By Melodie Warner
Walt Disney Co. (DIS) renewed a distribution agreement with
cable operator Charter Communications Inc. (CHTR) that expands its
programming to multiple platforms.
Financial terms weren't disclosed.
As part of the new multiyear deal, the Longhorn Network will
launch in Texas, Louisiana and Virginia systems by football season
next year.
Charter and Disney will also introduce several new services,
including the upcoming ABC News/Univision joint venture, a news,
information and lifestyle network for English-dominant and
bilingual Hispanics in the U.S.
The launch of content across these new distribution platforms is
planned for the first half of 2013.
"More and more content is being enjoyed on tablets and other
Internet-connected devices," said Allan Singer, Charter's senior
vice president of programming. "Our agreement with Disney enables
more robust ways to enjoy and socialize TV."
Disney has reported double-digit earnings growth on a percentage
basis for more than a year, largely due to strength in its cable
channels and in its theme-parks business. Its networks division has
benefited in particular as sports programming on ESPN commands
higher affiliate fees.
Disney reported last month its fiscal fourth-quarter income
improved 14% as the company posted continued growth from its theme
parks and media networks.
Meanwhile, Charter's third-quarter loss widened as higher
operating expenses masked improved revenue. Cable operators such as
Charter have increased their focus on their Internet services for
growth at a time of rising defections of their television customers
and as consumers remain cautious in a sluggish economy.
Write to Melodie Warner at melodie.warner@dowjones.com
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