The standoff between DirecTV and Disney over a new carriage deal has intensified as it enters its second week.
DirecTV filed a complaint with the Federal Communications Commission on Saturday evening, accusing Disney of negotiating in bad faith.
Disney channels, including ESPN and ABC stations in nine markets, have disappeared from DirecTV since the evening of September 1. That meant DirecTV customers were denied access to most college football games and the final week of the US Open tennis tournament. including the women’s and men’s finals.
According to Leichtman Research Group, DirecTV has 11.3 million subscribers, making it the third largest pay TV provider in the country.
ABC and ESPN will host the “Monday Night Football” opener between the New York Jets and San Francisco 49ers. ABC will also produce and executive produce a presidential debate between Kamala Harris and Donald Trump on Tuesday in Philadelphia.
ABC stations in Los Angeles; San Francisco Bay; Fresno, California; New York; Chicago; Philadelphia; Houston; and Raleigh, North Carolina, are outside of DirecTV.
In addition to all ESPN Network channels and ABC-owned stations, Disney’s Freeform, FX and National Geographic channels are dark.
DirecTV says in its 10-page complaint that Disney is violating the FCC’s good faith mandates by asking to waive legal claims over anticompetitive actions, including its continued packaging and minimum penetration requirements.
DirecTV has asked Disney for the opportunity to offer consumers cheaper and thinner bundles of programming, instead of larger bundles of shows that some viewers may not be interested in.
The complaint states: “In addition to these anticompetitive demands, Disney has also insisted that DirecTV agree to a clean slate provision and a non-sue covenant, both of which are intended to prevent DirecTV from pursuing legal action regarding Disney’s anticompetitive demands. including filing complaints in good faith with the Commission. However, less than three months ago, the Media Bureau made it clear that such a demand in itself constitutes bad faith.”
DirecTV CEO Ray Carpenter said Tuesday during a conference call with business and media analysts that they would not agree to a new carriage deal with Disney without bundling the changes.
“We’re not playing a short-term game,” Carpenter said. “We need something that’s going to work for the long-term sustainability of our video customers. The determination is there.”
Disney has maintained since the start of the blackout that mutual release of claims is standard practice after the parties negotiate and agree on licensing agreements. It has also had one with DirecTV during previous renewals.
A Disney spokesperson said: “We continue to negotiate with DirecTV to restore access to our content as quickly as possible. We urge DirecTV to stop creating redirects and instead prioritize their customers by finalizing a deal that will allow their subscribers to watch our strong upcoming lineup of sports, news and entertainment programming , starting with the return of Monday Night Football.”
Last year, Disney and Charter Spectrum — the nation’s second-largest cable TV provider — were locked in a nearly 12-day standoff until reaching an agreement hours before Monday night’s first NFL game of the season.
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