WALT Disney Co. is in talks with pay-TV provider DirecTV to renew a contract that could result in channels like ABC and ESPN being blacked out as early as September 1 if an agreement between them is not reached, Bloomberg News reported on Monday.

Satellite television provider DirecTV is looking to ease contract terms that have traditionally required cable and satellite-TV distributors to charge customers for channels like ESPN, regardless of whether they watch it, Bloomberg News reported, citing people familiar with the discussions.

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