DirecTV reportedly in talks with Disney for Internet deal

The satellite TV provider is in negotiations to offer the media giant's content as part of an Internet-based product, Reuters reports.

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Following Dish Network's lead, DirecTV is in discussions with Walt Disney to offer the media giant's content as part of an Internet-based offering, the satellite TV provider told Reuters.

The licensing discussions are part of a programming pact that would replace a contract set to expire in December, Reuters reported. The deal is reportedly similar to an agreement announced Monday that gives DirecTV rival Dish the right to stream video, live and on demand, as part of an Internet-delivered television service.

"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 told 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."

CNET has contacted Disney for comment and will update this report when we learn more.

In addition to providing both companies with new revenue streams, the deal is expected to help DirecTV better compete with Netflix and Hulu as more consumers switch to Internet streaming for their entertainment delivery.

Dish reached its deal with Disney as part of an agreement over its contentious Auto-Hop feature on the Hopper remote DVR. The feature lets customers automatically skip commercials on broadcast television recordings, but broadcasters say the technology could destroy the industry since program owners depend on advertising revenue to produce programming.

In order to renew an agreement that ensures Dish will be allowed to continue carrying Disney networks, the satellite television distributor agreed to disable the automatic ad-skipping feature on its Hopper network DVR for three days after a program is broadcast.

 

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