Disney, DirecTV end carriage fight, restoring channels like ESPN ahead of college football
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Walt Disney (NYSE:DIS) and DirecTV on Saturday said they had reached a new agreement in principle that would restore channels such as ESPN and ABC to millions of subscribers, ending a roughly two-week blackout.
DirecTV subscribers on September 1 found themselves unable to access Disney (DIS) channels after the two parties failed to renew their distribution agreement before an expiry date.
“We’d like to thank all affected viewers for their patience and are pleased to restore Disney’s entire portfolio of networks in time for college football and the Emmy Awards this weekend,” the companies said in a joint statement.
Terms of the new proposed deal include DirecTV paying “market-based” rates to carry Disney’s (DIS) channels.
The agreement ends a messy spat between the two companies that saw DirecTV last Sunday filing a complaint with the U.S. Federal Communications Commission alleging Disney (DIS) failed to negotiate in good faith and engaged in anticompetitive behavior.
Other “core points” agreed to include:
“Disney’s direct-to-consumer streaming services (Disney+, Hulu, ESPN+) to be included in select DIRECTV packages under a wholesale agreement, and also to be made available on an a la carte basis.”
“The rights to distribute Disney’s upcoming ESPN flagship direct-to-consumer service upon its launch at no additional cost to DIRECTV customers.”
DirecTV is co-owned by AT&T (NYSE:T) and private equity firm TPG (NASDAQ:TPG).
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