Media

Disney’s DirecTV carriage dispute could be disastrous for football fans

Disney and DirecTV are locked in a carriage dispute that could see ESPN go dark just as the college football season begins and “Monday Night Football” kicks off with the New York Jets battling the San Francisco 49ers.

The Mouse House, which owns ESPN, is locked in renewal discussions with DirecTV ahead of its current deal’s expiration on Sunday.

If the two sides do not reach an agreement by then, DirecTV’s more than 11 million subscribers will be forced to scramble for an alternative to watch Disney content.

That includes the return of Jets quarterback Aaron Rodgers on Monday after he missed most of last season to an injury and a slate of college football games highlighted by šŸŽ¶defenź¦¦ding champion Michigan taking on Texas on Sept. 7.

ESPN’s “Monday Night Football” opener of the Jets vs. the 49ers could be blacked out if Disney does not strike a deal with DirecTV. Robert Sabo for NY Post

A carriage dispute between Disney and Charter Communications, Spectrum’s parent, led to a nearly two-week blackout around this time last year, and was resolved hours before that pitted the Jets vs. the Buffalo Bills.

But things may go dā„±ifferently this time arounā™Œd due in part to a recent ruling that has rocked the sports media world.

Earlier this month, a federal judge in New York’s Southern District issued a temporary injunction preventing the launch of Venu, a new sports streaming service from Disney, Fox and Warner Bros.šŸ· Discovery.

ESPN’s college football kick off game pitting USC vs. LSU might be blacked out for millions of DirecTV subscribers Sunday. Getty Images

The judge said the service could cause “irreparable harm” to sports streaming service Fubo and to consumers, adding that Venu would be giving rights to sports content that was not bundled with other programming — “for the first time ever.”

Most contracts have required pay TV distributors to charge subscribers for all of a company’s channels whether they want them or not. For instance, DirecTV subscribers may watch ESPN and ESPN 2 but not the Disney Junior channel and FX.

DirecTV chief content officer Rob Thun said in last week that his firm’s current negotiations with Disney have been colored by the judge’s ruling, and that he wants to offer “smaller, more tailored packages at prices that reflect” value to consumers.

DirecTV said it wants to offer a slimmed down content package to its customers after a judge ruled to temporarily block Venu, a streaming service that would offer more flexible sports programming for the first time ever. Lost_in_the_Midwest – stock.adobe.com

Aside from ESPN, other Disney-owned channels on DirecTV incšŸ¦©lude ESPN2, ESPN Deportes, Disney Channel, Disney Junior, Disney XD, FX, FX Movie Chanš’nel, Freeform, National Geographic and Nat Geo Wild.

DirecTV’s requirement to include all of a content provider’s channels into its service forces “pay TV customers to subscribe to many channels they may not watch, which have yielded ā€˜fat bundlesā€™,” Thun wrote.

Disney said that DirecTV hasn’t engaged on its proposals for customized packages of channels during the negotiation process. Getty Images

“At the same time, programmers have reserved flexible genre-based offerings solely for themselves, eroding the price-value proposition for pay TV customers by shifting the best programming to (their own direct-to-customer streaming) services while raising programming fees on pay TV,” he added.

ā€œTšŸ¦‹hey have not engaged in earnest on proposals weā€™ve made to themā€ for customized packages of channels, President of Disney Platform Distribution Justin Connolly on Tuesday. ā€œTheyā€™re trying to lay the blame for their lack of investment in their platform at the feet of programmers.ā€

TV providers hšŸ¼ave been crushed by the exodus from cable to streaming services.

In 2023, DirecTV shed an estimated 1.8 million subscribers, leaving it with roughly 11.3 million at the year’s end, down from 16 million subscribers at the end of 2019, according to the Leichtman Research Group.