According to a statement released at the beginning of the month, Disney pulled its programming despite attempts by DIRECTV to reach new licensing agreements for a wide range of programming, including local ABC broadcast stations and affiliates, streaming content like Hulu, as well as Disney’s ESPN suite of channels.
DIRECTV claims that “Disney is again taking an anti-consumer approach,” demanding that DIRECTV customers pay for channels they don’t watch. DIRECTV also implies that its customers are forced to pay for access to Disney-owned streaming services they either aren’t interested in or may already possess.
According to the streaming service, Disney wanted DIRECTV to agree to waive all claims that Disney’s behavior is anti-competitive in order to reach a new licensing agreement or to extend access to its programming.
Disney also demanded DIRECTV to agree that all future lawsuits resulting from DIRECTV/Disney licensing agreements would be adjudicated in California, and not New York, because, as Disney counsel stated – SDNY Judge Garnett “didn’t understand the issues” when granting a preliminary injunction against Disney’s Venu Sports.
Disney, Fox and Warner Bros. Discover announced earlier this year plans to launch a sports-only streaming service called Venu Sports. However, the launch of the sports service has been blocked after Judge Garnett granted a preliminary injunction filed by Fubo.
DIRECTV says that on average, only two-thirds of its customers watch a combined three hours or more across the entire suite of 16 Disney channels, which includes local ABC stations. However, the outgoing agreement forces the large majority of DIRECTV customers to pay for the full slate of Disney channels that at least a third have shown little interest.
