After weeks of negotiations, DirecTV and major station group Tegna have reached a carriage deal to end a programming blackout that affected around 5 million customers across the United States. This blackout, which began on November 30, caused Tegna’s 64 owned stations in 51 Nielsen designated markets to be unavailable to DirecTV satellite systems, DirecTV Stream, and U-verse cable subscribers. However, with the start of the NFL playoffs this weekend, both parties were motivated to come to an agreement, as the surge in viewership during the playoffs suggests a strong ratings season for the league.
DirecTV and Tegna released a joint statement expressing their appreciation for their subscribers’ and viewers’ patience throughout the blackout. The statement also hinted at the ongoing efforts to ensure that the price paid by customers aligns with the value they receive. While the blackout posed challenges for both companies, DirecTV emphasized its commitment to working with station owners and networks to maintain a fair pricing model.
DirecTV, which was spun off by AT&T in 2021 and is now privately held with a 30% ownership stake from private equity firm TPG, has a strong customer base. Recent estimates suggest that the combined subscriber count of DirecTV’s traditional satellite business, DirecTV Stream, and U-verse cable exceeds 12 million in the United States. However, during the blackout, approximately 40% of that customer base was affected. Sources close to the matter indicated that the blackout primarily impacted stations affiliated with CBS or NBC, with Tegna owning 66 stations in 52 markets, including major cities like Dallas, Phoenix, and Denver.
Tegna, formed in 2015 after the broadcast operations were spun off from Gannett’s print holdings, has faced its share of challenges in recent years. Last spring, the company terminated a planned takeover by private equity firm Standard General due to concerns raised by regulators. The proposed deal, valued at $8.6 billion, including debt, raised red flags that ultimately derailed the acquisition. Despite these hurdles, Tegna has established itself as a significant station group with a strong presence in key designated market areas (DMAs).
The resolution of the DirecTV and Tegna carriage dispute brings relief to millions of customers who were affected by the programming blackout. As both companies express gratitude for the patience shown by subscribers and viewers, the focus now shifts to ensuring fair pricing that aligns with the value customers receive. The blackout also highlights the challenges faced by media companies when it comes to mergers and acquisitions, as regulatory concerns can significantly impact proposed deals. As the NFL playoffs kick off, viewers can now enjoy their favorite Tegna-owned stations on DirecTV, DirecTV Stream, and U-verse cable once again.