Verizon, Disney Reach Distribution Deal to Avoid Blackout

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FiOS customers were at risk of losing ESPN, the Disney Channel, ABC stations in New York and Philadelphia, Freeform and more stations owned by Disney if a deal was not reached.

Disney and Verizon have reached a distribution agreement for the phone company's FiOS Video just a day before channels from Disney would go dark on New Year's Eve.

"Verizon and The Walt Disney Company have reached a broad-based distribution agreement. Details will be released in the coming days," the companies announced Sunday.

Verizon customers were at risk of losing ESPN, the Disney Channel, ABC stations in New York and Philadelphia, Freeform and more stations owned by Disney if a deal was not reached.

FiOS has nearly 4.5 million TV subscribers after losing about 63,000 in the most recently reported quarter as linear TV faces competitive threats from streamers like Amazon, Hulu and Netflix.