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 Media reports said the Nielsen data, which showed a decline
in subscriptions for most cable networks, suggested ESPN lost
621,000 subscribers from a month earlier. Neither Nielsen nor
ESPN released the numbers publicly, but ESPN questioned the
accuracy of the findings.
In a statement on its website, Nielsen said an "extensive
review" undertaken after ESPN objected showed that estimates of
cable subscribers provided on Oct. 28 were accurate.
Disney shares fell nearly 1 percent on Friday to close at $92.45
on the New York Stock Exchange.
"This most recent snapshot from Nielsen is a historic anomaly
for the industry and inconsistent with much more moderated
trends observed by other respected third-party analysts," ESPN
said in a statement.
The figures do not include people who subscribe through digital
TV services and other new distributors, the sports network said.
Nielsen, in its statement, said the company is researching newer
providers to add those subscribers in future reports.
The future of ESPN has been a concern on Wall Street since
August 2015 when Disney Chief Executive Officer Bob Iger
acknowledged "modest" subscriber losses at the sports network.
Disney and other media companies are facing challenges from
"cord cutters" who are dropping traditional TV subscriptions for
cheaper online options.
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Nielsen said its data showed most cable networks experienced a
month-to-month subscriber decline. The drop was driven primarily by
a 0.55 percent decrease in the number of households paying for TV
packages through cable, satellite or telephone providers.
Analyst Brian Wieser of Pivotal Research Group, which pays for
access to Nielsen data, confirmed that Nielsen's latest report
indicated a drop of roughly 621,000 ESPN subscribers. But he said it
was not unusual as ESPN has seen previous monthly drops of around
500,000 or 600,000 customers.
Wieser estimated that year-over-year declines stood at 3.1 percent,
in line with the 2 percent to 4 percent drops seen since the start
of 2014.
"This has occurred as the network began to trade off high subscriber
fees for greater flexibility" for pay TV providers, Wieser said in a
research note. "We continue to believe that ESPN is experiencing
low-single-digit subscriber declines."
(Reporting by Lisa Richwine; Editing by Andrew Hay and Leslie Adler)
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