Disney and DirecTV end broadcast dispute and restore channels like ESPN before college football

Disney (NYSE:DIS) and DirecTV announced Saturday that they had reached a new agreement in principle that would restore channels such as ESPN and ABC to millions of subscribers and end a roughly two-week blackout.

DirecTV subscribers on September 1 found himself unable to access Disney (DIS) channels after the two parties failed to renew their distribution agreement before the deadline.

“We want to thank all affected viewers for their patience and look forward to restoring Disney's entire channel portfolio in time for college football and the Emmy Awards this weekend,” the companies said in a joint statement.

Among the terms of the new contract proposal is that DirecTV will pay “fair market” prices to carry Disney (DIS) channels.

The agreement ends a dirty dispute between the two companies, in the course of which DirecTV filed a complaint with the US Federal Communications Commission last Sunday. The dispute accuses Disney (DIS) of not negotiating in good faith and of engaging in anti-competitive behavior.

Other agreed “core points” include:

“Disney’s direct-to-consumer streaming services (Disney+, Hulu, ESPN+) will be included in select DIRECTV packages under a wholesale agreement and will also be offered à la carte.”

“The rights to distribute Disney’s upcoming ESPN flagship service directly to consumers following its launch at no additional cost to DIRECTV customers.”

DirecTV is co-owned by AT&T (NYSE:T) and the private equity firm TPG (NASDAQ: TPG).

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