Fans of Aaron Rodgers, the New York Jets quarterback who went down in the first game of the 2023 season were likely excited to tune in to see his 2024 comeback on Monday Night Football. While those fans watching were probably disappointed that the Jets weren’t able to pull off a victory, they still may have counted themselves lucky to be able to watch the game at all because not all Jets fans could. Thanks to an ongoing carriage dispute between DirecTV and Disney, some 11 million DirecTV subscribers were unable to watch ESPN’s 2024 Monday night opener, or for that matter, various college season openers. Disney, which owns ESPN along with many other popular TV channels, has been negotiating with DirecTV over a new distribution contract, negotiations that have left DirecTV subscribers in the dark after Disney pulled its programming from DirecTV. What’s at stake? DirecTV, pressured by costs, is looking for more flexibility in the channel choices its offers subscribers, while Disney wants to continue to sell a broad and expensive programming package, even as it offers slimmer and less costly options to subscribers on its own viewing platforms.
Now, more than 10 days into the blackout, some frustrated DirecTV subscribers have already jumped ship, and more may soon follow. Not a football fan? The dispute could still have implications for you. For example, because Disney owns ABC in several large markets, DirecTV subscribers interested in the debate between Kamala Harris and Donald Trump had to go elsewhere to watch. The standoff between the two companies has gotten so intense that DirecTV, claiming anticompetitive behavior on the part of Disney, filed a complaint with the Federal Communications Commission (FCC). Disney claims that it just wants fair pricing for its popular programming. In the meantime, DirecTV, despite working out deals with rivals to allow subscribers to temporarily access channels that have been blacked out, has been forced to make partial refunds to subscribers. Still, these actions may allow it to hold its ground against powerful Disney. Meanwhile, Disney has suggested that its Hulu platform could offer alternative programming options for frustrated subscribers.
Discussion Questions:
1. Central to the dispute between Disney and DirecTV is the practice of bundling channels. DirecTV wants the flexibility to offer a slimmed down bundle while Disney is demanding a more traditional fat bundle that includes a variety of programming, even while offering slimmer packages on its own platforms. DirecTV claims that Disney’s demand violates fair competition practices. Do you agree? Explain.
2. Consider DirecTV’s move to file a complaint about Disney with the Federal Communications Commission (FCC). What does DirecTV hope to achieve? What does the action mean for subscribers to DirecTV?
Sources|CNBC: https://www.cnbc.com/2024/09/09/directv-customers-might-miss-monday-night-football-amid-disney-fight.html; CNN: https://www.cnn.com/2024/09/09/business/directv-switch-sling-fubo/index.html; CBS News: https://www.cbsnews.com/news/disney-directv-debate-kamala-harris-donald-trump-blackout/; Unsplash: Photo by Erik Mclean on Unsplash