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What to know about the Disney, ESPN blackout on DirecTV

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What to know about the Disney, ESPN blackout on DirecTV

Walt Disney Co. on Sunday pulled ESPN and other channels from DirecTV minutes before the kick off of a high-profile USC football game and during the U.S. Open tennis tournament — infuriating sports fans who found themselves in the middle of a contentious contract dispute.

More than 10 million DirecTV and U-Verse video customers were swept up in the feud when DirecTV lost its rights to carry Disney programming — including Disney-owned ABC television stations.

The two companies had been negotiating at DirecTV’s El Segundo headquarters for weeks, but failed to agree on a new licensing deal by the Sept. 1 deadline.

The blackout is the latest sign of strain facing traditional television companies as customers shift to streaming.

“Consumers are going to blame somebody but, really, it took both of these companies to get into this position,” Emarketer senior analyst Ross Benes said recently.

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Here’s what to know about the dispute:

Why is this happening?

Pay-TV providers, including DirecTV, have absorbed stiff increases in the costs of licensing programming as their customer base has eroded because of cord-cutting. TV distributors are struggling to make money on their video channel businesses and fear that big rate increases will only drive away more customers.

The cost of carrying broadcast channels (ABC, CBS, Fox and NBC) and sports channels, including ESPN, has been skyrocketing as the programmers look to pass along the increases they have agreed to pay sports leagues and conferences. Increasingly, the shrinking pool of traditional pay-TV subscribers has been asked to shoulder these increases.

DirecTV asked Disney for flexibility to offer smaller, genre-themed packages. Disney has long required pay-TV companies to carry its cable channels, including ESPN, in most of its customers’ homes. ESPN is the most expensive basic cable channel, costing distributors nearly $10 per month per subscriber home.

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That has led to one of the thorniest issues in the current dispute: Disney’s requirements for “minimum penetration” for its channels, including ESPN. Disney requires that ESPN must be delivered to about 82% of DirecTV’s subscribers.

Over the years, the minimum penetration practice has enabled Disney to collect huge fees, including from subscribers who don’t watch much sports. Pay-TV companies must pay penalties if they don’t meet the minimum threshold.

DirecTV argues that that since fewer than 40% of its customers regularly watch Disney sports content, it is unfair to burden those subscribers with the high costs of sports programming. Disney counters that it invests heavily in high-quality programming and has offered its channels, including ESPN, to DirecTV at market rates.

DirecTV is trying to relax those penetration rates, and the fees that it must pay when it doesn’t meet the threshold.

DirecTV satellite dishes in Culver City.

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(Allen J. Schaben / Los Angeles Times)

The satellite provider also notes that only 10% of its customer base regularly tunes in to kids programming — but more than 80% of its subscribers are paying for those channels.

In addition, DirecTV and other distributors also have been chafing over efforts by Disney and other entertainment giants to build their own streaming services, which compete with their longtime partners, the pay-TV companies. Disney, Warner Bros. Discovery and Fox Corp. this year teamed up to build a sports streaming service, Venu, as an alternative to companies such as DirecTV. The effort was challenged in court, and a federal judge in New York granted a preliminary injunction that temporarily blocks Venu’s launch.

How long will this dispute last?

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That’s unclear.

A year ago, a similar dispute between Disney and Charter Communications, which operates the Spectrum service, lasted 12 days.

After that contentious struggle, Charter dropped some smaller Disney-owned channels, including Freeform, and gained the right to offer Disney streaming services, including Disney+, as part of its bundle. However, the outage proved costly to Charter, which lost more subscribers than it anticipated.

The blackout ended just as ESPN’s first “Monday Night Football” game of the season was getting underway.

Typically, a dispute ends when both sides feel the economic pain.

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“There’s always a lot at stake,” Benes said. “But if [DirecTV doesn’t] have ESPN channels for the next three months, that will lead to even more cord-cutting. It could be another nail in the coffin.”

FILE - New York Jets quarterback Aaron Rodgers.

New York Jets quarterback Aaron Rodgers is expected to return on Sept. 9 for a “Monday Night Football” game after tearing his left Achilles tendon in last year’s New York Jets’ season opener.

(Adam Hunger / Associated Press)

What programs might be affected?

Customers who live in cities served by a Disney-owned ABC television station, including KABC-TV Channel 7 in Los Angeles, will see an interruption in some of their favorite programming, including “Good Morning America,” “Jeopardy” and local newscasts. Disney owns eight ABC stations, including in San Francisco, Fresno, New York, Chicago, Houston, Philadelphia and Raleigh-Durham.

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For now, much of the pain is being felt by sports fans. College football fans are still miffed that they missed the USC – Louisiana State University clash on Sunday, which saw the 23rd-ranked Trojans execute a thrilling last-minute victory over the No. 13-ranked Tigers.

ESPN has rights to the U.S. Open tennis tournament, which is in the latter rounds with the men’s and women’s quarter-finals and semifinals. The championships are this weekend.

College football is also huge on ABC and ESPN.

Monday marks the kickoff of “Monday Night Football” on ESPN and ABC, with a prominent pairing of the New York Jets against the San Francisco 49ers, two markets served by ABC-owned stations. The game is slated to feature the return of Jets quarterback Aaron Rodgers, who suffered a season-ending injury in last year’s “MNF” opener.

David Muir sitting at the ABC News anchor desk.

“World News Tonight with David Muir” is among ABC’s programs.

(Heidi Gutman / ABC News)

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ABC is also hosting the first presidential debate between Vice President Kamala Harris and former President Trump on Sept. 10. However, other networks are carrying ABC’s feed for the debate.

The Disney-owned network also will broadcast the 76th Primetime Emmy Awards show Sept. 15, so millions of customers won’t be able to watch the TV fan fest — hosted by father-and-son comedy duo Eugene and Dan Levy — if the dispute drags on for two weeks.

Is there a work-around?

Viewers can access ABC signals through a digital over-the-air antenna. But that won’t help viewers of Disney’s cable channels, ESPN, ESPN2, Disney Channel, FX or National Geographic.

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Competing services offer the Disney cable channels, including YouTube TV, Sling TV, Hulu + Live TV (owned by Disney), FuboTV and traditional cable and satellite providers, including Charter Spectrum, Cox Communications, Comcast and Dish Networks.

Can I get a refund?

Yes, sort of. DirecTV is offering customers $20 credits to compensate for the disruption. Customers must apply for the credit on an upcoming bill.

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Movie Reviews

Film reviews: ‘No Other Choice,’ ‘Dead Man’s Wire,’ and ‘Father Mother Sister Brother’

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Film reviews: ‘No Other Choice,’ ‘Dead Man’s Wire,’ and ‘Father Mother Sister Brother’

‘No Other Choice’

Directed by Park Chan-wook (R)

★★★★

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Brazil’s Wagner Moura wins lead actor Golden Globe for ‘The Secret Agent’

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Brazil’s Wagner Moura wins lead actor Golden Globe for ‘The Secret Agent’

Wagner Moura won the Golden Globe for lead actor in a motion picture drama on Sunday night for the political thriller “The Secret Agent,” becoming the second Brazilian to take home a Globes acting prize, after Fernanda Torres’ win last year for “I’m Still Here.”

“ ‘The Secret Agent’ is a film about memory — or the lack of memory — and generational trauma,” Moura said in his acceptance speech. “I think if trauma can be passed along generations, values can too. So this is to the ones that are sticking with their values in difficult moments.”

The win marks a major milestone in a banner awards season for the 49-year-old Moura. In “The Secret Agent,” directed by Kleber Mendonça Filho, he plays Armando, a former professor forced into hiding while trying to protect his young son during Brazil’s military dictatorship of the 1970s. The role earned Moura the actor prize at last year’s Cannes Film Festival, making him the first Brazilian performer to win that honor.

For many American viewers, Moura is best known for his star-making turn as Colombian drug lord Pablo Escobar in Netflix’s “Narcos,” which ran from 2015 to 2017 and earned him a Golden Globe nomination in 2016. He has since been involved in a range of high-profile English-language projects, including the 2020 biographical drama “Sergio,” the 2022 animated sequel “Puss in Boots: The Last Wish,” in which he voiced the villainous Wolf, and Alex Garland’s 2024 dystopian thriller “Civil War,” playing a Reuters war correspondent.

“The Secret Agent,” which earlier in the evening earned the Globes award for non-English language film, marked a homecoming for Moura after more than a decade of not starring in a Brazilian production, following years spent working abroad and navigating political turmoil in his home country as well as pandemic disruptions.

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Though he failed to score a nomination from the Screen Actors Guild earlier this month, Moura now heads strongly into Oscar nominations, which will be announced Jan. 22. “The Secret Agent” is Brazil’s official submission for international feature and has been one of the most honored films of the season, keeping Moura firmly in the awards conversation. Last month, he became the first Latino performer to win best actor from the New York Film Critics Circle.

Even as his career has been shaped by politically charged projects, Moura has been careful not to let that define him. “I don’t want to be the Che Guevara of film,” he told The Times last month. “I gravitate towards things that are political, but I like being an actor more than anything else.”

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Movie Reviews

Mana Shankara Vara Prasad Garu Review: USA Premiere Report

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Mana Shankara Vara Prasad Garu Review: USA Premiere Report

U.S. Premiere Report:

#MSG Review: Free Flowing Chiru Fun

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It’s an easy, fun festive watch with a better first half that presents Chiru in a free-flowing, at-ease with subtle humor. On the flip side, much-anticipated Chiru-Venky track is okay, which could have elevated the second half.

#AnilRavipudi gets the credit for presenting Chiru in his best, most likable form, something that was missing from his comeback.

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With a simple story, fun moments and songs, this has enough to become a commercial success this #Sankranthi

Rating: 2.5/5

First Half Report:

#MSG Decent Fun 1st Half!

Chiru’s restrained body language and acting working well, paired with consistent subtle humor along with the songs and the father’s emotion which works to an extent, though the kids’ track feels a bit melodramatic – all come together to make the first half a decent fun, easy watch.

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– Mana Shankara Vara Prasad Garu show starts with Anil Ravipudi-style comedy, with his signature backdrop, a gang, and silly gags, followed by a Megastar fight and a song. Stay tuned for the report.

U.S. Premiere begins at 10.30 AM EST (9 PM IST). Stay tuned Mana Shankara Vara Prasad Garu review, report.

Cast: Megastar Chiranjeevi, Venkatesh Daggubati, Nayanthara, Catherine Tresa

Writer & Director – Anil Ravipudi
Producers – Sahu Garapati and Sushmita Konidela
Presents – Smt.Archana
Banners – Shine Screens and Gold Box Entertainments
Music Director – Bheems Ceciroleo
Cinematographer – Sameer Reddy
Production Designer – A S Prakash
Editor – Tammiraju
Co-Writers – S Krishna, G AdiNarayana
Line Producer – Naveen Garapati
U.S. Distributor: Sarigama Cinemas

 Mana Shankara Vara Prasad Garu Movie Review by M9

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