UPDATE 2-DirecTV, Nexstar reach deal to end two-month blackout

(Adds details on blackout in paragraph 3, background on Disney-Charter deal in paragraph 4)

Sept 18 (Reuters) -

AT&T-controlled distributor DirecTV said on Monday it had reached a multi-year deal with Nexstar Media Group that would return the local broadcaster's content to its network after a more than two-month blackout.

The financial terms of the deal were not disclosed.

The

blackout

began on July 2 after the companies clashed on Nexstar's demand that DirecTV more than double the fees paid for content from its network partners, including ABC, CBS and NBC.

A similar spat between

Walt Disney

Co and Charter Communications that led to several channels including ESPN going dark on Charter's cable service was resolved earlier this month.

Media companies are still heavily reliant on cable TV as they struggle to cash in on the rising popularity of streaming services, given the huge budgets required to churn out a steady stream of content to keep viewers engaged and fend off competition in a crowded market.

The deal with DirecTV, in which AT&T has a 70% stake, brings back 176 Nexstar-owned television stations and its national cable news network, NewsNation, back to DirecTV customers.

On Sunday, the companies agreed to

temporarily

restore programming from Nexstar, the largest local TV station owner in the United States. (Reporting by Chavi Mehta in Bengaluru; Editing by Anil D'Silva)