DirecTV is not letting its collapsed carriage deal with Disney go quietly. The company filed a complaint with the US Federal Communications Commission (FCC) on Saturday accusing Disney of anti-competitive behavior and negotiating in bad faith.
The complaint alleges that Disney imposed unreasonable conditions on the distribution deal. This includes making demands related to the composition of bundles and also the reach of its programming, according to DirecTV.
The company claims that Disney pushed DirecTV to provide a broad bundle that includes several less popular channels, while offering leaner packages to its own customers. “Along with these anti-competitive demands, Disney has also insisted that DirecTV agree to a ‘clean slate’ provision and a covenant not to sue, both of which are intended to prevent DirecTV from taking legal action regarding Disney’s anti-competitive demands, which would include filing good faith complaints at the Commission. Not three months ago, however, the Media Bureau made clear that such a demand itself constitutes bad faith.”
Disney is continuing to negotiate with DirecTV. But Disney Entertainment co-chairs Dana Walden and Alan Bergman and ESPN chair Jimmy Pitaro didn’t exactly mince words in a joint statement they issued last week criticizing DirecTV.
“DirecTV continues to misrepresent the facts around our ongoing negotiations,” they said. “Our priority is to reach a marketplace deal that serves the needs of DirecTV and their customers, while also recognizing the value of our top-quality content and the significant investment required to create and acquire it. We believe there is a path to a fair and flexible agreement that strikes this critical balance and works for all sides, especially the consumer.”
According to a company spokesperson, Disney is open to flexible packages and wants a deal that’s in line with what other distributors pay for its valuable content..
The result of this battle, which has been going on for the last couple of weeks, could set some new bundling precedents. Disney has said it’s open to offering a variety of slimmer packages that give consumers more choice and control, which is what DirecTV wants to do. This could include kids and sports packages, as well pairing access to Disney’s linear networks and its streamers.
Disney removed Disney Channel, ABC, ESPN and other networks from DirecTV’s service last week when the existing carriage deal expired, affecting roughly 11.3 million subscribers.