ESPN & NFL in advanced talks

[HitDog]

The NFL is looking to buy a stake in ESPN. Disney would take control of NFL media. Also mentioned is ESPN is looking to go direct to consumer in ‘25.

ESPN, NFL in advanced talks on agreement that could give league stake in TV giant

If an agreement goes through, NFL Media, which includes NFL Network, would fall under the Disney umbrella.

nypost.com

 

[pepband99]

Probably the first shot of many. Broadcasters won't be able to re-up at current rates, and every league has a broadcasting arm now. It makes sense.

 

[JohnFSilver]

I do wonder if regulators will go after this.

 

[CL82]

I do wonder if regulators will go after this.

On what basis?

 

[Fishy]

Probably the first shot of many. Broadcasters won't be able to re-up at current rates, and every league has a broadcasting arm now. It makes sense.

What makes you think they can’t handle current rates?

 

[pepband99]

What makes you think they can’t handle current rates?

Every sports-facing broadcasting entity is taking on water.

RSNs are in the wort shape, as they're most tied to carriage fees, and also the most tied to a single entity, so advertising is a tough sell in a down year. Bankruptcies all over the place, specifically due to the current rates paid to the rights holders.

Sports channels like ESPN are in better shape, but their top-line revenue is taking a harder hit every month. Will DTC help? Sure, but there is another factor...

In a streaming-positive world, you simply don't need to fill slots. Stacking games on timeslots in multiple channels becomes much less important, and that will drive rates.

Rates have been driven up by a fairly constant number of subscribers, along with a rising carriage fee. Subs are dropping like flies, and you can't just raise fees to compensate, at least equally. Something will give here.

 

[CL82]

Every sports-facing broadcasting entity is taking on water.

RSNs are in the wort shape, as they're most tied to carriage fees, and also the most tied to a single entity, so advertising is a tough sell in a down year. Bankruptcies all over the place, specifically due to the current rates paid to the rights holders.

Sports channels like ESPN are in better shape, but their top-line revenue is taking a harder hit every month. Will DTC help? Sure, but there is another factor...

In a streaming-positive world, you simply don't need to fill slots. Stacking games on timeslots in multiple channels becomes much less important, and that will drive rates.

Rates have been driven up by a fairly constant number of subscribers, along with a rising carriage fee. Subs are dropping like flies, and you can't just raise fees to compensate, at least equally. Something will give here.

Consolidation appears to be the most logical response to these facts.