In a report titled “Even the Force Cannot Protect ESPN,” he argues that Disney’s successful film business, which includes Pixar, has distracted investors from an impending slowdown at ESPN as viewers cancel their cable subscriptions (the “cord cutters”) or never sign up for cable to begin with (the “cord nevers”).
“Investors must remember that at its core, Disney is a cable network company that has the highest level of fixed costs (sports rights) in the industry,” he wrote. “ESPN now appears poised to become Disney’s most troubled business as consumer behavior shifts rapidly.”
http://www.nytimes.com/2015/12/22/busin ... dling.html