DirecTV and Disney Reach Deal to Bring ESPN Back for College Football

DirecTV and Disney have reached a deal to bring ESPN and other channels back to DirecTV customers after a two-week blackout. This agreement comes just in time for the start of college football season, which airs on ABC, ESPN, SEC Network, and ACC Network.

• The deal also includes the Emmy Awards, which air on ABC.
• The two sides were unable to agree on fees and bundle structures, leaving DirecTV's 11 million customers without access to ESPN, the U.S. Open, and Monday Night Football.

DirecTV's Demand for Flexible Bundles

DirecTV executives have been pushing for the ability to offer more flexible, genre-specific bundles to customers, and this deal allows them to do just that.

• The deal allows DirecTV to offer sports, entertainment, and kids and family bundles, including Disney's traditional TV networks and its streaming services, Disney+, Hulu, and ESPN+.
• DirecTV will also be able to offer Disney's streaming services à la carte.

ESPN's Streaming Future

The deal also gives DirecTV the right to distribute Disney's upcoming ESPN flagship direct-to-consumer streaming service, expected to launch in fall 2025, at no additional cost to its subscribers. This follows a similar agreement between Charter Communications and Disney in 2023.

• This agreement reflects the growing importance of streaming services in the media landscape.
• It also underscores the value of live sports, particularly ESPN, as a linchpin for traditional pay-TV providers.

The Blackout's Impact

The two-week blackout had a significant impact on both DirecTV customers and small businesses that rely on DirecTV for their TV content, including ESPN.

• Customers were unable to watch college football, the U.S. Open, and the Monday Night Football season opener.
• Small businesses, particularly bars and restaurants, were unable to offer the full slate of sports they usually do, including the NFL Sunday Ticket package.
• The blackout also occurred during the presidential debate, leaving customers in certain markets without access to Disney's ABC network.

Antitrust Concerns and the Future of Pay TV

The DirecTV-Disney dispute highlights the ongoing shift from traditional pay-TV bundles to streaming services. The future of pay TV is uncertain as customers continue to embrace streaming options and other forms of entertainment.

• The dispute also raises antitrust concerns, particularly in the wake of the temporary blockage of Venu, a joint streaming venture between Warner Bros. Discovery, Fox Corp., and Disney.
• DirecTV filed a complaint with the FCC alleging that Disney did not negotiate in good faith.
• The FCC has rules requiring broadcast owners to negotiate in good faith.

DirecTV's Streaming Push

DirecTV is trying to stay relevant in the changing media landscape by promoting its streaming bundle, offering an alternative to its traditional satellite TV service. This emphasizes the need for flexibility and adaptability for pay-TV providers to compete with streaming services.

• The agreement with Disney allows DirecTV to offer a more competitive streaming bundle, including ESPN's flagship direct-to-consumer service.
• This could help DirecTV retain customers and attract new ones in the increasingly competitive streaming market.