Lucas Shaw, a Bloomberg reporter with deep insights into media dynamics, joins for a riveting discussion on the Disney-DirecTV carriage dispute. They tackle the far-reaching impact of this conflict, particularly on sports fans missing key events like the U.S. Open. As the conversation unfolds, they explore shifting power dynamics in media negotiations and the role of subscriber habits in shaping content demands. Shaw also weighs in on Disney's sports leverage and hints at the future of controversial cinema related to Trump.
The ongoing dispute between Disney and DirectTV reflects a shifting power dynamic in TV carriage negotiations as viewer demand changes.
DirectTV's push for niche programming packages challenges Disney's traditional bundling strategy, highlighting evolving consumer preferences in content delivery.
Deep dives
The Changing Landscape of TV Carriage Disputes
Current negotiations between DirectTV and Disney highlight a significant shift in the dynamics of TV carriage disputes. In the past, channel owners typically held substantial leverage over distributors due to viewer demand for popular content like sports. However, as cord-cutting grows and the balance of power evolves, distributors like DirectTV are starting to push back, arguing they should not subsidize Disney's transition to streaming while being charged for content that is increasingly unavailable in traditional bundles. This change complicates negotiations, as both parties must navigate a landscape where fans are less reliant on specific providers and more inclined to leave for alternatives.
The Push for Niche Programming Packages
DirectTV's interest in offering smaller, niche programming packages marks a fundamental challenge to Disney's traditional bundling model. The pressure is mounting for DirectTV to provide tailored bundles that cater to specific viewing preferences, such as sports or children's programming, which contrasts with Disney's long-standing practice of bundling channels for broader audiences. While Disney is open to negotiating specialty packages, they are cautious about minimizing subscriptions to their established channels, fearing a loss of visibility and revenue. This fundamental clash over programming strategy exemplifies the struggle between maintaining profitability in a changing media landscape where consumer preferences are evolving.
Negotiation Strategies and Competition
As negotiations ensue between DirectTV and Disney, competition for audience attention intensifies, especially with the looming fall sports season. Each party aims to protect its financial interests, with DirectTV confronting rising costs for channels while Disney seeks to secure fee increases. A critical aspect of these talks involves ensuring both companies can maintain a competitive edge, as DirectTV fears losing subscribers if football and other viewer-favored content are unavailable. Observers note that if customers can easily switch services due to a lack of desired content, it alters the negotiation landscape, potentially forcing a compromise to maintain audience engagement on both sides.
Matt is joined by Bloomberg’s Lucas Shaw to discuss the contentious TV carriage dispute between Disney and DirecTV, leaving millions of customers unable to watch the U.S. Open, college football, and potentially 'Monday Night Football' starting next week. They unpack the details of this battle, debate who has more leverage, and predict who will win (03:20). Matt finishes the show with a prediction about the future of the Donald Trump origin story movie, ‘The Apprentice’ (25:31).
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