♪ >>> ALL RIGHT. WELCOME BACK TO "POWER LUNCH." SHARES OF DISNEY ARE A LITTLE BIT LOWER TODAY -- BY THE WAY, THE ENTIRE MARKET IS DOWN TODAY. BUT DISNEY IS ALSO IN A DISPUTE WITH DIRECTV, PULLING ITS CHANNELS FROM DIRECT/V, PREVENTING CUSTOMERS OF DIRECTV FROM WATCHING COLLEGE FOOTBALL. TONIGHT MAY BE THE FINALE OF "THE BACHELORETTE." JULIA BOORSTIN HAS BEEN FOLLOWING THIS STORY AND SPOKE EARLIER TO THE HEAD OF ESPN. JULIA? >> WELL, BRIAN, THE MIDDLE OF THE U.S. OPEN, AHEAD OF SUNDAY'S COLLEGE FOOTBALL GAME AND BEFORE THE NFL SEASON OPENER, DISNEY PULLED ITS ABC STATIONS, ESPN AND OTHER NETWORKS FROM DIRECTV'S MORE THAN 11 MILLION SATELLITE SUBSCRIBERS ON SUNDAY. NOW THE CONTRACT DISPUTE BETWEEN DISNEY AND DIRECTV SPEAKS TO DISNEY'S FOCUS ON STREAMING AND CORD CUTTING. IT IS LOOKING TO OFFER SMALLER AND CHEAPER BUNDLES TO THEIR CUSTOMERS. DIRECTV SAYS, QUOTE, DISNEY IS AGAIN TAKING AN ANTI-CONSUMER APPROACH DEMANDING THAT CUSTOMERS FROM DIRECTV AND OTHER DISTRIBUTORS BE FORCED TO PAY FOR CHANNELS THEY DON'T WATCH. ESPN CHAIRPERSON TELLING ME THAT THEY HAVE BEEN FLEXIBLE AND WHAT DIRECTV SAYS IS FLAT OUT FALSE. >> WE NEVER WANT TO BLACKOUT. IT'S NOT GOOD FOR EITHER SIDE. IT'S NOT GOOD FOR THE CUSTOMER, OF COURSE. WE DID EVERYTHING WE COULD. WE WORKED VERY HARD TO REACH AGREEMENT. WE WERE UNABLE TO GET THERE. AND WE WERE UNABLE TO GET THERE BECAUSE DIRECTV HAS REFUSED TO ACKNOWLEDGE OR RECOGNIZE THE VALUE OF OUR CONTENT. >> WITH "MONDAY NIGHT FOOTBALL" AND ESPN LESS THAN A WEEK AWAY, THE PRESSURE IS ON BOTH SIDES TO GET THIS DEAL DONE. SO, THE REAL QUESTION IS WHETHER DIRECTV ENDS UP ADOPTING A DEAL SIMILAR TO WHAT CHARTER AND DISNEY AGREED TO LAST YEAR. THAT INCORPORATES ACCESS TO THE PRESSURE IS ON. AN AGREEMENT THAT WAS AGREED TO LAST YEAR HAS STREAMING SERVICE TO CHARTER CUSTOMERS. >> THERE'S MANY THINGS ABOUT THIS WHICH ARE INTERESTING, BUT THE FACT THAT THE DIRECTV PEOPLE HAD BEEN THROUGH THIS BEFORE. THE WAY THE COMPANIES ARE ACCUSING EACH OTHER OF HARDBALL, AND THE NET OUTCOME, DOES IT JUST PUSH PEOPLE TOWARD THE STREAMING PRODUCT? >> EVERYONE LOSES, RIGHT? >> BUT DOES DISNEY LOSE? DO PEOPLE SAY, LET'S AVOID THE DRAMA AND JUST JUMP TO THE STREAMING. >> WHERE ELSE WOULD CUSTOMERS GO? THE LONGER IT DRAGS OUT THE MORE LIKELY DIRECTV CUSTOMERS WILL LOOK FOR OTHER OPTIONS. THE LIVE SPORTS ARE MUST-SEE THIS TIME OF YEAR. THAT'S WHAT'S DRIVING THIS NEGOTIATION. THE FACT THAT THERE ARE SKINNIER BUNDLES AVAILABLE, THERE ARE SKINNIER STREAMING OPTIONS. THERE'S ALSO A QUESTION OF SPORTS, RIGHT? VENUE, WHICH IS THE STREAMING SPORTS BUNDLE THAT ESPN WAS SUPPOSED TO BE PART OF, IT IS NOT LAUNCHING THIS YEAR, BUT THERE'S AN ESPN DRECK-TO-CONSUMER SERVICE THAT THE FLAGSHIP IS WHAT THEY'RE CALLING IT SO FAR. THAT'S SET TO LAUNCH A YEAR FROM NOW. A YEAR FROM NOW THERE WILL B