DIRECTV-Disney Sign Multi-Year Content Distribution Pact

Zacks

DIRECTV (DTV), the largest satellite TV service provider in the U.S., and media mogul, The Walt Disney Company (DIS), have reached a multi-year distribution agreement covering a wide range of live, on-demand and streaming contents.

The renewed agreement will provide DIRECTV subscribers with access to Disney’s strong array of top-quality sports, news, kids and entertainment content across various platforms including TVs, computers, smartphones, tablets, gaming consoles and additional connected devices.

DIRECTV customers will henceforth be able to access online-video service and live feeds from all ESPN and Disney cable networks and ABC-owned and operated TV stations, both in and out of the home, on authenticated WATCH services like Watch Disney and Watch ABC. This will be made possible shortly via the DIRECTV Everywhere app and in early 2015 through Internet-enabled devices. Also, under the deal, DIRECTV will launch additional channels including Fusion, Longhorn Network, SEC Network, ESPN3, ESPN Goal Line and Buzzer Beater.

The agreement supports both DIRECTV and Disney’s objective of providing the best video content to their subscribers across numerous platforms. Both the companies have also decided to explore new avenues pertaining to impending over-the-top (OTT) offerings.

Meanwhile, DIRECTV has entered into a definitive agreement with AT&T Inc. (T) to sell its business to the latter for $48.5 billion. The proposed deal has been approved by the boards of both the companies and also by the shareholders. The transaction is expected to be a combination of cash and stock bid of $95.00 per share. The deal now awaits the approvals of regulators and is expected to be closed in early 2015.

Currently, DIRECTV carries a Zacks Rank #3 (Hold). A better-ranked stock that warrants a look in this sector is Vonage Holdings Corporation (VG) with a Zacks Rank #2 (Buy).

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