DirecTV users lose access to ESPN, other Disney channels amid contract dispute

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DirecTV, DirecTV Stream and U-Verse customers lost access to Disney-owned networks over the weekend due to a contract dispute between the companies.

The announcement comes weeks after a judge ruled against Disney, which was planning to launch a streaming sports venture in conjunction with Fox and Warner Bros. Discovery later this fall. That agreement would have given non-cable customers the ability to watch live sports on networks such as ESPN and FS1. Those plans are on hold as Disney appeals the judge’s decision.

The networks pulled from DirecTV include ESPN, FX and the Disney Channel. Also, ABC was removed from customers in major metro areas where ABC owns the station.

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DirecTV says Disney requires the cable and satellite company to bundle its channels and pass the cost to consumers, obligating customers to pay for channels they may not watch. Disney says it proposed a variety of “flexible options.”

“The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system,” said Rob Thun, chief content officer at DirecTV. “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.”

Disney says that 90% of DirecTV customers watch Disney’s linear program every month.

In a joint statement from Alan Bergman, co-chairman of Disney Entertainment, and Jimmy Pitaro, chairman of ESPN, they said subscribers lost access to these channels just as the NFL and college football seasons are getting underway.

“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. We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that’s what our viewers expect and deserve. We urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming,” they added.

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The disagreement comes exactly a year after Disney pulled its programming from Spectrum for 11 days.

Credits for customers

DirecTV said customers affected by the disruption will be eligible for a credit. The amount of credit will depend on a customer’s location and package.

DirecTV customers can learn more about how to obtain a credit through DirecTV’s website.