Aug 26 (Reuters) - Walt Disney Co ( DIS ) is in talks

with pay-TV provider DirecTV to renew a contract that could

result in channels like ABC and ESPN ( DIS ) being blacked out as early

as Sept. 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 ( DIS ), 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 ( DIS ) 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 ( DIS ) and DirecTV did not immediately respond to Reuters'

requests for comment.