After missing their midnight deadline, Disney and Time Warner Cable have entered into a new carriage agreement, the media companies announced on Thursday.
Had a deal not been reached, Disney was threatening to pull the signal for ESPN on the same night that college football season was scheduled to start.
“We are pleased to have reached an agreement without any interruption in service,” Glenn Britt, Time Warner Cable’s chairman, president and chief executive officer, said in a statement.
Disney had sought to raise the fee it charges TWC for retransmission of its programming and for its online sports service, ESPN3.com.
"This multi-faceted deal recognizes the true value of our content and ensures that millions of Time Warner Cable and Bright House Networks’ customers will continue to get the very best entertainment, news and sports programming on television, without interruption, for years to come,"Anne Sweeney, co-chairman, Disney Media Networks and president, Disney•ABC Television Group, wrote employees in a company wide memo announcing the deal.
Terms of the long term deal were not disclosed, but analysts expect that in exchange for averting a blackout, Disney may hike its fees by 5 to 10 percent. That would result in concessions of up to $110 million annually. That increased cost will likely be passed along to consumers.
Disney has shown a willingness to make good on its blackout threats. In February, the deadline for a retransmission agreement between Disney and Cablevision came and went, resulting in the network pulling the signal to ABC on Oscar night. Viewers in the New York area missed the first 15 minutes of the awards show.
As part of the deal, Disney will provide Time Warner Cable and Bright House Networks cable customers with access to ABC Family, Disney Channel, Disney XD, ESPN, ESPN2, ESPNEWS, ESPNU, ESPN Classic, ESPN Deportes, and SOAPnet. The deal also includes a suite of local affiliates such as WABC in New York, KABC in Los Angeles, WTVD in Raleigh-Durham-Fayetteville, WTVG in Toledo, and associated HD cable networks.
Subscribers also will have access to online content and expanded video-on-demand services.
Here's the full text of Sweeney's company wide memo:
From: Anne Sweeney
Sent: Thursday, September 02, 2010 5:34 PM
Subject: DATG/ESPN Time Warner Cable Agreement Reached
Great news!
I’m very happy to share with you that the Disney/ABC Television Group and ESPN have successfully concluded negotiations with Time Warner Cable on new carriage agreements. This multi-faceted deal recognizes the true value of our content and ensures that millions of Time Warner Cable and Bright House Networks’ customers will continue to get the very best entertainment, news and sports programming on television, without interruption, for years to come. Details are in the press release below.
The new, long-term agreement covers the entire breadth of our video and digital services. Some highlights of new facets in this deal include:
· Carriage for Disney Junior, the new 24-hour basic channel for preschoolers scheduled to launch in 2012.
