Michael Morris, Guggenheim entertainment and media analyst, said on "Power Lunch," that distribution partners are finding digital ways to get to consumers, while viewers are tuning into other ESPN competitors like Fox Sports, CBS Sports and NBC Sports. Meanwhile, Disney is still reliant on ESPN revenue, which is often is the most expensive part of a cable package.
"Disney is a great company, but it's working through a couple of challenges," said Morris. "The biggest challenge is the fact that ESPN in our opinion overearned for a very long period of time."
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