Why can’t DirectTV customers watch ESPN and Disney? When will the problem be solved?

DirecTV customers are currently experiencing a blackout of ESPN, Disney, and other Disney-owned channels due to an unresolved contract dispute between DirecTV and Disney. This disruption has left over 10 million subscribers without access to popular channels, including ESPN networks, ABC, Disney Channel, FX, Freeform, and National Geographic, since the beginning of September.

Why there is a negotiation breakdown

The core issue behind this blackout is the failure of DirecTV and Disney to reach a new distribution agreement before the expiration of their previous contract. Several contentious points have emerged during negotiations.

Carriage fees are a significant sticking point, with Disney seeking higher fees for its programming, while DirecTV is concerned about rising costs and passing them on to consumers.

Channel bundling is another area of disagreement. DirecTV desires more flexibility to offer smaller, tailored packages rather than large bundles of channels, which Disney prefers. For example, Disney requires that ESPN must be delivered to about 82% of DirecTV’s subscribers, but DirectTV says only 40% of its customers watch sports regularly.

When will the problem be solved?

There is no clear timeline for when this dispute will be resolved. The blackout began on 1 September, and similar disputes in the past, such as the one between Disney and Charter Communications last year, lasted 12 days.