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    Disney and DirecTV Reach Deal, Ending ESPN Blackout

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    The agreement ends a two-week dispute that had prevented many of DirecTV’s 11 million customers from watching programs like Monday Night Football.Disney and DirecTV said on Saturday that they had reached an agreement that will allow channels like ESPN and ABC to return to the satellite TV service.The deal ends a two-week blackout that prevented many of DirecTV’s 11 million customers from viewing programs like Monday Night Football and the U.S. Open tennis tournament as the two sides haggled over terms of a new distribution agreement.The pact was struck in time to avoid alienating viewers who wanted to watch college football on ESPN and the Emmys, which will air on Sunday on Disney’s ABC broadcast network.“DirecTV and Disney have a longstanding history of connecting consumers to the best entertainment,” the companies said in a joint statement. “And this agreement furthers that commitment by recognizing both the tremendous value of Disney’s content and the evolving preferences of DirecTV’s customers.”One of the big sticking points in negotiations over the last week was whether Disney — which spends lavishly on shows for the Disney+ streaming service — could continue to charge DirecTV high rates for traditional TV content. DirecTV argued that Disney was shortchanging its traditional TV customers by expecting the same fees for what is effectively less content.Under the terms of the new agreement, Disney’s streaming services, including Disney+, will be offered to DirecTV customers in select packages. That compromise has now become common in cable deals, with similar agreements reached by the cable giant Charter with Disney and Warner Bros. Discovery.The dispute between DirecTV and Disney underscored the harsh economic realities experienced by satellite TV networks, which do not have products like broadband internet that make their services harder to abandon.The deal will also allow DirecTV customers to watch the Disney Channel, Freeform, the FX networks and the National Geographic channels. Though the contract is still being finalized, service was restored on Saturday morning to DirecTV customers.DirecTV’s agreement with Disney comes amid reports that the company is working on a much larger deal that would transform the company. Earlier this week, Bloomberg reported that DirecTV is negotiating a merger with Dish, another TV provider, in a deal that would create a satellite TV giant. More

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      ESPN and ABC Go Dark on DirecTV in Feud With Disney

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      The outage struck on Sunday, cutting access for many DirecTV viewers to the U.S. Open tennis tournament on ABC.Disney’s channels went dark on DirecTV on Sunday, leaving millions of subscribers to the satellite TV service without access to marquee networks like ESPN and ABC and cutting off viewership to the U.S. Open tennis tournament.The dispute means that most of DirecTV’s roughly 11 million U.S. subscribers can’t watch ESPN; the ABC broadcast network, which airs the U.S. Open, was also blacked out for many customers.The outage is the latest instance of a routine dispute between a television programming company and its distributor resulting in a service disruption. Typically both sides must agree to new terms every few years, and failure to do so risks alienating customers who have grown increasingly disenchanted with having to pay for traditional TV. In the long run, these carriage disputes are unprofitable for both parties, and they are usually resolved in a few days.The contracts are usually written so they expire at periods of peak viewer interest, giving both sides an incentive to reach a deal before the channels go dark. Disney’s dispute with DirecTV was the latest example: the outage began on the eve of Labor Day, cutting off access for many customers who were settling in for the long weekend.Disney has found itself at the center of other disputes with TV distributors fed up with paying high fees for channels like ESPN when the company is spending lavishly to produce shows for Disney+ and its other streaming services. A year ago, Disney was locked in a standoff with the Charter cable system that was resolved after the two agreed to a pact that gave Charter’s customers access to Disney’s streaming services at a lower rate.The early hours of carriage disputes quickly involve lots of finger-pointing, with both sides blaming the other for making unrealistic financial demands that deprive customers of the channels they are paying for. In the streaming era, TV programmers sometimes encourage viewers to find their shows and events on a service like Hulu or Fubo that stream live sports.In a statement, Disney said it believed DirecTV was offering to pay too little for its programming.“We invest significantly to deliver the No. 1 brands in entertainment, news and sports because that’s what our viewers expect and deserve,” said the statement, from Dana Walden and Alan Bergman, co-chairmen of Disney Entertainment, and Jimmy Pitaro, the chairman of ESPN. “We urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”Rob Thun, DirecTV’s chief content officer, said in a statement that Disney is shifting content to its streaming services, while expecting higher prices from distributors.“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,” Mr. Thun said. He added: “Disney’s only magic is forcing prices to go up while simultaneously making its content disappear.” More

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      N.F.L. Sunday Ticket Verdict Is Thrown Out by Judge

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      The decision, five weeks after a jury awarded $4.7 billion in damages in an antitrust case, is a reprieve for the league.The $4.7 billion verdict against the National Football League for colluding to raise prices for its Sunday Ticket television package was overturned late Thursday by a federal judge, who disqualified expert testimony used by the jury to determine damages.The judge, Philip Gutierrez of U.S. District Court in Los Angeles, ruled a day after lawyers for the N.F.L. had asked him to exclude testimony from key witnesses for plaintiffs representing thousands of customers who bought Sunday Ticket, a season-long package that showed all out-of-town games and was sold by DirecTV.The jury’s verdict five weeks ago in favor of those plaintiffs threatened to upend the league’s strategy of selling exclusive television packages to broadcasters.In his 16-page decision, Judge Gutierrez said the plaintiffs’ two economic witnesses had used flawed methodology in their attempts to show that the league overcharged Sunday Ticket customers. The jury’s calculations of damages were thrown out because they were based on the witnesses’ testimony, which included comparisons to how college games are broadcast and unsubstantiated speculation on how the N.F.L. might sell games individually, the judge said.“The court finds that the jury’s damages awards were not based on the ‘evidence and reasonable inferences’ but instead were more akin to ‘guesswork or speculation,’” he wrote.Judge Gutierrez also said the jury had not followed his instructions for calculating damages, which in antitrust cases like this one are tripled and would have led to a $14.1 billion verdict against the league.“We are grateful for today’s ruling in the Sunday Ticket class action lawsuit,” the league said in a statement. “We believe that the N.F.L.’s media distribution model provides our fans with an array of options to follow the game they love, including local broadcasts of every single game on free over-the-air television.”Calls and text messages to Bill Carmody, a lawyer representing the plaintiffs, were not immediately returned.Before the judge’s decision, the N.F.L. said it was prepared to appeal the jury’s verdict. The plaintiffs can potentially appeal the decision to the U.S. Court of Appeals for the Ninth Circuit.The monthlong trial featured testimony from the N.F.L.’s commissioner, Roger Goodell; Jerry Jones, the owner of the Dallas Cowboys; and Sean McManus, who recently retired as the chairman of CBS Sports.Last season, the N.F.L. ended its relationship with DirecTV and sold the rights to the Sunday Ticket package to YouTube for as much as $2.5 billion annually. More