The Walt Disney Company (DIS) may be thriving in the majority of its businesses, but there is one segment that has been plaguing the House of Mouse and weighing on its stock price for the past two years, ESPN.
Concerns about subscriber loss at ESPN have been dogging Disney, even as the company's movies top the box office, and it makes investments in its theme parks.
Disney is set to start contract talks with cable operator Altice USA (ATUS) , which expires this fall, the Wall Street Journal reports. The deal would be the first in a series of new contracts that Disney will negotiate with pay-TV providers in order to offset its ESPN subscriber decline.
The issue for Disney and ESPN is that more consumers are leaving traditional pay-TV models for skinny bundles or simply cutting the cord all together. Disney can offset the decline spurred by this trend by hiking its annual price increases and using provisions in its contracts that stipulate which TV packages ESPN must appear on and what part of pay-TV subscribers must receive it, the Journal noted.
What's Hot On TheStreet
In a July 6 trademark application, Amazon subsidiary Amazon Technologies Inc. revealed it's planning "prepared food kits composed of meat, poultry, fish, seafood, fruit and/or and [sic] vegetables...ready for cooking and assembly as a meal," as well as primarily grain-based offerings.