Disney’s lawyers are reportedly being trashy again. A recent carriage dispute with DirecTV led to Disney-owned channels going dark after an agreement could not be reached between the two companies. As Disney did to Charter Spectrum customers, they waited until a major sporting event to shut off channels like ESPN, which has led to customer outrage.
All Disney channels have gone dark, including ABC, ESPN, Disney Channel, Disney Junior, Disney XD, ESPN, FX, National Geographic, and more.
Now, DirecTV claims that Disney offered them an extension to keep the channels live, but only if DirecTV agreed to waive rights to any future lawsuits claiming that Disney’s behavior was “anti-competitive.”
Rob Thun, DirecTV’s CCO, said:
“The Walt Disney Co. is once again refusing any accountability to consumers, distribution partners, and now the American judicial system. Disney is in the business of creating alternate realities, but this is the real world where we believe you earn your way and must answer for your own actions. They want to continue to chase maximum profits and dominant control at the expense of consumers — making it harder for them to select the shows and sports they want at a reasonable price.”
Disney has done this before.
Last year Disney pulled this on Charter Spectrum customers after “demanding a new long-term contract that raises rates and provides “limited packaging flexibility, with the cable provider claims will significantly raise costs on their subscribers and will “saddle” them with channels they may not want but will have to pay for.“
DirecTV is the nation’s third-largest pay-TV provider, with over 11 million customers, and Charter Spectrum has over 14 million customers.
Disney negotiated a deal with Charter Spectrum, giving customers ad-supported Disney streaming channels with their cable bundle. Thus, Disney gained a subscriber boost that it could leverage for better advertising rates. I wonder if they are attempting to do the same thing here.
Two of Disney’s contenders for the CEO position, Dana Walden (with Disney Entertainment co-chairman Alan Bergman, and ESPN chairman Jimmy Pitaro said:
“…while we’re open to offering DirecTV flexibility and terms which we’ve extended to other distributors, we will not enter into an agreement that undervalues our portfolio of television channels and programs. We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that’s what our viewers expect and deserve.”
Antitrust complaints have emerged against Disney.
Complaints about Disney forcing unwanted channels into deals or increasing pricing on competitors to make they less competitive has led to lawsuits including a current one with FuboTV over the upcoming Venu Sports service Disney is trying to launch with Fox and Warner Bros. Discovery.
Advertisers also have worried that Disney dealings could lead to increased costs as they leverage their market share after joint ventures and mergers. This led to antitrust issues in their merger with Reliance Industries in India. Disney and Reliance had to agree to some regulations before they were allowed to merge.
Disney is seemingly worried about more allegations of “anti-competitive” behavior, which is likely the reason for this attempt to force DirecTV to agree to such a demand.
What do you think? Comment and let us know!
Source: AP,
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