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 The deal would mirror a first-of-its kind agreement that Disney and
satellite rival Dish Network Corp announced earlier this week.
The Internet rights being discussed are part of a large-scale
programming agreement that would replace a deal between the
companies that expires in late December. Disney and Dish are in
negotiations but the timing of the new deal could be not be learned.
"The deal and terms are not unexpected as the Dish contract was the
most recent in the Disney timeline to expire," DirecTV spokesman
Darris Gringeri said on Wednesday. "The DirecTV contract is up next
and we're in the process of working with Disney on a similar
long-term agreement of our own."
A Disney spokesman declined to comment.
A new pact could give both Disney and DirecTV, the No. 1 satellite
operator, an additional revenue source as consumers gravitate toward
online video services such as Netflix Inc and watch more television
online.
The agreement between Dish and Disney marked the first time that a
U.S. pay TV operator has been given the flexibility to offer its
content over the Web through smartphones, tablets and computers
outside of a pay TV subscription.
In that agreement, Disney allows for Dish to stream linear and
on-demand content from ABC broadcast stations as well as cable
channels, ABC Family, Disney Channel, ESPN and ESPN2. Dish has not
revealed plans for its streaming service.
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DirecTV, which has 20.3 million subscribers, is expected to secure
better rates on programming than Dish, which has 14.1 million
subscribers, because of its size. Both companies have complained
about the rising cost of programming and have been involved in
high-profile blackouts over the past few years.
DirecTV Chief Executive Mike White has previously said the company
is working on an "over-the-top" video package to suit niche
audiences featuring Hispanic or kids programming, but has not yet
given details on that offering.
(Reporting by Ronald Grover in Los
Angeles and Liana B. Baker in New York; editing by Matthew Lewis,
Lisa Shumaker and Richard Chang)
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