U.S. cable-satellite TV programmers are again at odds with distributors. The latest bout is between Disney and DirecTV over distribution fees for its channels (including ESPN, FX, and Disney Channel), and re-trans fees (for ABC network and local affiliate O&O TV stations). With 11 million subscribers, satellite service DirecTV is the third largest U.S. video provider, after Charter and Comcast cable.
It is argued that a fee increase would reduce DirecTV subs in favor of streaming services. Another stickler point is the “minimum penetration level” required from DirecTV by Disney, in order to satisfy the advertisers’ demands. Requirement that is considered by DirecTV too high. The bottom line is that DirecTV is looking for reduced rates, while Disney argues that cost of content is going up, especially for sports rights, which justifies a fee increase.
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