DIRECTV vs. Disney: DIRECTV Files an FCC Complaint Against Disney

By Phillip Swann
The TV Answer Man –Follow on X.
Former editor of Satellite DIRECT magazine. Reported on DIRECTV for 30 years.

DIRECTV announced this morning (September 8) it has filed a complaint with the Federal Communications Commission which says Disney is not acting in good faith in their carriage dispute. The complaint, which was filed last night, would seem to be bad news for DIRECTV subscribers looking for the week-long blackout of Disney channels to end before tomorrow’s Monday Night Football game on ABC and ESPN.

The satcaster says in the FCC complaint that Disney is requiring that any carriage agreement must include a promise by DIRECTV not to file any legal claims for alleged “anti-competitive” behavior by Disney. DIRECTV has supported Fubo’s efforts to stop the Venu sports streaming service, a joint venture of Disney, Warner Bros. Discovery and Fox. Fubo has won a preliminary injunction against Venu, a motion supported by DIRECTV and expected to be appealed by Venu’s owners.

“The negotiations have stalled because Disney insists on bundling and penetration requirements that a federal district court judge in New York recently found in the context of the “Venu” joint venture to be unlawful, anticompetitive, and “bad for consumers,” DIRECTV says in the complaint.”Disney wants to force DIRECTV to carry a “fat bundle” including less desirable Disney programming—while itself offering cheaper, “skinnier” bundles of programming that consumers want.  The Commission has never considered a good faith complaint in these circumstances, and DIRECTV may well wish to bring one in the future concerning Disney’s conduct.”

The complaint adds: “Along with these anti-competitive demands, Disney has also insisted that DIRECTV agree to a “clean slate” provision and a covenant not to sue, both of which are intended to prevent DIRECTV from taking legal action regarding Disney’s anticompetitive demands, which would include filing good faith complaints at the Commission.  Not three months ago, however, the Media Bureau made clear that such a demand itself constitutes bad faith.”

Disney has dismissed the DIRECTV Venu allegation as a ‘diversion’ and says it’s open to discussing the satcaster’s demand for greater flexibility in offering Disney’s channels in smaller, less expensive packages.

DIRECTV last Sunday night (September 1) lost all Disney channels, including ESPN, when the companies failed to reach a new carriage agreement. The blackout also affects DIRECTV Stream, U-verse and DIRECTV Via Streaming.

Along with its Fubo/Sling offer on Friday, the FCC filing strongly suggests the gap between DIRECTV and Disney remains large and that an imminent settlement is not likely.

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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