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Disney Actively Selling Internet Streaming Channel and Program Rights

DirecTV is in talks with Walt Disney Co to license the rights to offer Disney’s broadcast and cable channels as part of an Internet-based product, DirecTV said on Wednesday.

The deal would mirror a first-of-its kind agreement that Disney and satellite rival Dish Network Corp announced earlier this week.

The agreement between Dish and Disney marked the first time that a U.S. pay TV operator has been given the flexibility to offer its content over the Web through smartphones, tablets and computers outside of a pay TV subscription.

In that agreement, Disney allows for Dish to stream linear and on-demand content from ABC broadcast stations as well as cable channels, ABC Family, Disney Channel, ESPN and ESPN2. Dish has not revealed plans for its streaming service. – Reuters

For the first time a major content provider is offering the ability for a pay TV operator to sell their channels through video streaming and on-demand over the internet. It remains to be seen whether this may lead to smaller bundles, which would drive more cord-cutting. This could be is a big step away from the traditional cable TV model.

If DISH and DirectTV push an internet offering hard, it may force Comcast, Verzion, and AT&T to add more stringent bandwidth caps to their internet data subscribers as they lose more TV video subscribers.

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