DirecTV Disney dispute update: Carriage fee negotiations between Disney and DirecTV likely to continue

Modified Sep 07, 2024 15:37 GMT

DirecTV and Disney come with new alternatives amidst its dispute (Image via DirecTv) — DirecTV and Disney come with new alternatives amidst its dispute (Image via DirecTV)

The DirecTV Disney dispute has taken new waves, but the two entertainment giants are nowhere closer to coming to a mutual agreement. On Sunday, August 1, 2024, Disney backed out of channels including ESPN, Hulu, ABC, and some of its most viewed Disney channels from the satellite provider, because it denied coming to terms with its new agreement.

The main reason behind the dispute centers around the carriage fees that Disney charges from DirecTV for broadcasting its channels. DirecTV stated that Disney has been clumping up its channels into large bundles, leaving customers no option but to pay more, even though they only need selected channels, and the cable provider disagrees with this.

This comes as bad news for all the sports fans amid the U.S. Open Tennis Tournament and the opening of the NFL season. The viewers are unable to access the sports channels on their television provider despite having subscriptions.

As a result, both companies have been providing new offers and alternatives to their viewers amid the crisis. Additionally, the latest DirecTV Disney updates may have good news for new subscribers.

DirecTV and Disney find new alternatives to provide channel access to fans

With the DirecTV Disney agreement not coming to a mutual ground, both providers have come out with new alternatives to cater to their audiences during this time. This is the most profitable for new subscribers, as they are provided with more and much cheaper options.

In a DirecTV article, published on September 6, 2024, the cable provider has announced a new offer for fans who want their football matches back. It has collaborated with two competing companies, Dish's Sling TV and Fubo, providing a $30 credit to viewers switching to these providers.

New customers who choose to subscribe to Fubo will get a free trial for seven days, and $30 off for the first month after the trial. Meanwhile, customers who sign up for Sling Orange will receive a $10 discount and a $30 credit when their next DirecTV bill arrives.

Additionally, Disney came out with its own set of offers for customers. Following the latest DirecTV Disney dispute update, Disney has been sending messages to its customers, offering them a list of alternatives, including Fubo and YouTube TV, and especially indicating Hulu—now owned by Disney.

On Friday, September 6, 2024, Hulu announced that till September 11, 2024, they will be providing $30 credit with a Live TV Plan.

What is the prime reason behind the DirecTV Disney dispute?

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The DirecTV Disney dispute updates have come out near Monday Night Football on ESPN, providing sports lovers a way to not miss the game. However, the disagreement between the entertainment giants is not something new. This is the second year the viewers have seen ESPN blacking off the screen during the U.S. Open.

The main cause is the carriage fee that DirecTV pays Disney. A DirecTV article published on September 1, 2024, stated the primary reason behind the dispute with Disney.

They emphasized that Disney, with its new agreement, makes an "anti-customer approach" by creating a new deal bundled service, which allows them to generate the most profits. Customers are forced to buy big bundles while they only need specific Disney channels, making it less user-centric. DirecTV wants its subscribers to choose from smaller network bundles, making it more cost-efficient.

While both companies are trying to come to a common ground and bring the channels back on the screen, no specific date has been given as to when the blackout will end.

Edited by Janhavi Chauhan