Disney is planning to provide content to televisions embedded with Yahoo's Internet TV software.
Citing sources familiar with the situation, The Wall Street Journal reports that Disney is currently in talks with Yahoo to offer special widgets for ESPN, ABC and Disney on the new Internet TV software.
The widgets will be available exclusively on the Yahoo platform and consumers will be able to access them free of charge.
Currently Disney and other media companies continue to snub Google's own Internet TV service, fearing that it would cannibalise their existing revenue streams, but the sources suggest Yahoo has avoided such pitfalls.
Pocket-Lint reports Yahoo's Ron Jacoby as saying: "We're working with our network partners on a business model that works for networks and advertisers, not a model that deteriorates existing revenue streams."
"We think that's a big differentiator," he added.
Reuters reports that rival News Corp is in talks with a number web connected TV makers, like Samsung, to license TV shows and movies from its 20th Century Fox library and make them available across connected TVs and tablet devices.