DirecTV gives grim response to customers angry over Disney blackout

Over the weekend, DirecTV faced (and remains to be facing) an incredible blackout during considered one of many most most a ought to-have times of the year for sports fans, inconveniencing and angering millions of customers.

On Sept. 1, amid the unofficial kickoff weekend for varsity football season and the United States Open, DirecTV customers were left outraged after encountering an unpleasant surprise. All Disney (DIS) networks such as ESPN, ABC, Freeform, etc., had disappeared from their cable channel lineup.

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The issue is consequently of an ongoing contract dispute between DirecTV and Disney. DirecTV is blaming Disney for taking an “anti-consumer approach” by “demanding” that DirecTV customers pay extra to get entry to Disney-owned channels.

“Disney is herding consumers far off from its network web web sites and apps to generate some distance greater subscription revenue for Hulu, Disney+, ESPN+ and future streaming aspirations,” said DirecTV in an announcement on Sept. 1.

DirecTV also alleges that hours earlier than Disney pulled its programming from its channel lineup, it demanded that DirecTV waive all claims that Disney's behavior is anti-competitive to arrive any licensing agreement.

In line with the allegations, Disney claims that DirecTV “continues to misrepresent the facts” around their contract negotiations.

DirecTV responds to frustrated customers

Aggravated DirecTV customers have since taken to social media to threaten to cancel their cable subscription with the company consequently of the absence of Disney-owned channels.

It be the week I sooner or later cancel @DIRECTV. I'm bored with missing shows and games.— TC Mainstreamer (@TrueNorth4ever) September 2, 2024

@DIRECTV I guarantee you, you are about to lose MANY customers! 8am the next day to come again morning when businesses open back up, I'M DISCONNECTING mine ASAP— jb (@jerlbrown) September 2, 2024

In line with every cancellation threat on X, DirectTV claimed that changing cable providers will never be the precise solution.

“Switching seriously is solely not always the answer,” said DirecTV in a tweet reply to an angry customer. “The loss of sports, shows, and movies impact the overall industry, including streaming services.”

To minimize the blow of the Disney blackout, DirecTV also announced that it can be providing customers with a $20 credit which may take as much as two billing cycles to apply.

DirecTV is already facing declining cable customers

The response from DirecTV comes during a time when the company, which is owned by AT&T (T) , is reportedly losing a considerable amount of subscribers amid the widespread cord-cutting trend where consumers are ditching cable for streaming. In step with an analyst from Leichtman Research Group, DirectTV allegedly lost 1.8 Million cable customers in 2023.

The group also estimates that the U.S. cable industry as a full lost over 6.9 million customers last year.

All through an earnings call on July 24, AT&T Chief Financial Officer Pascal Desroches claimed that DirecTV faced declining revenue throughout the 2d quarter of 2024.

“DirecTV distributions within the quarter were about $740 million, and we continue to foretell DirecTV cash distributions to assert no at the same rate to 2023, or by about 20% every year,” said Desroches throughout the decision.

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