DIRECTV vs. Disney: Does DIRECTV NEED to Settle This Weekend?

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

TV Answer Man, you wrote that a Disney deal could come this weekend. Don’t you think DIRECTV has to do it based on what their marketing guy just said? — Ron, Fort Lauderdale, Florida.

Ron, today (September 13) marks the 12th full day in the DIRECTV-Disney carriage dispute and we’re about to enter the second weekend. If the two companies don’t sign a new deal, DIRECTV’s subscribers could miss another weekend of college football and Monday Night Football (and The Emmys on Sunday night) on ESPN and ABC as well as the other Disney-owned channels. (The blackout affects DIRECTV satellite, DIRECTV Stream, U-verse and DIRECTV Via Streaming.)

Update: DIRECTV and Disney announce new deal; blackout is over.

There’s been no indication that a settlement is near, but DIRECTV CMO (Chief Marketing Officer) Vince Torres raised some eyebrows yesterday when he told a financial conference that DIRECTV’s subscriber losses “have not been immaterial” since the dispute began. He noted that many subscribers are upset over losing their games and they are responding by switching to other services.

In fact, DIRECTV has assisted the switchover by offering a $30 credit to subscribe to Fubo or Sling TV. The move was designed to encourage customers to maintain their DIRECTV subs while using a rival service to watch ESPN and ABC in the short term. But you have to wonder if it gave even more customers the idea to cancel. And once they cancel, they might not come back.

My educated guess here is that DIRECTV is about to reach a critical point where the Disney blackout could do irreparable damage to the company’s future. DIRECTV has already lost more than 14 million subscribers over the last nine years, leaving it with around 11 million. It can’t afford a mass exodus which could be triggered if this battle continues for even another week or two. Even loyal subscribers who have had DIRECTV for years will give up.

It also should be noted that DIRECTV is saving money during this dispute by not having to pay carriage fees to Disney during the blackout. But that benefit could also be erased with a significant increase in subscriber cancellations.

Consequently, as I wrote on Wednesday, I think there’s a strong chance of a DIRECTV-Disney settlement this weekend. DIRECTV needs to end this sooner than later. The company says it wants greater flexibility in which Disney channels it offers and in which packages. And by now, it probably has a good idea of how far it can push Disney to accomplish that goal. The time has come to hammer down the details.

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

Until then, happy viewing and stay safe!

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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