Disney to Allow Satellite Giants to Offer Its Content Online
Earlier this week, satellite TV provider Dish Network (NASDAQ:DISH) announced a partnership with Walt Disney Co. (NYSE:DIS) that will allow Dish to create an Internet-based streaming service that Dish customers can use to access Disney-owned programming on their tablets, computers, smartphones, televisions, gaming consoles, and other devices. The agreement also ends all litigation between the companies over Dish’s controversial Auto Hop DVR service, which allows customers to skip over commercials. Now a spokesman for Dish’s biggest satellite competitor, DirecTV (NASDAQ:DTV), has told Reuters that it, too, is in the process of inking a similar contract with Disney.
“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 to Reuters 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.”
Both companies have contracts with Disney that are set to end in December, which these streaming deals will replace. The streaming agreement with Dish represents the first time a content provider has allowed a pay-TV operator to offer content for streaming online. Disney’s content includes not just the various Disney channels but also the popular ESPN sports networks and ABC’s channels, as well.
The deals allow all three companies to take advantage of the growing trend in online TV streaming, which has proved to be incredibly popular among consumers through services like Netflix (NASDAQ:NFLX).
“The creation of this agreement has really been about predicting the future of television with a visionary and forward-leaning partner,” Dish CEO Joseph Clayton said in the company’s announcement.