May 21, 2016

Premium Sports: A Growing Concern?

   May 21, 2016

Premium Sports: A Growing Concern?

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Trader’s remarks: One of the strongest parts of Walt Disney in addition to its powerful hold on Hollywood through Lucasfilm, Pixar, and Marvel is the sports network, ESPN. Unfortunately, the number of ESPN Subscribers has taken a sharp fall in the last couple of years. As the range of sporting events that are available from other providers increases, and TV watchers are more interested in a la carte offerings rather than a cable bundle, ESPN’s power will wane further. And as its subscriber base dissolves, its affiliates will start to put pressure on the company to cut its fees, which means revenue and earnings could slide south. Sky and BT in the UK could face similar challenges.

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