(Associated Press via NewsEdge) Comcast and Walt Disney signed a landmark multibillion-dollar distribution deal that allows the cable operator to distribute Disney content through its video-on-demand service.
As part of the multiyear deal, Comcast, the country's largest cable TV operator, also agreed to buy Disney's 39.5% stake in the E! Entertainment Television channel for $1.23 billion. Comcast currently holds a 60% interest in the channel.
No other financial terms of the deal were disclosed.
Under the terms of the agreement, Comcast would spend about $1 billion annually to purchase programming such as the popular ABC shows 'Desperate Housewives' and 'Lost,' as well as other content from ESPN, the Disney Channel and Toon Disney, according to a person close to the deal who spoke earlier on condition of anonymity because it had not been formally announced.
The deal extends a content distribution agreement for the 10 ABC-owned broadcast television stations and many of Disney's TV networks, including Disney Channel, ABC Family, Toon Disney, ESPN, and ESPN2, among others, the companies said.
As part of the agreement, Comcast will launch a Spanish-language sports network dubbed ESPN Deportes, the companies said.
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