The blackout is the latest sign of strain facing traditional television companies as customers shift to streaming. It took both of these companies to get into this position.
Pay-TV providers, including DirecTV, have absorbed stiff increases in the costs of licensing programming... The cost of carrying broadcast channels and sports channels has been skyrocketing.
DirecTV asked Disney for flexibility to offer smaller, genre-themed packages. Disney has long required pay-TV companies to carry its channels.
ESPN is the most expensive basic cable channel, costing distributors nearly $10 per month per subscriber home.
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