When Dish Network (DISH) launched Sling TV in 2015, ESPN was a major draw. The streaming cable service was the first way that cord-cutters could get access to the popular Walt Disney (DIS) sports network without an expensive cable subscription.
You could drop cable and pay Dish $35 a month for a package of about 30 channels which included ESPN. The service would go on to add other Disney content including its namesake children's channels and, in some markets, the ABC broadcast network.
The Disney-owned networks have also been a huge part of Dish's satellite cable service which is often the only cable option for people in rural areas.
Now, Dish and Sling TV subscribers have lost access to all Disney-owned channels in a dispute between the two companies over rights fees.
Robin Alam/Icon Sportswire via Getty
Dish Tells Its Customers About Disney Dispute
Dish posted a note on its website that tells its customers the basics of what happened. The streaming cable service noted that its contract with Disney had expired which led to the loss of a wide range of channels including:
Disney Channel, Disney Jr, Disney XD, ESPN, ESPN 2, ESPN 3, ESPN OnDemand, ESPNEWS, ESPNU, ESPN Deportes, ACC Network, ACC Network Extra, Longhorn Network, SEC Network, SEC+, Freeform, FX, FXM, FXX, Nat Geo, Nat Geo Wild, Nat Geo Mundo, ABC News Live, Jimmy Kimmel Live, BabyTV, BabyTV Arabic, BabyTV French, BabyTV Latino, BabyTV Mandarin, BabyTV, Polish, BabyTV Portuguese
"Our goal and priority is to reach an agreement with Disney that ensures you get the best possible value from Sling. We are working to bring your channels back as quickly as possible," the company told its subscribers.
In a separate press release, Dish took a much harsher tone.
"Disney has exploited its market position to increase fees without regard for the public viewing experience," said Brian Neylon, executive vice president and group president, Dish TV. "Clearly, Disney insists on prioritizing greed above American viewers, especially sports fans and families with children who watch their content."
The Dish executive also made it clear that he thinks Disney asked for a huge increase in rights fees in order to cause Dish to balk which would help Disney's own streaming services.
"As one of the nation's largest media conglomerates, Disney is more interested in becoming a monopolistic power than providing its programming to viewers under fair terms. Disney plans to spend billions on its direct-to-consumer streaming services such as Disney+ and ESPN+ — platforms not included for DISH and SLING customers," Dish shared.
Disney Responds to Dish's Claims
Disney released a statement that refutes Dish's claims.
"The rates and terms we are seeking reflect the marketplace and have been the foundation for numerous successful deals with pay-TV providers of all types and sizes across the country. We’re committed to reaching a fair resolution, and we urge Dish to work with us in order to minimize the disruption to their customers," the company shared.
Carriage disputes like this are quite common and have generally been resolved quickly. In this case, that may not happen because satellite television has been a declining business. Dish has lost roughly 750,000 customers over the past 12 months while Sling TV has lost about 300,000, according to data from Leichtman Research Group.
Those losses and the end of the idea that streaming cable will take over for traditional cable may make the Dish relationship less important to Disney, given the growth of its own streaming platforms.
Disney has not announced plans for a standalone version of ESPN but has suggested that will happen at some point in the future. The current ESPN+ service is extra programming and not a version of the cable channel.
