Comcast, Disney ink on-demand content deal

updated 4:30 p.m. ET Nov. 22, 2006

LOS ANGELES - Shows from ESPN, Disney Family, and ABC hits "Lost" and "Desperate Housewives" are among the slate of programming The Walt Disney Co. has licensed for viewing on Comcast Corp.'s video-on-demand service.

The licensing deal is part of a multibillion-dollar distribution agreement struck by the two companies on Tuesday and represents the first time Disney offers ABC broadcast programs over a cable video-on-demand service.

Video on demand services let digital subscribers watch archived shows and movies at any time.

As part of the multiyear deal, Comcast, the country's largest cable TV operator, also agreed to buy Disney's 39.5 percent stake in the E! Entertainment Television channel for $1.23 billion. Comcast currently holds a 60 percent interest in the channel.

No other financial terms of the deal were disclosed.

The pact also 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.

Comcast will launch a Spanish-language sports network dubbed ESPN Deportes, the companies said.

Disney has agreed to allow Comcast to distribute episodes of "Desperate Housewives," "Lost" and two unspecified new fall programs through the on-demand service for free within 12 hours of airing beginning in the fall of 2007. The cable giant will also add "World News with Charles Gibson," "Nightline" and "This Week" to its on-demand roster.

The ABC programming will be available through the on-demand service only to Comcast digital cable customers in seven markets served by ABC-owned TV stations: New York, Philadelphia, Chicago, San Francisco, Houston, Fresno and Flint, Mich.

Content from ESPN, the Disney Channel, Toon Disney and SOAPnet will also be available through the vide-on-demand service in markets where those cable channels are offered.

The deal also gives Comcast access to Disney, Miramax and Touchstone movies, with new releases available to customers for $3.99 and older ones for $2.99. Titles will include "Pirates of the Caribbean: Dead Man's Chest" and "The Prestige," among others.

MORE FROM U.S. BUSINESS

U.S. business Section Front

Geithner: Stimulus is on the right path States scramble for slice of Boeing's business AIG seeks clearance for more bonuses Lawmakers argue over billions left in TARP Madoff won't appeal 150-year sentence SEC to call for Calif. IOUs treated as securities Latest Buffett lunch auctions for $1.7 million Ron Paul’s bipartisan attack on the Fed Banks draw line over accepting Calif. IOUs Ad pushes legal pot as solution to Calif. deficit U.S. business Section Front   Add U.S. business headlines to your news reader: