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ESPN, ABC and other Disney channels dropped from DirecTV in contract dispute

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Walt Disney Co.-owned channels, including ESPN and ABC stations, were knocked off DirecTV platforms Sunday after talks to reach a new distribution deal collapsed.

The blackout — which affects DirecTV’s nearly 11 million customer homes — hit before the kickoff of Sunday’s highly anticipated University of Southern California -Louisiana State University college football game and in the middle of ESPN’s coverage of the U.S. Open tennis tournament in New York. The impasse came at the deadline for a new distribution deal after weeks of haggling between the two companies over contract terms and fees that Disney charges to carry its programming.

Without an agreement, DirecTV and its U-Verse service lost the rights to carry Disney channels.

“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,” Rob Thun, chief content officer at DirecTV, said in a statement shortly after the channels went dark at 4 p.m. PST.

Sports fans will quickly feel the pinch. In addition to college football on ESPN and ABC, the new NFL season begins later this week. ESPN is set to start its season with a “Monday Night Football” game Sept. 9 between the San Francisco 49ers and New York Jets, in which Jets quarterback Aaron Rodgers is expected to return after suffering an injury a year ago.

Disney’s eight ABC stations, including KABC-TV Channel 7 in Los Angeles, are no longer available on DirecTV. That means viewers of local news and “Jeopardy,” “Wheel of Fortune,” “Good Morning America” and “Jimmy Kimmel Live” will be without some of their favorite shows. Customers in Fresno, San Francisco, Chicago and New York also lost access to their local ABC station.

Other Disney-owned channels, including Freeform, FX and National Geographic , are included in the outage.

“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,” read a statement from Disney Entertainment heads Dana Walden, Alan Bergman and ESPN Chairman Jimmy Pitaro. “We urge DirecTV to do what’s in the best interest of their customers and finalize a deal that would immediately restore our programming.”

It’s not clear how long the blackout will last. A year ago, a similar tussle between Disney and Charter Communications , which operates the Spectrum TV service, resulted in a 12-day blackout of Disney channels .

Hollywood Inc.

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Sept. 6, 2023

The Labor Day Weekend clash reflects the television industry’s economic strain .

The shift to streaming and resulting cord-cutting has devastated pay-TV companies . DirecTV has lost more than half of its subscribers in the last decade. The El Segundo company now has about 11 million subscribers, according to industry estimates.

This year marked the worse-ever industry drop in pay-TV subscribers, according to the MoffettNathanson financial research firm. During the first quarter, the industry lost nearly 2.4 million pay-TV homes in the U.S. — a 12% year-over-year decline, the firm said in a recent report.

Subscriber declines have squeezed Disney .

The Burbank entertainment company has long relied on billions of dollars in programming fees that it receives annually from DirecTV and other providers. The fees are calculated, in part, by the number of subscribers that receive the channels.

In addition, Disney’s ESPN has historically been the most expensive basic cable channel, costing distributors nearly $10 per month per subscriber home. Disney has sought to maintain those premiums to help pay for its pricey sports rights contracts, including long-term NFL and NBA deals.

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The challenges set the stage for contentious contract talks at DirecTV’s El Segundo headquarters.

The environment has changed dramatically since the last time the two companies hammered out an accord. That was in 2019 when DirecTV was wholly owned by AT&T. Since then, the phone giant has spun its television distribution group into a separate entity and taken on a private equity partner, TPG, to manage the business.

For the past year, DirecTV executives have been working on plans to increase its offerings to consumers.

DirecTV wants to offer genre-themed packages — think sports or general entertainment — to provide cheaper plans for customers who refuse to pay $100 or more each month for a traditional bundle with more than 100 television channels. Executives want to appeal to customers who have long pined for a way to sign up for only the channels they actually watch.

But, according to DirecTV, existing contracts with programmers prevent it from widely offering customers curated packages.

“Instead of allowing distributors like DirecTV to also develop smaller, more tailored packages at prices that reflect the value they get from the content, programmers have continued to impose and enforce strict bundling requirements,” DirecTV said in a position paper in late August.

Can ESPN survive while cable TV dies?

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Sept. 2, 2023

The expiration of the 2019 distribution deal with Disney has given DirecTV an opening to try to change contract terms.

The satellite TV company said it has asked Disney to ease a key distribution requirement — minimum penetration rates. For example, Disney’s deals require that DirecTV and other distributors provide ESPN to a minimum of nearly 80% of its customer base.

DirecTV maintains that such “antiquated” penetration rates “force pay TV customers to subscribe to many channels they may not watch,” and the contracts limit DirecTV’s ability to offer smaller and less-expensive packages. During the negotiations, Disney said it offered DirecTV with more flexibility to tailor “skinny” genre-themed packages that it wanted for its customers.

The Burbank company also agreed to work with DirecTV on the minimum penetration rates, Thun said.

“But not enough to really change the game for us,” Thun said in an interview. “We moved much further than they have [during the negotiations], and what they put on the table in terms of skinny bundles was not the total amount that we had asked for.”

Making a wholesale switch could reduce revenue flowing to Disney at a critical time.

Disney’s stock has been under pressure amid softness at its theme parks and resorts and shares have been trading near five-year lows. On Friday, Disney closed up nearly 1% to $90.38.

Disney at 100: Seven ways Walt’s company forever changed entertainment

From theme parks to animation and kids’ programming, Walt Disney Co. has revolutionized the entertainment business since its launch a century ago.

Oct. 16, 2023

Last year’s outage of ESPN and other Disney channels on Charter’s Spectrum ended with an agreement that saw several smaller Disney channels, including Freeform and Disney Jr., dropped from Spectrum’s lineup.

In the end, both companies said they came away with a win.

Charter didn’t force the issue of penetration rates. Instead, Disney and Charter agreed to widen the reach of the Burbank company’s streaming services, including Disney+ into Spectrum homes.

Disney executives had been hoping last year’s Charter agreement can provide a template for a pact with DirecTV.

In the end, the weekend talks broke down over economics, executives said.

“We continue to invest in really high-quality content — scripted entertainment, ABC News and sports rights,” Justin Connolly, Disney’s president of platform distribution, said in an interview last week.” All of those things continue to increase in cost for us and ... the rates that we are asking for are in-line with what we have with other providers in the marketplace.”

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The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.

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Meg James is a senior entertainment industry writer for the Los Angeles Times. She was the lead reporter for The Times’ coverage of the deadly “Rust” shooting on a New Mexico film set in 2021, work recognized by the Pulitzer Prize board as a finalist in breaking news. A member of the Company Town team for two decades, James specializes in covering television, corporate media and investigative projects. She previously wrote for the Miami Herald and the Palm Beach Post. A native of Wyoming, she is a graduate of the University of Colorado and Columbia University.

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Modified District Government Services for Labor Day

(Washington, DC) – On Monday, September 2, the District Government will observe the Labor Day holiday. While some services will be affected, many District employees will continue serving to maintain essential District operations.                  WHAT’S OPEN ON MONDAY, SEPTEMBER 2            Access to Emergency Shelter                  All low-barrier shelters for individuals experiencing homelessness operate year-round. The following low-barrier shelters are open 24 hours and will remain open all day on Monday, September 2nd. 

• New York Men’s Shelter  
• 801 East Men's Shelter 
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• Pat Handy Women’s Shelter  
• Harriet Tubman Women’s Shelter  

 Individuals and families seeking access to homeless services should call the DC Shelter Hotline at (202) 399-7093 or the Mayor’s Citywide Call Center at 311 at any time of the day or night.                    The Downtown Day Services Center (The Center) , located at 1313 New York Ave NW, provides walk-in services to guests with no appointment required. Center hours of operation are 9 am - 5 pm, Monday through Friday. Entry will be permitted on a first-come, first-served basis. Guests will be provided with a wristband that must be worn while in the Center. Available walk-in services include showers, laundry, medical & mental health treatment, computer access, electronic/mobile device charging, housing case management, employment counseling, harm reduction services, legal counseling, and other vital services. Full-capacity lunch services will continue Monday through Friday 11 am - 1 pm.                                  Zoe’s Doors Youth Drop-In Center  for residents experiencing homelessness, located at 900 Rhode Island Avenue NE, offers a safe place for youth 24 hours a day and will be open on Monday, September 2.              DC Department of Behavioral Health (DBH) : Residents in emotional or mental distress or concerned about family members or friends can call 988 anytime to talk with a trained crisis counselor for free, confidential support. The following services also are open on Monday, September 2:         

• The DC Stabilization Center, located at 35 K Street NE, is a safe place for people experiencing a substance use disorder crisis to get the help they need. Open 24/7 to individuals 18 years and older. Walk in or bring a loved one. No cost. No insurance required.      
• The Comprehensive Psychiatric Emergency Program known as CPEP provides 24/7 emergency psychiatric services for individuals 18 years of age and older. Walk in or bring a loved one. Located at 1905 E Street SE, Bldg. 14, or call (202) 673-9319.   No cost. No insurance required.  
• The Community Response Team (CRT) supports adults at home or in the community whose behavior suggests mental health or substance use disorder challenges with on-the-spot assessments and referrals to treatment services 24/7. Call (202) 673-6495.      
• The Children and Adolescent Mobile Psychiatric Service (ChAMPS) provides emergency, on-site help to children/youth 18 years or younger facing a behavioral or mental health crisis and their families in the home or community. Call (202) 481-1440.    

     The following Department of Parks and Recreation (DPR)  outdoor pools will be open on Monday, September 2 from 10 am to 6 pm, marking the final day of the 2024 season. For more details on outdoor pools, visit dpr.dc.gov/outdoorpools .   

 Spray parks will be open 10 am to 6 pm; details at  dpr.dc.gov/sprayparks . Outdoor parks, playgrounds, athletic courts, and fields will be open. All previously permitted events in these outdoor spaces will take place as scheduled.                 Modified Service Adjustments                                 The  DC Department of Public Works (DPW) will not collect household trash and recycling collection on Monday, September 2. Trash and recycling collections will “slide” for the remainder of the week into Saturday. For example, households that normally receive trash and recycling collections on Monday, September 2 will be serviced on Tuesday, September 3.      The Benning Road Transfer Station is closed for renovations until further notice.        The Fort Totten Transfer Station will be closed to the public on Monday, September 2. All services will resume on Tuesday, September 3 for bulk trash and recycling.              Construction                                  The  District Department of Transportation (DDOT)  will suspend construction and work zones for non-emergency work in roadways, alleys, and sidewalks within the District’s right of way. This includes manhole access and construction-related deliveries. Approved construction activities may resume Tuesday, September 3 during permitted work hours.                                 Lane Restrictions                    DDOT will suspend reversible lane operations city-wide on Monday, September 2, on the following: 

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      The  DC Department of Buildings (DOB)  does not normally permit construction on District Government holidays, and violations could result in a Stop Work Order and fines. No construction will be allowed on Monday, September 2, for the holiday without a companion Afterhours Permit. Without a companion Afterhours Permit, work for which a construction permit is required is illegal and could result in a Stop Work Order and may be subject to a $4,000 fine. Illegal construction reports can be made using the  Illegal Construction Inspection Request Form  or afterhours by calling 311. DOB offers many online services, tools, and resources, enabling customers to conduct business 24 hours per day, seven days per week.                 Parking Enforcement                    All parking enforcement will be suspended on Monday, September 2, except for Streetcar ticketing and towing. Parking enforcement will resume on Tuesday, September 3.        All  DC Circulator  routes are operating on normal schedule. DC Streetcar will operate on a normal schedule.           WHAT’S CLOSED ON MONDAY, SEPTEMBER 2         DC Public Schools (DCPS)  will be closed on Monday, September 2 and will resume on Tuesday, September 3.       DC Public Library (DCPL)  neighborhood locations and the Martin Luther King Jr. Memorial Library will be closed on Monday, September 2. For more information on available Library programs, visit  dclibrary.org  or download the Library’s app.               Department of Parks and Recreation (DPR)  recreation centers, community centers, and indoor aquatic centers will be closed on Monday, September 2.               The Department of Human Services Economic Security Administration Service Centers  will be closed on Monday, September 2.              The DC Health & Wellness Center  (77 P Street NE) will be closed on Monday, September 2.         DC Health’s Vital Records Division  will be closed on Monday, September 2.         DC Health’s Licensing and Renewal Division  will be closed Monday, September 2, with the exception of the online license applications system which will be available at  doh.force.com/dchealthrenewals/s/portal-page .            All Department of Motor Vehicles (DMV)  locations will be closed on Saturday, August 31 and Monday, September 2. Customers are encouraged to use online options by visiting dmv.dc.gov or downloading the agency’s free  mobile app .         The Department of Employment Services Navigation Call Center  and all-American Job Centers will be closed on Monday, September 2. Residents are encouraged to file unemployment insurance claims online at  does.dc.gov .                      The Sasha Bruce Youth Drop-In Center  for District residents experiencing homelessness will be closed on Monday, September 2.     The Latin American Youth Center Youth Drop-In Center  for District residents experiencing homelessness will be closed on Monday, September 2.     The Adams Place Day Center  for District residents experiencing homelessness will be closed on Monday, September 2.     The 801 E Day Center for District residents experiencing homelessness will be closed on Monday, September 2.    

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Fulton County offices and facilities will be closed on Monday, September 2, 2024 in observance of Labor Day. Offices and facilities will resume regular business hours on Tuesday, September 3, 2024. Public safety services are available 24/7.

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September 9, 2019

The Georgia Department of Labor seeks to work with public and private partners in building a workforce system that contributes to Georgia’s economic prosperity. We will accomplish this by creating opportunities and providing services that: Assist individuals to attain their work goals and increase self-sufficiency through employment, training, comprehensive rehabilitation, and support services, and Assist employers to meet their business needs through employee recruitment and selection services, workforce information, and technical support.

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