Disney, Dish Avoid Blackout With Short-Term Deal

by Christopher Freeburn | October 1, 2013 9:32 am

Directv dish 630 300x168 Disney, Dish Avoid Blackout With Short Term Deal[1]Subscribers to Dish Network (DISH[2]) won’t lose access to a number of popular channels[3] … at least not right away.

Dish and Disney (DIS[4]) have agreed to a temporary deal that will postpone a possible blackout of Disney-owned channels, including ABC, ESPN, ABC Family and the Disney Channel on the satellite service. Specific terms of the agreement were not revealed, Variety notes.

The current contract between the companies expired on Sept. 30. Disney is seeking higher fees per subscriber for channels like ESPN. The satellite service provider is resisting those demands[5].

Charlie Ergen, Dish’s chairman, told reporters earlier this year that Dish and Disney could exist without each other, a signal that Dish may be prepared to weather a long blackout.

Clashes over carriage fees are becoming more common between pay-TV service providers and media companies. Over the summer, CBS (CBS[6]) channels went dark on Time Warner Cable (TWC[7]) systems in three major markets over a fee dispute. An agreement was reached restoring CBS to Time Warner[8] after about a month.

Dish has about 14 million subscribers in the U.S.

Shares of Dish and Disney both rose slightly in Tuesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/08/Directv_dish_630.jpg
  2. DISH: http://studio-5.financialcontent.com/investplace/quote?Symbol=DISH
  3. won’t lose access to a number of popular channels: http://variety.com/2013/biz/news/disney-dish-extend-tv-deal-as-talks-continue-1200683203/
  4. DIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DIS
  5. is resisting those demands: http://investorplace.com/2013/09/report-dish-might-blackout-disney/
  6. CBS: http://studio-5.financialcontent.com/investplace/quote?Symbol=CBS
  7. TWC: http://studio-5.financialcontent.com/investplace/quote?Symbol=TWC
  8. restoring CBS to Time Warner: http://investorplace.com/2013/09/time-warner-cable-customers-get-their-cbs-back/

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