co. and DirecTV has caught millions of pay-TV consumers in its crossfire. Subscribers will be without access to popular networks such as ABC, ESPN, and most recently, the much-anticipated debate between Vice President Kamala Harris and former President Donald Trump due to the blackout of Disney’s programming, which started on September 1st.
Disney’s Offer to Break the Blackout for the Debate
Surprisingly enough, on Tuesday Walt Disney Co. proposed DirecTV customers watch the debate that was being hosted by ABC News. This was done by providing a temporary three-hour feed that would allow for access to this important political event. However, DirecTV rejected the proposal made by Disney, saying that it would only confuse customers who would lose ABC immediately afterward if it aired briefly. The fallout of this conflict is that many millions of DirecTV users do not have any ABC broadcasts along with sports and other programs that they miss out on having seen on their platforms already.
DirecTV’s Push for a Broader Solution
Replying to the offer proposed by Disney, DirecTV made a counter proposal of its own. They requested that all channels owned by Disney be reinstated, including ABC, ESPN, and several others, before the end of Monday, September 16th. This solution would have allowed DirecTV customers not just access to the debate but also the important events like the 76th Primetime Emmy Awards, which are happening on September 15th, along with other college and professional football matches.
Unfortunately, however, this counteroffer was turned down by Disney, who went ahead with their move, leaving DirecTV subscribers without an opportunity to watch these debates on ABC, thus adding more intensity to what was already an explosive situation.
Alternative options for DirecTV subscribers
Even though the blackout took place, DirecTV made sure that its customers would not entirely lose out on Tuesday night’s debate. ABC’s coverage was restricted, but the company emphasized that the event would still air on other networks, such as PBS or CBS, simultaneously. Alternative viewing options for people wanting to see Vice President Harris and former President Trump go head-to-head were therefore provided by rival channels.
At this time, DirecTV also told its customers they could watch the debate through different streaming platforms; hence, regardless of the ongoing blackout, there were some means for viewers to keep up with things happening about it.
The Root of the Conflict: Carriage Fees
The spate of conflicts that have been put forth about Disney and DirecTV revolves around the contention over carriage fees meant for directing TV videos toward them. As estimated by the Moffett-Nathanson research team, presently DirecTV shells out about $2 billion per year as fees meant for broadcast TV channels belonging to Disney. Both corporations are, however, engaged in a blame game, arguing over who should take the responsibility for failure in negotiations that led to the blackout.
On September 7th, 2017, DirectTV made a significant stride forward by lodging a complaint against Disney with the Federal Communication Commission (FCC), accusing it of insincere negotiation tactics. The FCC has not yet issued any statement concerning this issue.
Impact on DirecTV Subscribers
There are more than 11 million DirecTV subscribers whose source of Disney channels, such as ABC, ESPN, FX, National Geographic, and Freeform, has been impacted by the blackout. Sports enthusiasts could not have asked for a better time to start life since it is during this particular season that college football starts and other big sporting events are underway.
DirecTV, on their part, in a bid to calm the nerves of the aggrieved, has announced a $30 credit on bills owed by these customers as a form of consolation. However, with regards to some other shows produced by Disney, there are options provided by the firm, but that has not pleased most of their clients, who are left feeling shortchanged.
What’s Next?
There are quite several unresolved disputes concerning several factors involved in the negotiation process between these organizations. This situation leaves them with no other alternative but to find different means of amusement. Such issues as the Emmy prizes and soccer matches have greatly impacted both participating parties, including Disney and DirecTV.
