They're working with ESPN President Jimmy Pitaro on the strategic options for ESPN and, to a lesser degree, Disney's other linear cable networks.
In years past, ESPN could still generate revenue growth by increasing programming fees for pay TV distributors, such as Comcast , Charter and DirecTV.
As ESPN revenue declines, it will become a larger anchor on Disney's earnings.
Disney offers many of its lower-rated live games on its ESPN+ streaming service, which costs $9.99 per month.
When ESPN does decide to offer an unbundled subscription service, it will likely cause even more people to cancel pay TV.
Persons:
Bob Iger, Kevin Mayer, Tom Staggs, Staggs, Jimmy Pitaro, Iger, CNBC's David Faber
Organizations:
Disney, ESPN, Mayer, Candle Media, Comcast, Charter, DirecTV