Could ESPN Go Over the Top?

[Seaa Blue]

http://www.msn.com/en-us/money/companies/could-espn-go-over-the-top/ar-BBonJny?ocid=spartandhp

BTIG Research analyst Rich Greenfield, found 56% of respondents would cancel ESPN and ESPN2 to save $8 every month.

Time to hoard content (re: Big Ten)?

As this trend continues, ESPN may find its revenue declining, with ad sales unable to offset the decline in carriage fee revenue. At $6.61 per subscriber per month, ESPN may be reaching the upper limits of where its carriage fees max out with pay-TV operators, adding more pressure to subscriber losses.

With big sports rights set to kick in over the coming years, the network's content costs will balloon to nearly $6 billion over the next few years, putting even more pressure on operating income. That may be the impetus for the network to test the waters with an over-the-top service.

If Moonves is right, it's not a matter of whether ESPN could go over the top, but when it will. On the other hand, if Disney can keep the cable bundle together, it would foolish for it to take its networks directly to consumers. With the trends we've seen over the past couple of years, Moonves is looking awfully smart.

 

[Carl Spackler]

Should such a thing happen, intercollegiate athletics programs that command market share in broadcasting are going to be valueable commodities. A small slice of the NYC demographic is larger than most cities, and that doesn't even count Hartford-New Haven.

 

[brasssbonanzaa]

It's only a matter of time before cable TV becomes a la carte, there's too many cordcutters.

 

[1999.2004.2011]

It's only a matter of time before cable TV becomes a la carte, there's too many cordcutters.

If it weren't for live sports, I would have zero reason for continuing my cable service.

 

[brasssbonanzaa]

If it weren't for live sports, I would have zero reason for continuing my cable service.

And subscribers like you are the reason it'll go a la carte - be able to pick and choose which channels you want without having to pay $30-50 a month for WhoGivesAShit Network 3 every month. It also will likely lead to a lot of the lesser cable channels shutting down once people stop paying for them (through bundle fees) every month while never watching them.

 

[Carl Spackler]

Hey, media is changing. Penthouse shut down its print magazine for good today. I don't know how that's related, but the Penthosue forum in hard copy is a thing that young lads will never experience in the future. Back to back sportscenters may soon follow. Sad.

 

[CTMike]

If ESPN were a la carte, they'd have to charge way more per month - probably double or more. 6.61 is subsidized by all subscribers. Without all that subsidy, $15/month or more is not out of the question. As an intermediate step, a streaming subscription to ESPN is the only way they can stop losses.

At some point though (not just yet), a forward thinking entity may say : we can cut out the ESPN middle man, charge less, and make more. THAT is what will eventually do ESPN in.

 

[Slasher]

If ESPN were a la carte, they'd have to charge way more per month - probably double or more. 6.61 is subsidized by all subscribers. Without all that subsidy, $15/month or more is not out of the question. As an intermediate step, a streaming subscription to ESPN is the only way they can stop losses.

At some point though (not just yet), a forward thinking entity may say : we can cut out the ESPN middle man, charge less, and make more. THAT is what will eventually do ESPN in.

This is a great point and one so many people miss. How much as a sports watcher would you be willing to pay for ESPN? For most people it's certainly worth at least double that, I'd say i'd even pay up to $30 a month if I wasn't paying for the crap I wasn't watching.

 

[Hoophound]

I'd pay $30 for TV Land. Can't fall asleep without it.

 

[calluke]

Not sure if most of you know, but there is a way to get ESPN without the big cable bill. It's called SLING TV. For $20 bucks a month you get ESPN, ESPN2 + like 20 other channels including TNT, TBS, AMC, A&E, Disney, HGTV, Food Net, etc. I watch it on my phone, my tablet, my computer, and with a Roku stick I watch it on my big 55" smart TV. I said goodbye to Directv years ago and this my answer to my ESPN prayers. You can even add ESPN News and ESPNU (plus others) for an extra $5/month.

 

[uconnfan68]

If ESPN were a la carte, they'd have to charge way more per month - probably double or more. 6.61 is subsidized by all subscribers. Without all that subsidy, $15/month or more is not out of the question. As an intermediate step, a streaming subscription to ESPN is the only way they can stop losses.

At some point though (not just yet), a forward thinking entity may say : we can cut out the ESPN middle man, charge less, and make more. THAT is what will eventually do ESPN in.

Well, you can't play their content without paying them... and the idea that people want to watch that content is what is keeping them in business. They have been very busy through the years of hoarding content rights. I think they got somewhat blindsided by football driving the bus. Their main claim was basketball for a long time.

 

[CallMeBruce]

Not sure if most of you know, but there is a way to get ESPN without the big cable bill. It's called SLING TV. For $20 bucks a month you get ESPN, ESPN2 + like 20 other channels including TNT, TBS, AMC, A&E, Disney, HGTV, Food Net, etc. I watch it on my phone, my tablet, my computer, and with a Roku stick I watch it on my big 55" smart TV. I said goodbye to Directv years ago and this my answer to my ESPN prayers. You can even add ESPN News and ESPNU (plus others) for an extra $5/month.

I got this last month and I love it. Just need to add Fox Sports, NBC Sports, and CSN and my life will be perfect.

 

[noeynox]

Well, you can't play their content without paying them... and the idea that people want to watch that content is what is keeping them in business. They have been very busy through the years of hoarding content rights. I think they got somewhat blindsided by football driving the bus. Their main claim was basketball for a long time.

Thing is for us guys 40 and over that is true. However, go to some young person's house and they likely have some device that streams all that content off the net with no payment. I think it is today's version of pirated new release movies. I say this all the time, but if I wasn't a sports fan, I'd drop the cable bill altogether. For my next turn I'm considering the sling TV thing. Just have to make sure I can watch my huskies, mets, pats.

 

[CL82]

How much do you have pay for internet access? I think their was a thread on the board that that added up the different fees in ended up being pretty much the same as cable.

Courtesy of @TCF, I've started watching a lot more content via Chromecast and the internet.

 

[calluke]

How much do you have pay for internet access? I think their was a thread on the board that that added up the different fees in ended up being pretty much the same as cable.

Courtesy of @TCF, I've started watching a lot more content via Chromecast and the internet.

I pay $54 to frontier which includes landline, high speed internet, and all taxes and fees.

 

[CL82]

I pay $54 to frontier which includes landline, high speed internet, and all taxes and fees.

Thanks! So if you add another $20-25 you are looking at $75-79/mo. That's close to what you can get cable for. I think I may pull the plug in May. The last time I threatened to do that they dropped me to $59/mo before taxes. It's hard to say no to that.

 

[IMind]

I pay a crap ton, but I get NHL and MLB. If I cut the cord I'd probably pay around the same crap ton. I mean I already for various reasons have Netflix, Amazon Prime, Hulu, Crunchyroll and Funimation... I have to many devices to count... I'd probably just get a couple of Roku boxes and call it a day, but my wife is really the sticky wicket in the whole cutting the cord thing... I'm not exactly sure why.

 

[junglehusky]

Survey says 56% would drop ESPN if it meant saving $8 a month

Skipper interview with WSJ

WSJ: Do you have any wiggle room with your league partners to adjust payments if things change and cord-cutting really picks up? Would you want that flexibility?

Mr. Skipper: We don’t have any contingent payment plans. We have rights agreements with defined payments. It’s probably not practical. I wouldn’t particularly entertain it if people came to me and said, “Gee, I’d like to do a deal with you, but if the economy’s worse I’d like to pay you less.”

Deadspin - ESPN's Uncertain Future Is Already Here

 

[CL82]

So assuming that ESPN gets $8/month currently, the remaining 46% would have to be willing to pay what like $17.50 to keep ESPN at the same profit? For sports viewers that's a slam dunk.

 

[NYUConn]

So assuming that ESPN gets $8/month currently, the remaining 46% would have to be willing to pay what like $17.50 to keep ESPN at the same profit? For sports viewers that's a slam dunk.

Honestly if I could get the ESPN family of networks at $17.50/Mo I would immediately sign up and dump the rest of my cable package.

I have an apple TV at the moment. The only thing keeping my cable subscription going is live sports.

 

[CallMeBruce]

Honestly if I could get the ESPN family of networks at $17.50/Mo I would immediately sign up and dump the rest of my cable package.

I have an apple TV at the moment. The only thing keeping my cable subscription going is live sports.

I pay $25/mo for Sling TV, and I only watch the ESPNs, BeIn Sport, and the SEC Network.

 

[sdhusky]

I pay $25/mo for Sling TV, and I only watch the ESPNs, BeIn Sport, and the SEC Network.

me too.

 

[J187Money]

Not sure if most of you know, but there is a way to get ESPN without the big cable bill. It's called SLING TV. For $20 bucks a month you get ESPN, ESPN2 + like 20 other channels including TNT, TBS, AMC, A&E, Disney, HGTV, Food Net, etc. I watch it on my phone, my tablet, my computer, and with a Roku stick I watch it on my big 55" smart TV. I said goodbye to Directv years ago and this my answer to my ESPN prayers. You can even add ESPN News and ESPNU (plus others) for an extra $5/month.

Do you have a wife and kids?

I'd do it much differently if it was just me...

 

[calluke]

Yes. Married with 3 kids under ten. I get all my locals over hd antenna. And sling for espn.

 

[J187Money]

Yes. Married with 3 kids under ten. I get all my locals over hd antenna. And sling for espn.

If I wasn't so hooked into the DirecTV football package I might dump DTV. But every year I get closer to it - more and more time spent on Netflix/Hulu...