Verizon warns customers about blackout of ESPN, Disney

Company’s agreement to carry Walt Disney-owned networks to expire Dec. 31

Verizon Communications Inc. warned that Fios TV customers may lose access to ESPN and Disney Channel among other networks if it can’t reach a new carriage agreement with the Walt Disney Co., the latest fight between media companies over carrying and paying for content. Verizon sent an e-mail to Fios customers Wednesday afternoon after Disney began running ads that Disney-owned networks may no longer be available to Fios subscribers. Verizon said in the e-mail it has been negotiating a renewal agreement with Disney to keep the networks, which include Disney and ESPN channels, as well as ABC affiliates in Philadelphia and New York, in the Fios lineup. Verizon said that as of Wednesday, Disney had rejected its offers. The agreement expires on Dec. 31 at 5 p.m. “Disney is currently proposing that Verizon pay hundreds of millions of dollars more for its programming, despite the fact that many of its key networks are experiencing declining viewership,” Verizon said in the e-mail. Disney also is demanding that Verizon include the ACC Network, a regional sports channel, in its lineup to continue carrying other Disney-owned channels, according to Verizon. “Our proven history of providing extraordinary value to consumers and distributors is unmatched,” Disney said Wednesday. “Our negotiations continue in earnest and we remain optimistic that we can reach a deal.” Pay-TV companies enter agreements with TV content providers for the right to distribute programming to their subscribers. The path to securing those agreements can result in sometimes public fights over pricing and access. In November, HBO and sister channel Cinemax, owned by AT&T Inc.’s WarnerMedia, went dark on satellite broadcaster Dish Network Corp. as the two sides couldn’t come to terms on a new distribution agreement. HBO had said it was the first time in its more than 40 years of operation that it went dark on a payTV provider. Shares of Disney closed up 5.5% on Wednesday, while Verizon was up 2.6%.

BEBETO MATTHEWS THE ASSOCIATED PRESS FILE PHOTO Verizon has told Fios customers that Walt Disney wants to raise programming fees as the two parties work to reach a new agreement.