Disney and Time Warner close to settlement over program fees

The two media giants had clashed over Disney's plans to increase its fees for the cable company's di

The Walt Disney Company and Time Warner Cable (TWC) are close to striking a deal over a new distribution contract for Disney-owned television channels, say reports citing sources familiar with the talks.

The two companies have been negotiating the matter for a long time.

TWC is opposed to Disney's plans to increase its fees for the cable company's distributing ABC, Disney and ESPN networks.

However, a joint statement released late Saturday read that the two companies have made significant progress in reaching an understanding over programming fees that TWC will pay Disney for delivering its channels to US homes.

The announcement comes ahead of TWC's renewal of its contract with Disney, which is to expire this Thursday.

According to the Wall Street Journal, both the companies have agreed to retract their marketing campaigns - using print, television and radio ads, and websites - which have aimed to persuade public opinion in their favour.

Both the TWC's rolloverorgettough.com and Disney's ihavechoices.com websites have been updated to include the joint statement announcing "significant progress".