Walt Disney and DirecTV Reach Agreement to Restore Programming
Walt Disney and DirecTV announced on Saturday that they have agreed in principle to restore college football and other programming to the satellite TV provider’s more than 11 million subscribers, bringing relief to the affected viewers.
Expanded Programming Packages
According to a joint statement from the companies, the deal provides satellite TV subscribers with greater choice and flexibility. On Sept. 1, DirecTV customers lost access to ABC, ESPN, and other Disney-owned networks due to a halt in renewal negotiations.
DirecTV will now offer multiple genre-specific programming packages, including sports, entertainment, and kids and family programming. These packages will feature a mix of live and on-demand content, catering to different viewing preferences. This change comes as DirecTV aligns its offerings with consumer preferences in the streaming TV era. Disney’s streaming services—Disney+, Hulu, and ESPN+—will also be included in select DirecTV packages. DirecTV will hold distribution rights for ESPN’s streaming version when it launches.
Improved Economic Terms
Disney has secured improved economic terms under the new agreement, according to sources familiar with the deal. This includes a more favorable revenue share and advertising rates. Both companies emphasized their longstanding relationship, recognizing the value of Disney’s content and the evolving needs of DirecTV customers.
During the dispute, DirecTV subscribers lost access to key programming, including ESPN’s coverage of college football and the U.S. Open. They were also unable to watch the U.S. presidential debate hosted by ABC between Vice President Kamala Harris and Republican candidate Donald Trump. Vince Torres, DirecTV’s Chief Marketing Officer, acknowledged that the programming blackout was causing the company to lose subscribers.
Agreement Reached Before Emmy Broadcast
The agreement was reached just in time for Sunday’s broadcast of the Emmy Awards on ABC, where Disney is expected to dominate with its nominated series, including “Shogun,” “The Bear,” and “Only Murders in the Building.”
Bundling and Changing Consumer Tastes
Distributors like DirecTV and programmers like Disney have historically disagreed over rates as television package costs rise. The TV industry has long relied on ‘bundling,’ where distributors pay for and carry lesser-viewed networks to gain access to premium channels like ESPN. However, this model has faced criticism for inflating costs and limiting consumer choice, especially as viewers increasingly migrate to streaming platforms.
As consumers shift towards streaming, marquee events like the Olympics and professional sports from the NFL and NBA have also moved to streaming services. This trend has accelerated with the planned launch of Venu Sports—a joint venture between Disney, Warner Bros. Discovery, and Fox. Venu’s launch has been delayed due to an antitrust trial, but it presents further challenges to traditional pay TV.
DirecTV has expressed a desire to offer its subscribers more tailored, genre-based programming packages without the burden of a bloated bundle of channels. “That’s a genre offering that we believe is good for consumers, and we want to provide it,” Torres stated.