DIRECTV Subscribers Lose Access to Local TV Stations Owned by Nexstar
In a major blow to DIRECTV and DIRECTV STREAM subscribers, they have lost access to ABC, CBS, FOX, and NBC affiliates, along with CW stations owned by Nexstar. The blackout took effect at 7 PM Eastern time, leaving millions without some of their favorite local stations.
Nexstar, the largest broadcaster of local TV programs in the United States, had warned customers of the potential blackout late last week. The blackout also extends to U-Verse and DIRECTV STREAM subscribers, further impacting the number of affected viewers.
The blackout stems from a failed negotiation between DIRECTV and Nexstar. The television broadcaster claims that it offered DIRECTV an extension to the current distribution agreement until October 31, 2023, in order to continue negotiations. However, DIRECTV rejected the offer, leading to the blackout.
DIRECTV has accused Nexstar of seeking unwarranted price increases, which they argue would have a negative impact on the communities they serve. Rob Thun, chief content officer of DIRECTV, stated, “Nexstar has a long track record of forcing programming outages in an effort to unnecessarily raise prices for everyone at the expense of the communities they are licensed and entrusted to serve.”
Nexstar, on the other hand, argues that it is simply looking for a fair price. The company claims to have negotiated in good faith and offered fair market rates, similar to agreements reached with over 500 other distribution partners in the past three years.
This blackout comes amidst an ongoing legal battle between DIRECTV and Nexstar. Earlier this year, DIRECTV filed a lawsuit against Nexstar, along with Mission and White Knight, alleging illegal collusion and violation of federal antitrust laws. The lawsuit accuses Nexstar of manipulating and fixing prices of retransmission consent fees, threatening the future of local television.
DIRECTV claims that Nexstar is engaging in an “unlawful and anticompetitive aim” by using sidecar agreements with Mission and White Knight stations to circumvent FCC ownership caps. They argue that the three companies collude to raise prices and extract supracompetitive retransmission consent fees.
Nexstar has responded to the lawsuit, stating that their shared services agreements with Mission and White Knight are in full compliance with FCC rules, and each station group independently negotiates their own agreements. The broadcaster believes the lawsuit is without merit and looks forward to prevailing in court.
As the standoff between DIRECTV and Nexstar continues, subscribers will remain without access to several local stations. The impact of this blackout on viewership and negotiations between the two parties remains to be seen.