Streaming services including ESPN, Disney, ABC stations and Hulu went dark Sunday for millions of DirecTV subscribers, with the networks pulled by network parent Walt Disney Co. over a contract dispute.
Services were pulled on a busy night for sporting events, with the new college football season kicking off its first full weekend and ESPN broadcasting the US Open tennis tournament. Fourth-round matches at the US Open were underway when ESPN’s broadcast on DirecTV stopped at 7:20 pm Eastern Time, angering many viewers who took to social media to express their displeasure.
The blackout occurred 10 minutes before kickoff 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 subscribers, according to Leichman Research Group, making it the nation’s third-largest pay TV provider.
What is the fight about?
This is the second year in a row that ESPN TV has stopped broadcasting during the US Open. The dispute centers on so-called carriage fees that DirecTV pays Disney to broadcast its programming.
Specifically, DirecTV a statement That Disney is “taking an anti-consumer approach” by claiming to include bundled services in a new deal. For its part, DirecTV wants customers to be able to take an a-la-carte approach to subscribing to certain networks, making it easier for them to cut costs.
Such disputes have led to numerous blackouts in recent years. Media companies have repeatedly clashed with pay TV providers like DirecTV who 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 programming on direct-to-consumer platforms before showing it on channels.
DirecTV cited the miniseries “Shogun,” which aired on Hulu before FX. DirecTV also said Disney offered an extension to keep the channels on the air in exchange for dropping all legal claims against DirecTV’s conduct.
“The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners and now the American justice system,” DirecTV Chief Content Officer Rob Thune said in a statement.
Thune added that Disney’s demands will make it more difficult for consumers to “select the shows and games they want at a reasonable price.”
in himself statementDisney said it has increased the “flexibility and terms” in the directive that it has offered other distributors. “We will not enter into an agreement that devalues our portfolio of television channels and programs,” the company said.
— with reporting by The Associated Press.