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Comcast and the Walt Disney Company have signed a multibillion-dollar deal that will allow the cable operator to distribute Disney programming on its video-on-demand service.
The deal also saw Comcast agreeing to buy Disney’s 39.5 percent stake in the E Entertainment channel for $1.23 billion, writes the Associated Press (via The New York Times).
MediaPost points out that the deal takes care of three long-term problems for Disney: digital TV distribution, cable carriage of ABC stations and networks, and resolution of its partnership in E Entertainment.
The deal continues a content distribution agreement for the 10 ABC-owned broadcast stations and many of Disney’s TV networks, including Disney Channel, ABC Family, Toon Disney, ESPN and ESPN2, the companies said. Comcast has agreed to start a Spanish-language sports network called ESPN Deportes.
The shows Disney will allow Comcast to distribute on-demand include episodes of Desperate Housewives and Lost, as well as two unspecified new fall programs. The shows will be free within 12 hours of broadcast. Comcast will also add World News with Charles Gibson, Nightline and This Week to its on-demand roster.
CBS and NBC have made similar deals for VOD distribution, but this is ABC’s first deal to provide cable customers with content on-demand. Disney has had success, however, selling content via iTunes.
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