DirecTV-Disney merger ends with new deal

DirecTV agreed to pay “market-based rates” to carry the channels, the companies said in a joint statement on Saturday. The satellite TV provider won the right to offer weaker packages of channels for fans of sports, entertainment and children’s programs. DirecTV will also be able to offer a new online version of ESPN to its subscribers at no additional cost after it launches next year.

In an interview after the deal was announced, DirecTV Chief Executive Bill Morrow said the company would still need to reach deals with other programmers so it could offer smaller channel packages. The launch of those products won’t happen until next year, he said. He declined to comment on possible prices, but said sports fans, for example, could buy only those channels and not pay for those they didn’t watch.

“We’re giving the consumer a different kind of choice than they’ve had in the past,” he said. “We know they want to be a little more selective.”

The Disney-owned networks went dark on Sept. 1 for about 11 million DirecTV subscribers when the two companies failed to agree on a new distribution deal.

DirecTV has positioned the fight as one over the future of TV viewing. The satellite operator wanted relief from contractual terms that require it to pay for a large portion of subscribers whether they watch programming or not, and the ability to offer smaller, cheaper channel packages.

The company, which is owned by AT&T Inc. and TPG, offered $20 refunds to subscribers due to channel loss.