Verizon, Disney reach deal avoiding Fios blackout

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Disney and Verizon on Sunday announced a distribution agreement to keep ESPN, ABC and other Disney-owned networks available on the Verizon-owned Fios network.

Multiple news outlets reported that the two sides reached an agreement following a months-long dispute over distribution rights. The existing contract between the two companies was set to expire on Dec. 31.

“Verizon and The Walt Disney Company have reached a broad-based distribution agreement. Details will be released in the coming days,” Verizon said in a statement, according to CNN.

{mosads}If the deal fell through, Fios customers would have lost ESPN and other Disney-owned networks. ABC affiliates in New York and Philadelphia would have also been blacked out, CNN reported.

CNN reported that Disney began running television ads in recent days warning customers of the impending blackout for Fios customers.

The dispute originated amid a dispute over a proposed rate increase to carry Disney-owned networks, including ESPN and other sports programming. Verizon argued it should not have to pay increased fees to Disney amid declining ratings on some of its networks.

Disney earlier this year purchased most of 21st Century Fox’s assets, giving it additional entertainment rights.

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