Disney and DirecTV Deal Restores ABC and ESPN Channels Amid Distribution Dispute

Disney and DirecTV Come to Terms

A short but intense distribution dispute between Disney and DirecTV has come to a close as the two sides have agreed on a deal. This agreement restores Disney-owned channels, including ABC, ESPN, and FX, back to the satellite TV provider. DirecTV halted airing Disney channels on September 1, cutting off access for over 11 million subscribers to critical sports events such as NFL games on ESPN’s “Monday Night Football” and US Open matches on ABC.

New Opportunities for Viewers

The companies publicly expressed gratitude toward viewers for their patience, emphasizing that the timing of the deal is advantageous with college football and the Emmy Awards weekend approaching. The deal includes new viewing options for customers, introducing packages that encompass Disney+, Hulu, and ESPN+ streaming services. Additionally, DirecTV will now offer the upcoming standalone streaming service from ESPN without extra cost to its subscribers.

DirecTV's efforts to retain subscribers included deals with Sling, a competitor owned by Dish Network, and Fubo, aimed at providing credits and discounts to customers to help them watch the latest sports events.

Impact of Distribution Disputes

This particular dispute, while resolved, demonstrated the potential ugliness often associated with such negotiations. DirecTV had even escalated the matter to the Federal Communications Commission, alleging Disney's lack of good faith in negotiations. The absence of ESPN coverage for the season's opening “Monday Night Football” featuring high-profile teams was a notable consequence.