The Walt Disney Company's (DIS) ESPN is part of the company's Media Networks segment. As we learned in the previous part of this series, a significant component of this segment's revenues is made up of affiliate fees and advertising revenues. However, affiliate fees are under increasing pressure due to pay-TV operators' loss of subscribers. Subscriber losses are a cause for worry for ESPN because according to the contractual agreements with its distributors like Dish Network (DISH), affiliate fees get amended if the number of subscribers drops below a particular level. Disney's ESPN earns a large part of its advertising revenues through sports programming, especially live sports. Disney stated in its fiscal 3Q15 earnings call that 96% of all sports programming is watched live. ESPN holds the broadcasting rights for almost all main US sporting events, including NFL (National Football League) games.