Millions Lose Access to CBS and NBC After Failed DirecTV Negotiations

As networks prepare for the highly-anticipated return of their shows following the strikes, a whole lot of people have just lost CBS and NBC. According to TheWrap, local news stations owned by media company Tegna were no longer in service for DirectTV customers on Thursday night. The two services failed to come to a new agreement by the deadline, leaving five million subscribers across the country with no service.

“Despite months of effort, DirecTV has refused to reach a fair, market-based agreement with Tegna,” Tegna explained in a statement to the outlet. “As a result, DirecTV and AT&T U-Verse customers will lose access to NFL and college football conference championship games, as well as some of the most popular national network programming and top-rated local news. We urge DirecTV to continue to negotiate with us until a deal is reached that restores our stations to their customers.”

Negotiations were reportedly stalled after Tegna demanded double-digit annual rate increases. This would mean that customers would have to pay a premium for Tegna stations. Since Tegna’s demands are higher than what DirecTV is offering other providers, the company “suggested that customers could have the opportunity to subscribe to Tegna to help meet the rates requested, which would have resulted in a first-of-its-kind model that would give customers the ability to buy into stations they enjoy.”

“It’s disappointing, but certainly not surprising, that Tegna is just the latest to perpetuate what’s become the status quo for American broadcasters by using its territorial exclusivities and blackouts to extort ever-increasing rates for programming that remains free over-the-air,” Rob Thun, chief content officer of DirecTV, responded in a statement via PR Newswire. “We just can’t do this anymore–these price increases are unsustainable for the average consumer. It’s a badly broken model that erodes trust, eliminates choice, and keeps delving deeper into the wallets of our already overtaxed customers.”

How long this blackout could last is unknown. Disney and Charter had a similar failed agreement in September. Although they did eventually come to an agreement, Spectrum TV customers lost eight channels. It’s possible the same thing could happen between Tegna and DirecTV if a new negotiation and agreement doesn’t happen soon. It’s especially concerning not only for the upcoming midseason but with football playoffs and the Super Bowl happening soon, not to mention all of the college football championships, customers are not going to be happy if this isn’t resolved soon. As of now, there’s no telling when it could end.