Disney Pulls ABC, ESPN From DirecTV In Dispute

(RTTNews) - Walt Disney Co. has pulled its ABC stations, ESPN and other cable networks from DirecTV's offering after the companies failed to reach a new licensing agreement, impacting millions of customers. The entertainment major urged DirecTV to finalize a deal that would immediately restore the programming.

Meanwhile, DirecTV blamed Disney for the dispute, noting that DIRECTV, DIRECTV STREAM, and U-verse customers lost access when Disney pulled its programming despite attempts by DIRECTV to reach new, multi-billion-dollar licensing agreements for a broad range of programming.

The dispute comes at the time of the much-anticipated return of the NFL, college football, the US Open, as well as Emmy Awards and Presidential Debate on ABC later this month.

In a statement, Disney noted that millions of DirecTV customers are left in the dark while ESPN and other Disney-owned channels are blacked out due to DirecTV's decision to decline a fair, marketplace-based agreement with the firm.

Disney said it has been negotiating with DirecTV for weeks and has proposed a variety of flexible options. This is in addition to innovative ways to work together in making Disney's direct-to-consumer streaming services available to DirecTV's customers.

Dana Walden and Alan Bergman, co-chairmen, Disney Entertainment, and Jimmy Pitaro, chairman, ESPN, said, "DirecTV chose to deny millions of subscribers access to our content just as we head into the final week of the US Open and gear up for college football and the opening of the NFL season. While we're open to offering DirecTV flexibility and terms which we've extended to other distributors, we will not enter into an agreement that undervalues our portfolio of television channels and programs."

Meanwhile, DirecTV said it tried to reach new, multi-billion-dollar licensing agreements for a broad range of programming, including local ABC broadcast stations and affiliates, streaming content like Hulu, and Disney's ESPN suite of channels.

DirecTV added that Disney is taking an anti-consumer approach, demanding that customers from DirecTV and other TV distributors be forced to pay for channels they don't watch. DIRECTV further said that Disney is demanding its customers pay for access to Disney-owned streaming services they either aren't interested in or may already possess.

DirecTV further noted that Disney demanded that it must agree to waive all claims that Disney's behavior is anti-competitive to reach any licensing agreement or to extend access to its programming.

Rob Thun, chief content officer at DIRECTV, said, "The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system. Disney is in the business of creating alternate realities, but this is the real world where we believe you earn your way and must answer for your own actions. They want to continue to chase maximum profits and dominant control at the expense of consumers - making it harder for them to select the shows and sports they want at a reasonable price."