If you are interested in this topic, you should dig in on what cutting the cord means for ESPN and a lot of the companies that were dependent on carriage fees. It is transforming every aspect of entertainment, including sports. ESPN got massive carriage fees from ever cable subscriber whether they watched ESPN or not, which gave it enormous power in the market and let it essentially pick winners. The DTC model is completely different, and ESPN has no competitive advantage in that model because cable channel real estate won't matter.
This is one of the more interesting, real-time industry transformations we may see in our lifetime. Massive media companies are scrambling to adjust to a revenue model that is completely different than the one they have built their businesses around. There are going to be some huge winners, like Netflix, which is practically printing money, and others are going to faceplant trying to make the transition. Disney/Hulu/ESPN is near the top of the "at risk" companies on that list.
There is a thread on streaming on the Realignment Board.
Right. ESPN has a business model built for cable. That’s their problem. They have ESPN, 2, U and News and get paid handsomely by cable to carry all of them.
Streaming platforms want nothing to do with the latter (and even ESPN / 2 daytime programming) so they are probably getting way less from the streaming services while also having to still invest in content for those dead channels to satisfy cable.
Then they doubled down by making poor business decisions on the streaming front. Despite being the first sports DTC streaming option with ESPN+, they have been lapped by other services in content quality.
They get 1 International NFL game per year, and weren’t strong enough to negotiate for all 5. Then they picked the NHL, which probably has more Canadian viewers than US viewers as their “hook” sport, while Apple TV gobbled up the MLS (which will pass NHL in viewership by end of decade), Amazon got TNF, YouTube got Sunday Ticket and Peacock got the Premiere League.
Bad business model with a poor product.
Just because Boston Market filed bankruptcy, it’s not accurate to say Americans don’t like fried chicken. It means Americans don’t like their fried chicken.
That’s basically the conclusion you’re trying to reach with ESPN and the value of sports by saying “only another 2 or 3 years…” because of cutting the cord.
Sports are in their golden age and probably have another few decades of getting a premium for their content from providers built for the future. ESPN dug their own grave if they won’t be around for it...