DirecTV seeks to revamp paid TV rules in talks with Disney, Bloomberg News reports By Reuters

(Reuters) – Walt Disney (NYSE:) Co. is in talks with pay-TV provider DirecTV to extend a contract. If the two sides fail to reach an agreement, channels like ABC and ESPN could go dark starting Sept. 1, Bloomberg News reported Monday.

Satellite television provider DirecTV is looking to loosen contract terms. Traditionally, cable and satellite providers have had to charge customers for channels like ESPN regardless of whether they watched them, Bloomberg News reported, citing people familiar with the discussions.

Instead, the report says, DirecTV is offering smaller channel packages based on specific genres, such as children’s programming, movies, news, local channels, sports or Spanish-language content.

According to the report, Disney is open to the idea of ​​offering other distributors some sports-specific packages, is willing to offer other types of smaller packages, and negotiate lower minimum subscriber guarantees.

Disney and DirecTV did not immediately respond to Reuters’ requests for comment.