Comcast, Disney ink on-demand content deal

"This is one of the broadest distribution agreements in the history of our company," Disney President and CEO Robert Iger said in a prepared statement.

Added Comcast Chairman and CEO Brian Roberts: "This agreement reflects our ability to distribute content on multiple platforms and signals another first for Comcast and Disney as we continue to explore the evolving possibilities of digital technology."

The two companies have been linked for a long time. In 2004, Comcast proposed buying Disney for about $54 billion in stock, but Comcast withdrew its bid after twice being rebuffed by Disney.

Cable companies have said they want to offer TV shows on demand for 99 cents per episode and show movies on demand the same day they become available on DVD, instead of weeks later.

Disney has been renegotiating its cable deals in recent years, favoring longer terms that provide a steady stream of income.

Earlier this year, Comcast, CBS Corp. and General Motors Corp. tested the concept of showing prime time TV shows on-demand for free for digital cable subscribers in Philadelphia, Baltimore, Chicago and Detroit.

CBS already offers prime time shows such as "Amazing Race," and "CSI: Crime Scene Investigation" through Comcast's video-on-demand network for 99 cents each.

Shares of Walt Disney climbed 11 cents on the New York Stock Exchange to close Tuesday at $33.23, near the upper-end of its 52-week trading range of $23.77-$33.85. Shares of Comcast declined by 11 cents on the Nasdaq Stock Market to $40.68, near the upper-end of its 52-week trading range of $25.35-$41.20.

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