DIRECTV & Disney Move Forward with New Agreement Sept 2024

DIRECTV and Disney Announce Restored Channels and New Agreement for Satellite and Streaming Customers

DIRECTV, DIRECTV STREAM, and U-verse customers discovered over this past weekend that all Disney-owned channels, including ESPN, have been fully restored. Following a blackout that lasted almost two weeks, DIRECTV and The Walt Disney Company have reached a robust agreement in principle, ensuring uninterrupted access to Disney's entire network portfolio. This multi-year deal promises enhanced flexibility, additional content options, and a commitment to delivering unparalleled value to DIRECTV customers.

As part of this new collaboration, the agreement secures carriage of Disney's entertainment, sports, and news channels, including ABC, ESPN, Disney Channel, FX, and National Geographic. DIRECTV customers will also have the chance to access Disney’s popular streaming services—Disney+, Hulu, and ESPN+—as part of select packages or on an a la carte basis.

One of the most significant elements of this agreement is the future inclusion of ESPN’s direct-to-consumer streaming service, expected to launch in 2025, at no additional cost to DIRECTV subscribers. This marks a notable step in evolving how customers experience live sports and entertainment. We dive deeper into that topic below.

In a joint statement, DIRECTV and Disney emphasized their long-standing partnership and commitment to adapting to customers’ changing preferences. "This collaboration allows us to provide our customers with more options, tailored to their individual viewing habits, whether it’s through genre-specific bundles or by integrating both linear and streaming platforms."

For sports fans, this comes at an opportune moment with college football and the Emmy Awards airing this weekend. Channels like ESPN, ABC, and the SEC and ACC Networks are back in time to provide comprehensive coverage. DIRECTV’s Chief Marketing Officer, Vince Torres, shared that this agreement is pivotal in maintaining DIRECTV's promise of providing premium content to customers, including those that rely on its services for commercial use, such as sports bars and restaurants.

This new arrangement also reflects the ongoing transformation of the pay-TV ecosystem, where live sports content, especially ESPN’s coverage, remains a critical anchor for traditional television bundles.

ESPN Set to Launch its Own Streaming Service in Fall 2025 and DIRECTV Will Include It

A major highlight of this agreement is the inclusion of ESPN’s future direct-to-consumer (DTC) streaming service that is expected to launch in 2025. Disney has not announced the official name of the new streaming service yet but it will be groundbreaking and available to DIRECTV customers at no additional cost. With this, DIRECTV continues to cater to the growing demand for streaming services while ensuring the seamless integration of live TV and on-demand content.

Key Features of the ESPN Flagship DTC Streaming Service

Standalone Access: The new ESPN Streaming service will be different from ESPN+. The existing ESPN+ app offers select sports and events but the new flagship service will provide full access to ESPN’s live broadcasts, including major sports leagues such as the NFL, NBA, MLB, and college football. Fans will be able to open the new ESPN app

Comprehensive Sports Coverage: The service is expected to feature a wide range of live sports, including coverage of major events like Monday Night Football, NBA Playoffs, college football, and other marquee ESPN programs that are currently exclusive to cable channels.

Premium Programming: In addition to live sports, the flagship service will offer exclusive original shows, analysis, documentaries, and ESPN's well-known commentary and talk shows, delivering a complete sports viewing experience directly to consumers.

Seamless Streaming Experience: As a direct-to-consumer product, this new service will be available across multiple devices, including smartphones, tablets, smart TVs, and computers, allowing users to watch live games and on-demand content from anywhere with internet access.

No Additional Cost for Select Partners: DIRECTV and other partnered providers are expected to include this flagship service as part of select packages at no extra cost for their subscribers, further enhancing the value for current customers who already enjoy ESPN’s content.

Impact of the Launch

The launch of ESPN’s flagship DTC service marks a significant step by offering a direct route to ESPN’s high-demand sports content. The service is positioned to attract both die-hard sports fans and casual viewers who are seeking more flexible and affordable ways to access live sports.

This move aligns with the broader industry trend where media companies are shifting their focus to streaming as a key distribution channel. ESPN’s parent company, Disney, has been at the forefront of this shift, with Disney+ and Hulu already established as major players in the streaming market. By adding ESPN’s flagship DTC service, Disney is poised to further dominate the direct-to-consumer space in both entertainment and sports.

The service is also expected to play a crucial role in ESPN’s strategy to maintain its relevance and leadership in sports broadcasting, as viewership habits continue to evolve toward on-demand, digital platforms.

The resolution of disputes between Disney and all streaming platforms is important to American consumers who are increasingly turning to sports and entertainment programming.