Los Angeles, California – DirecTV and Disney find themselves in a tense negotiation as their current carriage agreement nears its expiration on Sunday. The discussions between the two companies have become increasingly heated, with both sides struggling to find common ground.
President of Disney Platform Distribution, Justin Connolly, expressed frustration with DirecTV’s reluctance to engage with their proposals for custom channel packages. On the other hand, DirecTV’s CEO, Rob Thun, criticized media companies like Disney for their behavior, particularly in light of a recent court ruling blocking the launch of a streaming bundle.
Carriage disputes in the pay-TV industry have become more complex in recent years, with traditional cable networks facing challenges as consumers shift towards streaming services. DirecTV, now owned by AT&T and private equity firm TPG, sees the renewal negotiations with Disney as an opportunity to reshape the industry’s dynamics.
Thun emphasized the need for innovative offerings to adapt to changing consumer preferences, while Connolly highlighted the high viewership of Disney networks among DirecTV subscribers. The potential blackout of programming like the U.S. Open and Monday Night Football underscores the stakes involved in the negotiations.
Both companies remain at odds over fee increases and package flexibility, reflecting a broader industry struggle to find a sustainable business model. Thun believes that the pay-TV ecosystem has reached its limits and that a new approach is necessary to meet the evolving demands of consumers.
As the deadline for renewal approaches, the future of DirecTV’s programming lineup hangs in the balance, highlighting the challenges facing the pay-TV industry in a rapidly changing media landscape. The outcome of these negotiations could have far-reaching implications for both companies and their customers.