Verizon and Disney reach a deal to avoid Fios blackout

Disney and Verizon have reached an agreement to resolve a high-stakes spat over programming fees that threat...

Posted: Dec 31, 2018 8:53 AM
Updated: Dec 31, 2018 8:53 AM

Disney and Verizon have reached an agreement to resolve a high-stakes spat over programming fees that threatened to knock ESPN, ABC and other Disney-owned channels off of Fios' TV network.

"Verizon and The Walt Disney Company have reached a broad-based distribution agreement. Details will be released in the coming days," Verizon announced Sunday.

ABC Inc

Broadcasting industry

Business and industry sectors

Business, economy and trade

Cable and television industry

Companies

Media industry

Verizon Communications

Walt Disney Company

The two companies had until 5 pm ET on December 31, to come to terms before Verizon would stop carrying Disney channels. ABC affiliates would also have been blocked for Fios customers in New York and Philadelphia.

The dispute had remained behind closed doors for months but spilled out to the public this week after Disney began running ads on TV. The commercials said ABC and ESPN could be blacked out in January, preventing some Fios customers from watching the Rose Bowl, some NFL playoff games and other sports programming.

"Our proven history of providing extraordinary value to consumers and distributors is unmatched," an ESPN spokeswoman said in a statement. "Our negotiations continue in earnest and we remain optimistic that we can reach a deal."

Verizon (VZ) responded with an email to Fios customers, urging them to "rest assured" that it plans to reach a "fair agreement" -- though the company acknowledged that Disney had rejected previous offers.

"Despite what you may be hearing from Disney, we have been negotiating a renewal agreement to keep their networks," the company told customers. "Disney is currently proposing that Verizon pay hundreds of millions of dollars more for its programming, despite the fact that many of its key networks are experiencing declining viewership."

Verizon says Disney (DIS) proposed a rate increase and demanded the company start including its ACC sports network. The company told customers rising programming fees make TV packages more expensive.

"We are standing up to networks like Disney, refusing to accept these huge increases," Verizon said.

Disputes over fees are common. As television viewership declines, media companies are demanding more for their content to make up for lost revenue, while cable and dish providers balk at raising rates for fear of losing even more customers.

But the disputes are typically resolved before stations go dark. There are notable exceptions, however, including last year's CBS-Dish Network fight that blacked out CBS -- and NFL games -- over Thanksgiving 2017.

Article Comments

Mason City
Clear
71° wxIcon
Hi: 76° Lo: 56°
Feels Like: 71°
Albert Lea
Clear
68° wxIcon
Hi: 73° Lo: 57°
Feels Like: 68°
Austin
Clear
72° wxIcon
Hi: 76° Lo: 58°
Feels Like: 72°
Charles City
Clear
70° wxIcon
Hi: 74° Lo: 57°
Feels Like: 70°
Rochester
Clear
69° wxIcon
Hi: 73° Lo: 55°
Feels Like: 69°
Tracking Our Next Chance for Severe Weather
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Making youth sports affordable

Image

local sports program helps players become community leaders

Image

"What's On Wednesdays" in St. Charles

Image

Tracking a Sunny Start to Wednesday

Image

Re election kickoff watch party

Image

Rallying for Sudan

Image

Extra speed enforcement

Image

Local sports highlights from Tuesday

Image

Renewing the Mental Health Coordinator

Image

Four IA Counties meet to discuss disaster recovery

Community Events