DirecTV Seeks to Renew Pay-TV Rules in Disney Talks, Bloomberg Reports

Walt Disney Co is in negotiations with pay-TV provider DirecTV to renew a contract that might result in channels like ABC and ESPN being blacked out if an agreement is not reached by September 1, according to a report from Bloomberg News.

Satellite television provider DirecTV is seeking to alter traditional contract terms that mandate cable and satellite-TV distributors to charge customers for channels like ESPN, irrespective of whether they watch the channel, the report said, citing people familiar with the matter.

Instead, DirecTV is proposing smaller channel packages focused on specific genres, such as kids’ programming, movies, news, local stations, sports, or Spanish content, the report added.

Disney is reportedly open to the suggestion of offering some sports-specific packages to other distributors. Furthermore, the company is willing to consider other types of smaller packages and negotiate lower minimum subscriber guarantees, according to the report.

Both Disney and DirecTV did not immediately respond to requests for comment.

Source: Reuters