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Starz, AT&T avert network outage with new distribution pact

Premium pay-TV service Starz and AT&T hammered out a new distribution pact hours before a deadline, ensuring that millions of AT&T customers would be able to watch such popular Starz programming as the drama "Power."

Talks had dragged on for several months before stalling a week ago. With the deadline looming, the two companies returned to the negotiation table and forged an agreement late Friday shortly before their contract was due to expire.

"AT&T and Starz have reached an agreement to continue our longstanding relationship," an AT&T representative said Saturday afternoon.

The companies declined to provide financial terms of their new deal.