DirecTV files complaint against Disney with FCC as impasse enters 2nd week
The impasse between DirecTV and Disney over a new broadcast rights deal has escalated further in the second week of the deal.
DirecTV filed a complaint with the Federal Communications Commission on Saturday night, accusing Disney of negotiating in bad faith.
Disney channels, including ESPN and ABC stations in nine markets, have been off DirecTV since the evening of September 1. That meant DirecTV customers were unable to watch most American football games and the final week of the US Open tennis tournament, including the women’s and men’s finals.
According to Leichtman Research Group, DirecTV has 11.3 million subscribers, making it the third-largest pay television provider in the country.
ABC and ESPN will have the âMonday Night Footballâ opener between the New York Jets and San Francisco 49ers. ABC will also produce and televise a presidential debate between Kamala Harris and Donald Trump on Tuesday in Philadelphia.
ABC stations in Los Angeles, the San Francisco Bay Area, Fresno, California, New York, Chicago, Philadelphia, Houston and Raleigh, North Carolina are not covered by DirecTV.
In addition to all ESPN Network channels and ABC stations, Disney-branded channels Freeform, FX and National Geographic Channel are dark.
In its 10-page complaint, DirecTV alleges that Disney is violating the FCC’s good faith obligations by asking Disney to waive legal claims related to any anticompetitive actions, including the ongoing packaging and minimum penetration requirements.
DirecTV has asked Disney to give consumers the option of offering cheaper, smaller bundles of programming, rather than larger bundles of programming that some viewers may not want to see.
The complaint states: “In addition to these anticompetitive claims, Disney has also insisted that DirecTV agree to a ‘clean slate’ provision and a non-litigation covenant, both of which are intended to prevent DirecTV from taking legal action with respect to Disney’s anticompetitive claims, which would constitute filing complaints with the Commission in good faith. Less than three months ago, however, the Media Bureau made it clear that such a requirement itself constitutes bad faith.”
DirecTV CEO Ray Carpenter said Tuesday during a conference call with industry and media analysts that they would not agree to a new broadcast deal with Disney without making changes to the bundling.
“We’re not playing a short-term game,” Carpenter said. “We need something that works for the long-term sustainability of our video customers. The determination is there.”
Disney has maintained since the blackout began that mutual disclosure of claims is standard practice after licensing agreements are negotiated and agreed to by the parties. It has also had one with DirecTV under its previous renewals.
A Disney spokesperson said, “We continue to negotiate with DirecTV to restore access to our content as soon as possible. We urge DirecTV to stop creating distractions and instead prioritize their customers by reaching a deal that will allow their subscribers to watch our strong upcoming lineup of sports, news and entertainment programming, starting with the return of Monday Night Football.”
Last year, Disney and Charter Spectrum â the nation’s second-largest cable television provider â were at an impasse for nearly 12 days before reaching an agreement just hours before the first NFL game of the season on Monday night.
___
AP sport: https://apnews.com/sports