Disney, AT&T in Carriage Dispute Impacting ABC, ESPN

Why would you not include locals in your most basic package?

The short answer is that locals are expensive. Comcast charges their cable TV subscribers $10/mo for them. Charter charges even more. They've increased their broadcast TV fee covering locals three times now in the last year, from $9 to $10, then to $12, and next month to $13.50/mo. And those are the two largest cable operators in the nation. Smaller operators probably negotiated even higher rates with all those local station owners (Sinclair, Nexstar, etc., along with the 4 major networks themselves which own their largest market affiliates). And cable TV services -- whether cable, telco, satellite or streaming -- always seem to be in a renegotiation standoff with one of those local station groups, resulting in a blackout that interrupts service on one of the channels their customers watch the most.

So if you're looking to cut costs from a pay TV bill, and take back some negotiating power with the locals, it makes sense for a pay TV provider to offer a low-cost package that simply doesn't include any locals at all and allow those customers who want them to integrate them for free using an OTA antenna. DirecTV already sends out a free tuner that plugs into the back of their Genie DVRs when a local station is blacked out. Why couldn't they include such tuners for free (or for a small fee) to customers who signed up for a new Starter package that doesn't include locals? Same holds true on AT&T TV (although in that case, the tuner would likely look more like Sling's AirTV tuner that plugs into your home's wifi network).

Of course, if you don't include ABC's, CBS's, NBC's and Fox's major market affiliates that they directly own in places like NYC, LA, Chicago, Philly, Washington, etc., then they're not going to let you include any of their cable channels in that package either. So no ESPN or Disney, no Fox News or FS1, no USA or MSNBC. But then sports channels (and Fox News) are the most expensive cable channels to carry anyhow. So by excluding all that stuff, and locals too, you can end up with a $20 service like Philo or a $15 service like AT&T Watch TV.

If AT&T took their Watch TV package and made it a Starter package in AT&T TV, no one -- not AT&T nor the major network owners -- would expect it to be that service's most popular package. No, it would just be a cheap alternative for folks who either didn't care about their locals or could use an OTA antenna, and who also didn't care about sports and news channels (other than CNN and BBC World News). The mainstream package that AT&T TV would mainly steer customers toward would be the Plus package, which does carry locals plus the most popular sports, news and entertainment cable channels.
 
Remember when cable was just a way to get locals?
The short answer is that locals are expensive. Comcast charges their cable TV subscribers $10/mo for them. Charter charges even more. They've increased their broadcast TV fee covering locals three times now in the last year, from $9 to $10, then to $12, and next month to $13.50/mo. And those are the two largest cable operators in the nation. Smaller operators probably negotiated even higher rates with all those local station owners (Sinclair, Nexstar, etc., along with the 4 major networks themselves which own their largest market affiliates). And cable TV services -- whether cable, telco, satellite or streaming -- always seem to be in a renegotiation standoff with one of those local station groups, resulting in a blackout that interrupts service on one of the channels their customers watch the most.

So if you're looking to cut costs from a pay TV bill, and take back some negotiating power with the locals, it makes sense for a pay TV provider to offer a low-cost package that simply doesn't include any locals at all and allow those customers who want them to integrate them for free using an OTA antenna. DirecTV already sends out a free tuner that plugs into the back of their Genie DVRs when a local station is blacked out. Why couldn't they include such tuners for free (or for a small fee) to customers who signed up for a new Starter package that doesn't include locals? Same holds true on AT&T TV (although in that case, the tuner would likely look more like Sling's AirTV tuner that plugs into your home's wifi network).

Of course, if you don't include ABC's, CBS's, NBC's and Fox's major market affiliates that they directly own in places like NYC, LA, Chicago, Philly, Washington, etc., then they're not going to let you include any of their cable channels in that package either. So no ESPN or Disney, no Fox News or FS1, no USA or MSNBC. But then sports channels (and Fox News) are the most expensive cable channels to carry anyhow. So by excluding all that stuff, and locals too, you can end up with a $20 service like Philo or a $15 service like AT&T Watch TV.

If AT&T took their Watch TV package and made it a Starter package in AT&T TV, no one -- not AT&T nor the major network owners -- would expect it to be that service's most popular package. No, it would just be a cheap alternative for folks who either didn't care about their locals or could use an OTA antenna, and who also didn't care about sports and news channels (other than CNN and BBC World News). The mainstream package that AT&T TV would mainly steer customers toward would be the Plus package, which does carry locals plus the most popular sports, news and entertainment cable channels.

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Obviously they want more money, the question is how much more and is that the sticking point, or is packages/carriage the sticking point, or both. We aren't likely to find out anything unless the channels are actually dropped and the war of PR shaming starts.
ESPN will not have the leverage they once had. The next 10 years of renewals could become a problem for Disney.
 
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Obviously they want more money, the question is how much more and is that the sticking point, or is packages/carriage the sticking point, or both. We aren't likely to find out anything unless the channels are actually dropped and the war of PR shaming starts.

espn is already the most expensive station
they have zero leverage in my mind, drop em, let thier revenue go down
 
If someone has ESPN+ will they still get access to MNF and College Games? I sub to it, so wondering in case DTV loses ESPN, ESPN2, ABC, etc.....
 
One thing that didn't cross my mind in my earlier post is that AT&T's current negotiations with Disney will, I'm sure, include whether or not AT&T carries their new ACC Network and in which package it gets placed. Given that their SEC Network is already in the Plus package, it seems likely that we'd see the ACC Network go there too. Although, in exchange, perhaps AT&T gets to shove Disney XD and/or Disney Jr. up into Max or off into a hypothetical Family Extra Pack. (Aren't all those parents going to be subscribing to Disney+ for their kids anyhow?)
 
I only watch Formula 1/Formula 2 on ESPN. I see F1 TV is available for the USA, as ESPN is paying $0 for the F1 TV rights. The F1 TV & ESPN broadcast is the Sky Sports UK broadcast so would be exactly the same.

F1 TV has two plans.
F1 Pro(get live coverage & replays $10/month)
F1 Access(get replays on 48 hour delay $3/month)

I'm in the NYC TV market and too far away from towers to get ABC signal with antenna. Only show I watch on ABC is General Hospital but I subscribe to Spotify which gets me Hulu free so I won't miss General Hospital
 
Well that's the thing. One guy watches it for college football, another for formula 1. Another for NFL. And so on. It is the fact it carries a lot of sports (but mostly because of the NFL and college football) that makes it cost so much, because each individual person who watches one of the things it carries is going to scream bloody murder if Directv drops it for even a few days. Then there are the ABC O&Os in some of the largest markets which will upset a whole other group of people with more college football games lost, and the new fall TV shows in a couple weeks. And don't forget Disney, how many parents will hear from their kids when they can't watch whatever it is that's popular on Disney Channel these days.

If it was just the Golf Channel that was impacted then people who watch golf would be upset, but people who watch other sports wouldn't care. If it was just locals they'd have a couple weeks grace until the new season. If it was just Disney it would mostly be parents with younger kids would be impacted. But it is all of them. This will be a major shitstorm if Directv doesn't come to a deal.
 
My cable company breaks out the cost of the locals and it is over $15 now. Directv and Comcast are larger and probably get better rates (or haven't renegotiated with my station owners as recently) but it has doubled in just over two years, and word is that the networks are going to keep asking for more which means station owner groups will have to keep asking for more. I wouldn't be shocked to see it at $25 or $30 in a few years.

If my cable company allowed me to drop locals, and Tivo had a model with a CATV input and an OTA input, I'd gladly pay someone to put an antenna on my roof. There used to be one there when I bought the house, but when I had the roof replaced I had it junked because I figured I'd never use it. But saving $20+ a month would be a good reason to upgrade my Tivo and install an antenna!
 
Well Comcast owns NBC...they probably get a special free rate
My cable company breaks out the cost of the locals and it is over $15 now. Directv and Comcast are larger and probably get better rates (or haven't renegotiated with my station owners as recently) but it has doubled in just over two years, and word is that the networks are going to keep asking for more which means station owner groups will have to keep asking for more. I wouldn't be shocked to see it at $25 or $30 in a few years.

If my cable company allowed me to drop locals, and Tivo had a model with a CATV input and an OTA input, I'd gladly pay someone to put an antenna on my roof. There used to be one there when I bought the house, but when I had the roof replaced I had it junked because I figured I'd never use it. But saving $20+ a month would be a good reason to upgrade my Tivo and install an antenna!

Sent from my SM-G950U using the SatelliteGuys app!
 
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