Disney (DIS - Free Report) and Verizon Communications (VZ - Free Report) recently extended their multi-year distribution agreement to carry the media giant’s channels on Verizon's Fios network.
The agreement, which was renewed on the day of its deadline, ensured continued channel access to Verizon’s approximately 4.6 million customers.
Disney’s ability to continue partnering with pay-TV operators, at the time when media companies are facing cord cutting and decline in subscriber base, demonstrates strength of its content portfolio. Reportedly, the media behemoth also won price hike for its programming.
In regard to this, we note that Disney’s ESPN is long known for fetching high price to the company even though very few users consume its content. However, ESPN subscriber base is witnessing positive trend, primarily due to new deals inked by the company. Notably, ESPN was voted the top cable network among men and number two among all viewers this year, per Nielsen’s rankings.
Moreover, Disney’s content slate is expected to get further boost after acquiring Twenty-First Century Fox (FOXA - Free Report) assets in 2019. The Fox deal is likely to help Disney improve its television business performance, subscriber base and direct-to-consumer streaming portfolio in the Unites States and worldwide.
The Walt Disney Company Revenue (TTM)