Disney and DirecTV have ended their blackout. Here’s what each side gets, from ESPN streaming to flexible packages
The Walt Disney Company and DirecTV have ended their dispute over how to offer the Mouse House’s content—and at what price—to DirecTV satellite, streaming, and U-verse customers, according to a joint press release from the two companies. Here’s what you need to know about the new development: What was the dispute about? The dispute began at the start of September when Disney’s and DirecTV’s old contract expired. At the core of the dispute was that Disney felt DirecTV wasn’t offering it the money its content was worth for its channels including ESPN, Disney Channel, Disney Junior Disney XD, FX, National Geographic, and more. Direct TV, meanwhile, wanted more flexibility in how to bundle the content. Since the two were at a stalemate, all of Disney’s channels were pulled from DirecTV in what is known as a blackout. This meant DirecTV customers could no longer watch Disney-owned channels. This news was especially bad for sports fans as the blackout of ESPN came just at the time when college football and the NFL’s new season were getting underway. The resolution On September 14, Disney and DirecTV announced that they had agreed to a new deal to end their dispute and thus end the blackout, which means Disney’s channels are now back on DirecTV’s services. “Through this first-of-its-kind collaboration, DIRECTV and Disney are giving customers the ability to tailor their video experience through more flexible options,” the statement read in part. But what does that mean? And what do Disney and DirecTV get out of this? For Disney, the answer is money. Neither company revealed what the financial terms of the new deal were, but it is unlikely that Disney would have signed the deal had it felt the new financial terms weren’t valuing its content assets appropriately. As for DirecTV and its customers, the TV provider negotiated the following: The right to continue carrying Disney’s ABC-owned TV stations, the company’s ESPN and FX networks, Disney-branded channels, Freeform, and National Geographic channels. The ability to offer customers new genre-specific packages, including sports, entertainment, kids & family, which may include Disney’s TV channels. Some DirecTV packages will also include access to Disney’s streaming services, which are Disney Plus, Hulu, and ESPN Plus. The right for DirecTV to distribute ESPN’s flagship streaming service when it launches in 2025. So, for now, at least, DirecTV customers can rest easy knowing they have their Disney-owned channels back. However, this new contract will one day come to an end, and when it does, if Disney and DirecTV can’t agree on new terms, another blackout could happen. Thankfully, that worst-case scenario is at least years away. While Disney and DirecTV did not specify how long the new contract lasts, their press release described it as a “multi-year” deal.
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The Walt Disney Company and DirecTV have ended their dispute over how to offer the Mouse House’s content—and at what price—to DirecTV satellite, streaming, and U-verse customers, according to a joint press release from the two companies. Here’s what you need to know about the new development:
What was the dispute about?
The dispute began at the start of September when Disney’s and DirecTV’s old contract expired. At the core of the dispute was that Disney felt DirecTV wasn’t offering it the money its content was worth for its channels including ESPN, Disney Channel, Disney Junior Disney XD, FX, National Geographic, and more. Direct TV, meanwhile, wanted more flexibility in how to bundle the content.
Since the two were at a stalemate, all of Disney’s channels were pulled from DirecTV in what is known as a blackout. This meant DirecTV customers could no longer watch Disney-owned channels. This news was especially bad for sports fans as the blackout of ESPN came just at the time when college football and the NFL’s new season were getting underway.
The resolution
On September 14, Disney and DirecTV announced that they had agreed to a new deal to end their dispute and thus end the blackout, which means Disney’s channels are now back on DirecTV’s services.
“Through this first-of-its-kind collaboration, DIRECTV and Disney are giving customers the ability to tailor their video experience through more flexible options,” the statement read in part.
But what does that mean? And what do Disney and DirecTV get out of this?
For Disney, the answer is money. Neither company revealed what the financial terms of the new deal were, but it is unlikely that Disney would have signed the deal had it felt the new financial terms weren’t valuing its content assets appropriately.
As for DirecTV and its customers, the TV provider negotiated the following:
- The right to continue carrying Disney’s ABC-owned TV stations, the company’s ESPN and FX networks, Disney-branded channels, Freeform, and National Geographic channels.
- The ability to offer customers new genre-specific packages, including sports, entertainment, kids & family, which may include Disney’s TV channels.
- Some DirecTV packages will also include access to Disney’s streaming services, which are Disney Plus, Hulu, and ESPN Plus.
- The right for DirecTV to distribute ESPN’s flagship streaming service when it launches in 2025.
So, for now, at least, DirecTV customers can rest easy knowing they have their Disney-owned channels back. However, this new contract will one day come to an end, and when it does, if Disney and DirecTV can’t agree on new terms, another blackout could happen.
Thankfully, that worst-case scenario is at least years away. While Disney and DirecTV did not specify how long the new contract lasts, their press release described it as a “multi-year” deal.
