Under the new agreement, DirecTV will offer a variety of genre-specific programming packages, including those dedicated to sports, entertainment, and family content. The satellite provider aims to adapt its offerings to better meet consumer preferences in the current streaming landscape. Additionally, Disney's streaming services—Disney+, Hulu, and ESPN+—will be included in select DirecTV packages, and the provider will also have the rights to distribute the streaming version of ESPN when it becomes available.
According to two sources familiar with the agreement, Disney has secured improved financial terms as part of this deal. "DirecTV and Disney have a long-standing history of connecting consumers to the best entertainment, and this agreement furthers that commitment by recognizing both the tremendous value of Disney’s content and the evolving preferences of DIRECTV’s customers," the companies stated.
The previous dispute had led to DirecTV subscribers missing out on popular programming, including ESPN's coverage of college football and the U.S. Open tennis tournament. They were also unable to view the ABC News-hosted U.S. presidential debate featuring Vice President Kamala Harris and Republican candidate Donald Trump. Vince Torres, DirecTV's chief marketing officer, noted that the programming blackout was resulting in subscriber losses during his remarks at the Goldman Sachs Communacopia + Technology Conference in San Francisco.
Disney and DirecTV have reached a consensus just before the Emmy Awards broadcast on ABC, where the media powerhouse is expected to achieve significant success, bolstered by three of the year's most-nominated shows: "Shogun," "The Bear," and "Only Murders in the Building." For many years, distributors like DirecTV and content providers such as Disney have engaged in disputes over pricing as the expenses associated with television packages have escalated.
A key factor supporting the television industry has been the long-standing practice of "bundling," which requires pay TV distributors to include and support less popular networks, like Freeform, in exchange for access to highly sought-after channels like ESPN.
Contractual agreements also dictate the extent to which distributors must make this content available to their subscribers. Historically, sports programming has served as a stronghold for the pay TV sector, consistently drawing viewers even as cable and satellite providers lose subscribers.
However, as audiences shift towards streaming services, sports content is also transitioning. Major events, including the recently concluded Olympics, have migrated to streaming platforms, along with professional games from the NFL and NBA.
The upcoming Venu Sports, a streaming service that consolidates programming from partners Disney, Warner Bros Discovery, and Fox, poses a potential threat to the pay TV model. The launch of Venu has been postponed due to an ongoing antitrust trial.
DirecTV has expressed a desire to provide its subscribers with genre-specific programming packages that cater to their preferences, similar to Venu, without compelling customers to pay for an extensive array of channels they do not utilize.
"We believe this genre offering is beneficial for consumers, and we are eager to present it to them," stated Torres.