The stock of Walt Disney Co (NYSE:DIS) closed at $98.64 gaining 0.35% in the last trading session. This company and cable operator Altice USA (ATUS.N) have made an announcement about the finalizing of their new multiyear programming agreement which keeps ESPN and other networks in New York-area households.
It was on Sunday that the two sides arrived at a preliminary deal and earlier on there had been a series of contentious negotiations in progress. Disney through a statement outlined that it was considering pulling out its networks from Altice’s Optimum cable service. On the other hand, Altice forwarded an argument outlining that Disney had been seeking out unreasonable increases in fees for the rights to carry the channels.
It was on Thursday that the company revealed that Optimum would proceed to carry the Disney Channel, WABC, Disney Junior, Freeform, and a number of ESPN channels. If everything moves according to plan, by 2018 Optimum will have succeeded at adding ESPN’s SEC Network. A statement by the provider indicated that by August 2019 it will drop one of the other ESPN channels and at the same time carry the ACC Network.
The interested parties tried to push the company to move ahead and unveil the financial terms. Matters did not turn out as expected since they declined to disclose the associated terms.
However, sources familiar with the matter on Sunday went ahead to state that Disney had secured fee increases for WABC, ESPN and other major networks. These sources gave the information on the condition of anonymity. Optimum has over 3.1 million customers in New York, New Jersey, Pennsylvania and Connecticut.
Disney’s spokesperson said that it was not an easy task maintaining their position in the market. They had to constantly change the way they moved about their daily operations to get to where they are currently.
He opined, “As a company we are determined to channel more resources into sharpening our competitive edge in the market.”