A Good Day for ESPN After Disney Reaches Altice Agreement
After a long run of negative headlines, ESPN drew cheers from Wall Street on Monday with a tentative contract agreement between ESPN’s corporate owner, the Walt Disney Company,
and Altice USA, which provides cable service to roughly three million homes in the New York City suburbs.
Benjamin Swinburne, an analyst at Morgan Stanley, said the renewal “shows that, despite the rapid
and even accelerating pace of change in the TV business, there continues to be pricing power for certain network groups.”
Disney shares increased $1.29 on Monday, to $99.86.
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and the soon-to-be-introduced ACC Network, built around the Atlantic Coast Conference
He saw the deal as a step toward changing “the highly negative narrative
that has enveloped” ESPN for much of the last two years, as the sports television giant has endured subscriber losses known as cord cutting.
Once the multiyear contract is made final, Altice will pay more to carry ESPN
and other Disney-owned networks, including ABC, despite declines in their ratings.