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DirecTV now paying customers to subscribe to competitors as battle with Disney escalates
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DirecTV now paying customers to subscribe to competitors as battle with Disney escalates


New York
CNN

DirecTV wants its customers to stick with the service during an increasingly bitter dispute with Disney, which is threatening to block tonight’s “Monday Night Football” game. So DirecTV has developed an unusual strategy: It’s paying customers to subscribe to a rival.

DirecTV has struck deals with Sling, owned by rival satellite provider Dish Network, and Fubo to offer its customers credits and discounts if they sign up for competing streaming services. That’s how people can watch the game. The game will be broadcast on ABC and ESPN, two networks that can’t broadcast their own services.

Affected DirecTV, DirecTV Stream and U-Verse customers can get a free one-week trial of Fubo for two of its packages that include ESPN and Disney networks, and an additional $30 off the first month of service. DirecTV is also giving its customers a $30 credit to sign up for Sling’s orange tier, which includes ESPN channels.

DirecTV said the deals are a “small way” to help customers as the fight over its expired distribution deal with Disney stretches into a second week. DirecTV is still offering customers a credit, but has increased it from $20 to $30.

DirecTV filed a complaint with the Federal Communications Commission on Sunday, alleging that Disney had not negotiated in good faith and that the two sides are far from reaching an agreement.

In the 10-page complaint, DirecTV alleged that negotiations stalled because “Disney insists on bundling and penetration requirements that a federal district judge in New York recently ruled were unlawful, anti-competitive and ‘bad for consumers’ in the context of the ‘Venu’ joint venture.”

Last month, a federal judge temporarily blocked the launch of Venu Sports, a joint sports streaming venture between Disney, Fox Corp. and Warner Bros. Discovery, after Fubo filed a lawsuit against the media giants. (Warner Bros. Discovery is the parent company of CNN.)

More than 11 million subscribers have been affected after Disney last week pulled its ABC stations, ESPN and other networks from DirecTV’s lineup. The blackout also comes ahead of ABC’s upcoming presidential debate between Kamala Harris and Donald Trump, as well as the start of the NFL and college football seasons.

“We continue to negotiate with DirecTV to restore access to our content as soon as possible,” a Disney spokesperson told CNN. “We urge DirecTV to stop creating distractions and instead prioritize their customers by reaching a deal that will allow their subscribers to watch our strong upcoming lineup of sports, news and entertainment programming, beginning with the return of ‘Monday Night Football.'”

Still, the blackout hasn’t stopped DirecTV’s plans to raise prices for DirecTV Stream and traditional satellite services. Starting in October, monthly fees will increase by $2 to $10, depending on the tier and service a customer has.

–CNN’s Robert Ilich contributed to this report.