Disney, Altice reach deal that avoids ESPN blackout

Disney and Altice have been negotiating how much the cable operator would pay to carry ESPN, ABC, the Disney Channel and other networks. Both sides are under pressure from cord cutting, or dropping of pay TV service, as audiences flock to cheaper streaming services. (The main gate of entertainment giant Walt Disney Co. is pictured in Burbank, California . - Reuters filepic

LOS ANGELES: Walt Disney Co and cable operator Altice USA reached a tentative programming deal that keeps ESPN and other channels on the Optimum cable service as the two sides finalize details, the companies said in a statement on Sunday.

"We have reached an agreement in principle and have extended the deadline accordingly to try and finalize the terms," the statement said.

The deal averts a blackout that could have deprived New York-area Optimum subscribers of seeing Tuesday's baseball playoff game between the Minnesota Twins and New York Yankees as well as "Monday Night Football" and other programming.

Disney and Altice have been negotiating how much the cable operator would pay to carry ESPN, ABC, the Disney Channel and other networks. Both sides are under pressure from cord cutting, or dropping of pay TV service, as audiences flock to cheaper streaming services.

Altice argued that Disney had asked for "outrageous" increases in payments to continue its networks. Disney countered that Altice charges the average customer $160 or more per month and "the bulk of that money goes into their pocket." - Reuetrs