Disney, Verizon in Fiber Deal

Verizon (VZ Quote - Cramer on VZ - Stock Picks) and Disney (DIS Quote - Cramer on DIS - Stock Picks) rolled out a far-reaching content and programming agreement.

Verizon will carry 12 Disney-owned channels on its expanded basic fiber service, called FiOS. The channels include 7 ESPN channels, ABC Family and ABC News Now, among others. As part of the deal Verizon will also be granted retransmission consent for ABC's owned and operated television stations.

Verizon, which has plans to compete against cable and satellite operators in some U.S. markets, will deploy the service as soon as next week in some smaller markets in Texas and California.

The agreement with Disney calls for Verizon to carry major Disney and ESPN programming along with broadband services. Speaking at a Goldman Sachs media conference, Disney CEO-elect Robert Iger didn't say whether the company is getting paid for carriage. He stressed that being part of the latest delivery platform is a positive for the company.

The deal also has piracy implications. Verizon and Disney pledged to "help curb infringement of Disney's copyrighted works over the Internet while at the same time appropriately safeguarding the privacy of Verizon Internet service subscribers."

Separately, News Corp.(NWS Quote - Cramer on NWS - Stock Picks) Chairman Rupert Murdoch, speaking at the same Goldman conference, said his company was very close to a similar deal with Verizon that is expected to include its Fox channels.

Disney shares were trading down 36 cents to $23.39 on Wednesday afternoon.