Disney Network Channels Go Dark On DirecTV Over Carriage Dispute
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Disney Network Channels Go Dark On DirecTV Over Carriage Dispute | Disney Plus News
I'm going to be talking about Disney's dispute with DirecTV, but before we go any further, make sure you do hit that subscribe button to keep up with the latest Disney Plus News. Hi everyone, it's Roger here from What's On at DisneyPlus.com, it's time for quick Disney Plus News Roundup and today we're going to be talking about some major news that broke overnight, which is that Disney and DirecTV have now gone into blackout mode because now you can no longer watch Disney Channel's on DirecTV, that includes Disney Channel, Nat Geo, you've also got FX and obviously the big one, ESPN. Now this negotiations did sign the five-year deal back in 2019, it expired yesterday and in the middle of one of the matches of the US Open it just went blank and added a screen basically telling you that there's a dispute going on. Now, this has been a very difficult and tricky situation, so let's kind of break it down. So the major thing right now is both companies are both sort of slinging but at each other telling all their customers that it's the other person's folk, nothing that they do, it's all the other person's folk. So let's break down what the issues are right now. So obviously cable TV is in a massive problem, they are losing subscribers each and every month, the viewership numbers are dropping and companies like DirecTV are trying their best to try and keep people locked in, they're trying to keep people coming back and that's what they want to do and the way that they want to do this is they want to start offering a much more slimmed down cable package where you can get less channels and more importantly maybe you just get the sports stuff or you just get the entertainment things because they know that people don't like paying this a huge amount of money for all the cable channels. Now it's kind of unique with the US because they've kind of had this system where you had to have all the channels or none of the channels. Here in the UK always worked a little bit different, we always had the different bundles, if you wanted the entertainment package, the sports package or the movie package, you could do what you wanted and have a combination of the free. So it's always been like that here in the UK so it's kind of a bit weird really, but the US they've never done that so therefore unsurprisingly they don't want to change it too much but they know that the industry is changing, Disney wants to keep that thing rolling, they want to keep getting that money and they've stated that they view that they offer DirecTV some different options. For example last year with Spectrum TV they offer Disney Plus with ads included in the bundle in exchange for some of the channels closing down. That apparently has been offered as well, there's even reports that maybe they've even been offered the option of doing a sports only package similar to what happened with venue sports but venue sports is a whole other issue that we need to get in on but to the general gist of it is Disney wants either the same bundle or the same deal with maybe some more money and DirecTV wants a completely new package, different pricing structure and everything and they can't agree on a price. Now DirecTV over the weekend has been kind of like throwing shade at Disney kind of saying they put it out in the public and they're unwilling to negotiate and also the other way around Disney's been like they're not willing to negotiate with us. Now no doubt either side, people are going to be on either side there's very much a case of the anti-Disney thing no matter what they do, they're at fault and then they've got the anti-DirectTV people that are like screw you guys, I'm off the YouTube TV you know that's kind of the way it goes and I think this is the big issue is obviously what cable is that if you're watching these channels you're paying for them and now you don't have access to it so you're going to be a customer you're going to be pissed off but the ultimate thing is is you can just go okay you know message them email them whatever it is cancel it and you can fire up YouTube TV and then you can start watching the TV shows, you get Fubo you can get Hulu live TV you can get access to those channels very very quickly within minutes by signing up to another service and this is the big problem for DirectTV is they need to adapt they need to change because they know cable TV is a dying industry but I do think Disney are also trying to take advantage of the situation just trying to get as much money out of it before it completely goes they're also using the fact that it's the start of the NFL season so there's more pressure audience are even more likely to make a big move now and the simple truth is that once those people leave DirectTV because of this situation they're probably never coming back now Disney has put out a statement saying that DirectTV chose to deny millions of subscribers access to their content just as we head into the final week of the US Open and Gear it for the college football and the opening of the NFL season while we are open to offering DirectTV flexibility in terms of what we've extended to other distributors we will not enter into an agreement that will undervalue our portfolio of television channels and programs we invest significantly to deliver the number one brands in entertainment news and sports because that's what our viewers expect and deserve we urge DirectTV to do what's the best interest of their customers and finalize a deal that would immediately restore our programming meanwhile DirectTV has also put out a statement now this was a little bit longer but I'm just going to bring out some of the key bits the head of DirectTV went on to say that the Walt Disney company is once again refusing any accountability to customers distribution partners and now the American judicial system Disney is in the business of creating alternative realities but this is a real world where we believe you earn your way and must answer to your own actions they want to continue to chase maximum profits and dominate control at the expense of consumers making it harder for them to select the shows and sports that they want at a reasonable price he went on to say customer frustration is an all-time high as Disney shifts its best producers most innovative shows top-teamed conferences and entire leagues to their direct to consumer services while making customers pay more than once for the same programming on multiple different Disney platforms and Disney's only magic is forcing prices to go out while simultaneously making its content disappear now he also called out the fact that Disney are closing down its apps like Disney now and ABC and giving less value to their customers now obviously Disney have counted with that going well we're going to give you access to Disney plus with ads so that's their kind of way of getting around that one which I do think makes sense from a business point of view but again DirectTV is you know they're putting out this kind of idea that Disney is all at fault and you know there's you know they're trying to get out of it all just simple truth is is DirectTV is trying to keep its customers and they want to survive they were in a bit of a catch 22 they're both playing chicken of who needs each the simple truth is Disney doesn't need DirectTV they can all their content can go somewhere else and especially once the launch of ESPN flagship starts next summer where all of the ESPN content will be available on the ESPN app and within Disney plus and you're going to be able to go completely around cable and this is the big problem direct to consumer basically goes around the cable customers they don't need them and this is obviously Disney is going to want to have those 10 plus million subscribers but let's say a few million of them quit DirectTV and go to YouTube or Hulu this Disney still get their money that's the super fit and this time next year with the launch of the ESPN thing they are essentially at this point where these cable companies they're no longer as important as they once were and they've kind of lost that leverage of you know the essentially Disney's in a much more powerful situation of yes they want that money from DirectTV and they're established from it but they don't need it in the same way that DirectTV need it because simple truth is is that if they don't have those networks and especially ESPN so many of their customers are going to bail they want a slim-dying system and I think we're definitely at a point now where you know we're probably going to need it and I do think that Disney opened up Pandora's box with this whole venue sports situation so how that worked is they're obviously going to launch venue sports which was going to combine with Warner Brothers Discovery, Fox or for all their like linear channels through streaming for about 43 bucks a month it was supposed to launch last month obviously Fubo didn't like it they took it to court and they won a temporary injunction it's going to go to court probably in February next year it's blocking the launch of it and they've said it was uncompetitive antitrust laws this is where DirectTV is kind of coming talking about how all of this stuff that's come from it and they're trying to piggyback the power off of there I'm not sure if it's going to work because ultimately as I said Disney might need that money and whether or not they come to an agreement that's going to be the big thing who's going to blink first is DirectTV going to be losing enough customers that they start going look we need this we're going to have to make some kind of deal is Disney going to be like we want that you know 10 plus million every single month plus you know we want that so we're going to try and get that coming in it is a very tricky situation again this whole thing with venue sports is really open up Disney might be like look we will offer you an ESPN bundle and you know we'll offer you you know entertainment bundle kind of thing or I don't know how they're going to do it but they're going to want to offer everything on a la carte and the simple truth is I don't mean they can do everything on a la carte I mean who's going to sit there and go yeah can you add a dollar to my subscription or 50 cents for free form that geo but I don't want that geo wild that just is going to be a lot of admin a lot of things and also those channels are probably not going to have enough subscribers and viewers to make it warrant I do think those channels on a whole if they don't return to DirectTV those channels are very much days numbered anyway some of those ones that got removed from spectrum I think you know the little smaller channels free form that geo world etc I don't think they're going to be long for the world if they don't get and I think they're going to be gone either way even if there's a new deal those channels probably aren't going to come back and if there is a new deal I just can't see some of these channels existing because we're in a world where things are different all the focus really is on ESPN but there is there is some argument that obviously DirectTV is right and the fact that Disney's been refocusing all of its efforts on streaming moving its content there moving its best stuff there in cable customers are kind of getting sort of worst case scenario we're also getting that kind of weird thing where so much of streaming is still controlled by this cable system of next day episodes exists because cable had the right to get them first you know and I think you know the existence of Disney now all of this is because of the cable system it's all falling to pieces and they're all fighting for scraps to try and keep it going the simple truth is is DirectTV is a cable company that you know they need customers and they need content Disney has the content they are in a much more upper hand and the simple truth is is you can go around these cable companies and get it from other places and that does change the dynamic Disney does isn't going to undersell its stuff you know and there is that argument of Disney is spending billions of dollars buying sports rights and creating all these shows and DirectTV you know uses that content to try and make some money off of it direct to consumer takes out the middleman and DirectTV is the middleman and I think we are going to see more cable companies having this issue more changes there is and I don't think there is a simple thing of both companies both companies have been accused you know of corporate greed and all the rest of that's what they're there for their companies are there to make money they're not there to be a friend they're not there to be charitable services these are there to make money and they are negotiating to try and do it they're both trying to play the PR game to try and get it to spin some people will obviously will pick DirectTV side because anything Disney they do some people will just be like they're in the wrong no matter what Disney does it's in the wrong DirectTV trying to use his fubo things of trying to get around they want to completely restructure cable the simple truth is Disney in itself is not going to be the only reason for it you know you're going to have the other companies as well but cable TV is less and less important there are less subscribers to cable TV today than there was yesterday and there'll be less tomorrow there'll probably even less DirectTV customers tomorrow there is going to be this just continuing to declining as they've got to go around it that we are going to get to a point where you know you're going to be able to get access to ESPN and all these channels and stuff and you're not going to need these cable companies and they are and I think that bit gets a little bit thing of DirectTV is throwing all this you know there's mud away but they are fighting to keep this content because they know if they don't get it they're going to be gone and DirectTV has already been spun off into another company this could be a way of kind of doing stuff I don't know some cable companies are closing down because they just can't afford to run anymore but I do think we're at a point where this is going to have a major implication on the future of cable television it could speed up the decline or it could stretch it out longer if they do all these smaller bundles it's going to be interesting to see what happens over the coming week now the big NFL game obviously is going to be a big thing for them to get it sorted I'm not expecting a result I'm probably early part of this week they might go it could go longer they might never come to an agreement that's the key thing with these blackheads you know it always was that thing of well eventually they did it DirectTV has been in a dispute with Fox Dave's channels have never come back over a year plus later one of them has discovered it's been in a dispute with FUBO TV Dave's channel has never came back this simple truth is they don't need them anymore you're no longer the days of when you were locked into cable and if they'd lost access to it you had no other way of getting access to it because they were the only cable company in your street and you couldn't move and you had to do it and so therefore the cable companies had these entertainment companies like Disney they had them hold and they could be like you well we need it now we can go around them and yeah it's a very very very different situation um I wouldn't like to say which way it's going to go but it's going to be very very interesting to see what happens with the situation let me know your comments below I love to hear your thoughts and all of this um which which you know I always think it's kind of weird to think about who do you agree with and I think this you could agree with both and you can disagree with both ultimately you know people are going to be like you know the consumers the only one that is going to be losing out especially customers that are paid for it and this is the other thing is if they aren't getting if they are paying for it and they haven't got access to it you're going to get a refund are they going to get their packages reduced in price you know they can go both ways so that it's going to be interesting to see how all this comes together but let me know what you think I'd love to hear your thoughts on this go check us out over at what's on Disney Plus dot com and obviously if there's any major updates I will be doing on this video but also more importantly on the website any news as we get it it will be up there straight away but on that note guys thank you very much see you guys soon, bye guys! 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