Disney Warns AT&T Customers They May Lose ESPN in Contract Dispute

  • Disney: Pact expires soon; fully committed to reaching a deal
  • AT&T under pressure from activist investor as DirecTV declines

Photographer: Brett Carlsen/Getty Images 

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The biggest U.S. media company and the biggest U.S. pay-TV distributor are in a fight, and neither side can afford to lose.

Walt Disney Co. has started warning AT&T Inc.’s U-verse and DirecTV customers that they may lose ABC, ESPN, the Disney Channel and Freeform if the companies can’t agree on new financial terms when their current contract expires soon.