9 SEP 2024

DirecTV vs Disney: the telco will hike prices despite the blackout

This comes in the context of the blackout of ESPN, ABC, and other Disney networks. Simultaneously, DirecTV Accuses Disney Of bad faith negotiations In FCC Complaint.

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DirecTV subscribers just lost ESPN, ABC and other Disney-owned channels due to a still-unresolved contract fight — and now the pay-TV provider is informing customers that it’s hiking prices next month.The higher pricing for DirecTV’s satellite TV and streaming television services will take effect on or after Oct. 6, 2024, the company said in notices it began sending to subscribers earlier this week. Customers will see the new pricing in their next billing cycle, DirecTV said.  Simultaneously, DirecTV Accuses Disney Of bad faith negotiations In FCC Complaint.

“We’re adjusting the price of your television package in order to remain competitive in the marketplace, while still delivering the best possible programming,” the company says in the customer notice. “TV networks are continuing to increase the fees they charge DirecTV for the right to distribute the content they produce, including movies, shows, and sporting events. We remain steadfast in our commitment to bring you the best programming at a fair and reasonable price.”

As of Oct. 6, the price of DirecTV Stream Choice is going up by $6, to $114.99/month, and DirecTV Stream Ultimate is increasing $10, to $129.99/month. DirecTV’s satellite TV packages are also getting price hikes of between $2 and $10 monthly, depending on tier, also effective starting Oct. 6. In addition, regional sports fees for some satellite customers will be increasing by up to $2 monthly depending on ZIP code, but some subscribers will see no change, according to DirecTV.

The company failed to reach an agreement with Disney before the Sept. 1 expiration of their prior distribution agreement, resulting in ESPN, ABC, SEC Network, Disney Channel, NatGeo, Freeform and the rest of Disney’s networks getting pulled from the DirecTV lineup.

DirecTV has offered a one-time $20 credit to customers to account for the missing Disney networks. In an additional move to try to stanch subscriber cancelations during the blackout, DirecTV is offering a $30 credit to customers who sign up for either Dish Network’s Sling Orange package or Fubo’s streaming services. (The company noted that subscribers who previously claimed a $20 credit will be eligible for an additional $10 credit if they opt for the Sling and Fubo offer.)

In parallel, tensions with Disney have not eased. As Disney's networks remain dark, DirecTV has accused the company of negotiating in bad faith amid carriage renewal talks. After DirecTV filed a complaint with the Federal Communications Commission on Saturday, a Disney spokesperson told Deadline that this is a common tactic DirecTV has used in previous negotiations.

The filing comes one week after Disney’s networks went dark on DirecTV, impacting Disney, ESPN and ABC, with both sides pointing customers to pay TV alternatives. More than 11 million subscribers have been impacted.

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