DirecTV and major station group Tegna have recently reached a carriage deal, finally putting an end to the programming blackout that had been in effect since November 30. This blackout affected approximately 5 million customers across the United States, causing much frustration and inconvenience. However, with the start of the NFL playoffs approaching, both parties were motivated to resolve the issue promptly. This article will explore the details of the deal and its implications for subscribers and viewers.
After weeks of negotiations, DirecTV and Tegna have finally come to an agreement that will bring the signals of Tegna’s 64 owned stations in 51 Nielsen designated markets back to DirecTV satellite systems, DirecTV Stream, and U-verse cable. This development will undoubtedly come as a relief to the affected customers who have been missing out on their favorite shows and local news for the past month. The joint statement released by the companies expressed appreciation for the patience of their subscribers and viewers, acknowledging the inconveniences caused by the blackout.
The timing of this deal is particularly significant, as it coincides with the start of the NFL playoffs. The league has had a remarkably strong ratings season, and with the postseason games on the horizon, the demand for live sports content is expected to surge. Given the popularity of football and the anticipation surrounding the playoffs, it is likely that broadcast tune-in will increase substantially. Both DirecTV and Tegna recognized the importance of resolving the carriage dispute before the playoffs commenced, ensuring that their subscribers would not miss out on this highly anticipated sporting event.
DirecTV’s separation from AT&T in 2021 marked a significant change in the company’s ownership and structure. As a privately held entity, 30% owned by private equity firm TPG, DirecTV now operates its traditional satellite business, as well as the internet-delivered DirecTV Stream and U-Verse cable. It boasts an impressive subscriber base of nearly 12 million in the United States, according to recent analysts’ estimates. This carriage dispute with Tegna affected approximately 40% of that customer base, which highlights the scale of the blackout and the impact it had on a significant portion of DirecTV’s subscribers.
Tegna, the major station group involved in the dispute, owns 66 stations in 52 markets, including some prominent DMAs like Dallas, Phoenix, and Denver. The company faced its fair share of challenges last year when a planned takeover by private equity firm Standard General was terminated after regulatory concerns were raised. Valued at $8.6 billion, including debt, the deal’s collapse raised uncertainties about Tegna’s future. However, in the midst of these challenges, the company has successfully navigated the recent carriage dispute with DirecTV, allowing its stations to regain their viewership and resume normal broadcasting operations.
The resolution of the carriage dispute between DirecTV and Tegna is a welcome development for the millions of affected customers. With the programming blackout finally lifted, subscribers can now enjoy their favorite shows and local news once again. The timing of this deal, coinciding with the NFL playoffs, demonstrates the parties’ understanding of their viewers’ demands and the significance of live sports content. As the broadcasting landscape continues to evolve, it is vital for companies like DirecTV and Tegna to work together to ensure that the price customers pay aligns with the value they receive. With this recent agreement, both companies have shown a commitment to addressing the needs of their subscribers, ultimately enhancing the viewing experience for millions of households across the United States.