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.

DirecTV is instead proposing smaller channel packages based on specific genres, such as kids' programming, movies, news, local stations, sports or Spanish content, according to the report.

Disney is open to the idea of offering some sports-specific packages to other distributors, the report said, adding it is also willing to offer other types of smaller packages and negotiate some lower minimum subscriber guarantees.

Disney and DirecTV did not immediately respond to Reuters' requests for comment.

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