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Time Warner Inc.

Cord-cutting clouds Disney outlook despite 3Q earnings beat

Cord-cutting loomed over Disney's quarterly earnings, as a loss of ESPN subscribers caused Disney to taper its TV profit outlook. Despite beating profit expectations in the April-June quarter, shares fell 6 percent to $113.99 after the earnings were announced. The company said a "modest" decrease in ESPN subscribers would trim a few percentage points off a forecast for profit growth from domestic subscriber fees from 2013 to 2016. Fewer households have been getting traditional pay TV packages, and some are getting smaller channel packages, the company said. CEO Bob Iger said Disney isn't expecting dramatic declines in ESPN over the next five years or so. But on a...