Walt Disney Co. (NYSE: DIS) and Altice USA Inc. (NYSE: ATUS) reached a tentative programing agreement that allow pay-TV subscribers to continue to get Disney’s ESPN and other networks in the New York-area.
“We have reached an agreement in principle and have extended the deadline accordingly to try and finalize the terms,” a joint statement from the companies said.
Shares of Disney and Altice were traded higher on Monday after the news. Disney shares rose 1.53 percent to $100.07 in the early trading in New York. While Altice share gained 2.23 percent to $27.91.
Alice is the fourth-largest cable operator in the United States. It owns Optimum, which has 3.1 million customers in New Jersey, New York, Connecticut and Pennsylvania.
It is unclear how much Altice will pay for Disney’s channels as the details were not disclosed. But an increase fee for ESPN was secured by Disney, according to two people familiar with the terms who asked not to be named.
Disney own ESPN, ABC and other Disney channels. According to S&P Global Inc.’s SNL Kagan, ESPN is the most expensive pay-TV network, charging about $7.54 per month for per subscriber. But ESPN has been losing subscribers in the recent years as the traditional TV channels face competition from cheaper video streaming.