Sept 1 (Reuters) - Walt Disney ( DIS ) and satellite TV

provider DirecTV failed to reach a new distribution deal for

ESPN ( DIS ), ABC and other Disney ( DIS )-owned networks, the companies said on

Sunday, resulting in more than 11 million DirecTV subscribers

losing access to those networks.

The programming blackout at the expiry of the prior deal on

Sunday took effect days before the National Football League

kicks off its season on Thursday, and ahead of ABC News'

scheduled presidential debate on Sept. 10.

Disney ( DIS ) and DirecTV entered the Labor Day holiday weekend far

apart in their negotiations, people with knowledge of the talks

said.

DirecTV sought changes in its offerings to cater to consumer

tastes in the streaming TV era as part of a new multi-billion

dollar licensing agreement. It pressed Disney ( DIS ) to allow it to

sell smaller, lower-priced packages, including tiers without

ESPN ( DIS ) for customers who do not watch sports.

"(Disney ( DIS )) want to continue to chase maximum profits and

dominant control at the expense of consumers - making it harder

for them to select the shows and sports they want at a

reasonable price," said Rob Thun, chief content officer at

DirecTV, in a statement on Sunday.

Disney ( DIS ) balked at DirecTV's request for discounts and lower

distribution thresholds, one person familiar with the

negotiations said. Agreements typically contain minimum

penetration requirements that specify the portion of subscribers

to whom a distributor is required to make a network available.

"While we're open to offering DirecTV flexibility and terms

which we've extended to other distributors, we will not enter

into an agreement that undervalues our portfolio of television

channels and programs," said Dana Walden and Alan Bergman,

co-chairmen, Disney Entertainment, and Jimmy Pitaro, chairman,

ESPN ( DIS ), in a statement on Sunday.