DIRECTV vs. Disney: Disney Exec Says ‘Sizable Gap’ Still Exists; DIRECTV Wants ‘Sweetheart Deal’

By Phillip Swann
The TV Answer Man –Follow me on X.

A top Disney executive is offering a bleak assessment of his company’s carriage talks with DIRECTV, telling The Wrap last night that there’s a “fairly sizable gap” between the two sides. The current carriage agreement is set to expire on Sunday (September 1) and a failure to reach a new one could force a blackout of the entire Disney channel lineup, including ESPN and ABC affiliates in seven markets.

“We’re engaged in a fairly consistent and steady back and forth with DIRECTV, although I’d say we’ve got a fairly sizable gap on a number of fronts in terms of where we are in the negotiation,” Justin Connolly, Disney’s platform distribution president, told the publication.

This is the second time this week that Connolly has told the media that the carriage negotiations are not going well.

“I think, or I know, that they are trying to spin and push this narrative that they want to explore more flexible, skinnier bundles, and that we refuse to engage on that, and bottom line: That is blatantly false, and we’ve been negotiating with them for weeks, and we proposed a variety of flexible options … but yet they haven’t engaged with us on the options,” Connolly told The Hollywood Reporter on Tuesday,

Meanwhile, DIRECTV has been oddly quiet about the potential blackout, neglecting to warn subscribers about it on its TV Promise page or in social media such as X. Instead, the satcaster has referred reporters to a recent statement by DIRECTV content chief Rob Thun that calls for programmers to provide greater flexibility in offering channel bundles.

The Wrap writes that Connolly says Disney is open to discussing that with DIRECTV but charges the satcaster is seeking a “sweetheart deal.”

“Our view is we’re happy to engage in that conversation and that dialogue when you have more specifics, but we’re not going to let you warehouse rights from the Walt Disney Company because of something you might develop or create or imagine down the line,” Connolly said in the interview.

He added: “They want a deal that is better than what anyone else in the marketplace has done. They’re a private equity play and this isn’t a public service for them. We still have our eye on the consumer and the value that we bring in these relationships on behalf of the Walt Disney Company. Our goal is, and always is, to try to resolve this at the negotiating table and ultimately find something that benefits all parties, especially the consumer. Our hope is that DIRECTV will join us in that effort and try to finalize a deal so that their customers aren’t caught in the middle of this.”

If there is a blackout, it would also affect DIRECTV Stream, DIRECTV Via Satellite and U-verse.

The Disney basic cable channels that could be blacked out are: ESPN, ESPN2, ESPN Deportes, ESPNU, ESPN News, SEC Network, ACC Network, FX, FX Movie Channel, FXX, Freeform, National Geographic, Nat Geo Wild, Nat Geo Mundo, Disney Channel, Disney Junior, Disney XD, and BabyTV.

In addition, the following Disney-owned local networks could be removed: ABC7 Chicago, ABC7 Los Angeles, ABC7 New York, ABC7 San Francisco, ABC11 Raleigh-Durham, ABC13 Houston, and ABC30 Fresno.

The TV Answer Man will monitor this situation and report back here if anything significant changes.

The TV Answer Man is veteran journalist Phillip Swann who has covered the TV technology scene for more than three decades. He will report on the latest news and answer your questions regarding new devices and services that are changing the way you watch television. See the bio for Phillip Swann here.

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