Fox Corp. warns viewers of its networks of a possible DirecTV blackout; Pay TV operator frowns on ‘fear talk’

Just days before a carrier agreement with DirecTV expired, Fox Corp. viewers of its networks for a possible blackout while the companies continue to negotiate.

Fox began airing a crawl at the bottom of the screen today on networks like FS1, Big Ten Network and Fox News. The message informed viewers of the possible outage. The companies remain in active discussions ahead of the Dec. 2 midnight PT deadline.

DirecTV is one of the largest pay-TV operators and served more than 13 million US homes in the third quarter. The company is owned by AT&T and private equity firm TPG.

In a statement, Fox said it remains committed to reaching an equitable agreement with DirecTV for the continued distribution of our networks, which is a long-term relationship and not aligned with the market.

A deadlock could affect high-profile programs like the Big Ten Championship Game, World Cup and the NFL. While Fox is using several networks in its portfolio to bring viewers to Deadline, Fox News Channel is not part of this revamp, but the Fox Broadcast Network, FS1, FS2, the Big Ten Network and local Fox affiliates are all leading a new edition.

In a statement following the Fox warning, DirecTV said the outcome of the situation “depends solely on Fox” and said it was “working hard to reach an agreement,” adding that it was “a excellent track record with Fox. DirecTV accused its negotiating partner of using “the same old scare tactics for tired programmers.”

Fox issued similar warnings to Optimum parent company Altice USA, Roku and other distributors ahead of deadlines only to renew without a blackout.

As a public company, Fox has repeatedly reminded investors that it is in a period of renewal on nearly all of its pay-TV deals, calling it a tailwind given the continued popularity of many of its shows.

Fox CEO Lachlan Murdoch said during the company’s quarterly earnings call earlier this month that the company is at the start of what he called a “massive three-year cycle” of innovation. Despite the pressure on programmers given the secular decline in ratings and the acceleration of cord-cutting, Fox has maintained that it will remain aggressive in its dealings with distributors.

“Now that we’ve completed the first round of these renewals, I have to say that we’re extremely pleased with the outcome of these renewals, as we appreciate the distributors we’re bringing to the bundle and our commitment to the bundle,” said Murdoch. These innovations went very well and met all the expectations we had of them.”