ESPN Woes (losing 15,000 subscribers a day) | The Boneyard

ESPN Woes (losing 15,000 subscribers a day)

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Good!!!
 
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UCFBfan

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There’s nothing good about any of this. I know we all hate ESPN for the situation we’re in because the conspiracy theory is that they blocked us or didn’t help us.

In reality, the downfall of ESPN will continue to devestate this state. Another major employer either leaving the state or, in this case, shedding jobs like crazy. This is bad news for the state. There’s nothing to be happy at here...
 

shizzle787

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Reading the article though...he's not really wrong. ESPN is the Blockbuster of sports. They don't create anything. They're screwed.
 
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Everyone gets a woody over this stuff until 3 years from now the internet costs $200 a month and the streaming quality is a fraction of todays cable TV.

Awesome.

Over the air TV picture quality is very good these days, for some channels slightly better than cable. And, the selection over the air is unbelievable. In Boston, there are over 50 channels available (some duplicates) over the air including ABC, FOX, CBS, NBC, PBS, CW, HSN, Univision, Ion, LAFF, MOVIES!, thisTV, GRIT,... With digital channels, each over the air station can broadcast multiple channels. PBS in Boston broadcasts 4 stations on Channel 2 all with different content. All free. You are only missing sports, news like CNN/Fox News/MSNBC, and premium channels like HBO as well as some niche channels.

On my computers and TV, streaming works almost as good as cable, but the quality depends on the streamer. For example, ESPN is a better streamer than FOX sports, and Netflix is a better streamer than both ESPN and FOX although it is easier to stream archived content than live sports. I think streaming will improve over time as more companies invest in the service and internet providers upgrade their speeds. Probably the main reason people on this board have different perceptions of streaming is the quality of their internet service.

As for the cost of internet access, there is competition, although not everyone lives in a competitive environment. In my neighborhood, there are 2 internet competitors, Xfinity and RCN and they do compete on price and offerings. (I'm not counting Verizon DSL, but they may come in with FiOS in the future.) A couple of times per year, Xfinity and/or RCN knock on our door trying to get us to switch providers by offering us a great deal. RCN can be $5 to $10 per month cheaper than Xfinity, not including the unadvertised offers they make in person when they can add services. Plus, people can use wireless internet access, so I'm not buying that internet costs are going to go up a lot.
 
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I’ve been wondering for years how many of these TV channels will stay alive with streaming/alla cart TV packages. We’ve been forced to pay for these crappy channels for years, that’s coming to an end. Big change is coming!!
 

CL82

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Everyone gets a woody over this stuff until 3 years from now the internet costs $200 a month and the streaming quality is a fraction of todays cable TV.

Wait are you saying that this will hurt the quality of streaming or that streaming today isn't as good as cable?

ESPN's streaming is pretty good now. Maybe slightly less quality but not much. Agree that many other outlets are worse.
 

CL82

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This isn't the downfall of ESPN. It is the downfall of the cable model. ESPN will be alive and well long after many others have faded away. I am not a fan, but the glee these stories generate crack me up.
Any change to the status quo ante is a reason to hope for UConn.
 

whaler11

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Wait are you saying that this will hurt the quality of streaming or that streaming today isn't as good as cable?

ESPN's streaming is pretty good now. Maybe slightly less quality but not much. Agree that many other outlets are worse.

Their streaming is decent. Still plenty of issues. Most are way worse.

Streaming sports generally sucks. You have to insulate yourself in a cocoon of silence because you end up so far behind the live action.
 
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This isn't the downfall of ESPN. It is the downfall of the cable model. ESPN will be alive and well long after many others have faded away. I am not a fan, but the glee these stories generate crack me up.

The problem that ESPN has is that too many people pay for ESPN that don't watch it and ESPN is paying for content based on their total revenues, not total actual viewers. The WSJ did an analysis of the revenues per actual watchers of a cable channel and the numbers weren't favorable for ESPN. Here are some numbers:

Subscription revenue/year per actual viewer:

ESPN: $3885
ESPN2: $3086
ESPNU: $2547

Golf: $4224
MLB: $2939
NFL Network: $2938
FS1: $2658

CNN: $766
FoxNews: $676
TV Land: $363
History: $320

Bundling has subsidized a number of channels, especially sports channels. If we went to an ala carte model, maybe enough people would pay a hefty fee to have access to ESPN channels to keep the revenues flat or growing. I don't think that ESPN wants to find out if they would as they are fighting for their place in the bundle
 
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The problem that ESPN has is that too many people pay for ESPN that don't watch it and ESPN is paying for content based on their total revenues, not total actual viewers. The WSJ did an analysis of the revenues per actual watchers of a cable channel and the numbers weren't favorable for ESPN. Here are some numbers:

Subscription revenue/year per actual viewer:

ESPN: $3885
ESPN2: $3086
ESPNU: $2547

Golf: $4224
MLB: $2939
NFL Network: $2938
FS1: $2658

CNN: $766
FoxNews: $676
TV Land: $363
History: $320

Bundling has subsidized a number of channels, especially sports channels. If we went to an ala carte model, maybe enough people would pay a hefty fee to have access to ESPN channels to keep the revenues flat or growing. I don't think that ESPN wants to find out if they would as they are fighting for their place in the bundle

If cable goes ala carte (which I doubt happens in the immediate), ESPN will still be one of the biggest dogs in the yard. Channels like Lifetime, History 2, etc will die immediate deaths. This isn't an ESPN problem. This is simply evolution. A model that was propped up by lack of choice running head-on into a mountain of consumers who are in an "on-demand" state of mind.

In ESPN's case, they spend money on large contracts while ignoring market trends. Those contracts will eventually end and be re-upped at more sustainable rates. This nation still has a large appetite for sports. But it is consumed much differently than it was just 10 year ago. ESPiN will adjust. The other networks will continue to crank out cheap to make reality shows.
 
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If cable goes ala carte (which I doubt happens in the immediate), ESPN will still be one of the biggest dogs in the yard. Channels like Lifetime, History 2, etc will die immediate deaths. This isn't an ESPN problem. This is simply evolution. A model that was propped up by lack of choice running head-on into a mountain of consumers who are in an "on-demand" state of mind.

In ESPN's case, they spend money on large contracts while ignoring market trends. Those contracts will eventually end and be re-upped at more sustainable rates. This nation still has a large appetite for sports. But it is consumed much differently than it was just 10 year ago. ESPiN will adjust. The other networks will continue to crank out cheap to make reality shows.
Spot on. Amazes me that people are ignorant enough to think ESPN is somehow circling the drain and on the point of extinction.
 
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If cable goes ala carte (which I doubt happens in the immediate), ESPN will still be one of the biggest dogs in the yard. Channels like Lifetime, History 2, etc will die immediate deaths. This isn't an ESPN problem. This is simply evolution. A model that was propped up by lack of choice running head-on into a mountain of consumers who are in an "on-demand" state of mind.

In ESPN's case, they spend money on large contracts while ignoring market trends. Those contracts will eventually end and be re-upped at more sustainable rates. This nation still has a large appetite for sports. But it is consumed much differently than it was just 10 year ago. ESPiN will adjust. The other networks will continue to crank out cheap to make reality shows.

I think you are looking at this from a sports fan's view of the world. I'll use your example of Lifetime and History 2. Lifetime's avg primetime viewers are 744k which is about double the average viewership of ESPN2 and ESPNU combined. History 2 averages close to ESPN2. I think they are OK. Hallmark channel and HGTV have more combined primetime viewers than ESPN+ESPN2+ESPNU and they are a fraction of the cost.
 

whaler11

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I think you are looking at this from a sports fan's view of the world. I'll use your example of Lifetime and History 2. Lifetime's avg primetime viewers are 744k which is about double the average viewership of ESPN2 and ESPNU combined. History 2 averages close to ESPN2. I think they are OK. Hallmark channel and HGTV have more combined primetime viewers than ESPN+ESPN2+ESPNU and they are a fraction of the cost.

All their programming is completely fungible. Nobody is following any of those networks anywhere.
 
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Spot on. Amazes me that people are ignorant enough to think ESPN is somehow circling the drain and on the point of extinction.

ESPN will not go away, but they have serious LT problems. Their costs are highly fixed and if their revenues flatten or decline due to cable subscribers leaving the bundle, their margins will be squeezed. And, Disney will not accept margin declines for long. That is why it looks like ESPN will not rebid for Monday Night Football, but if ESPN gives up Monday Night Football, I believe cable companies will want ESPN to reduce carriage fees and the cost savings will not flow to ESPN's bottom line. One other point. Competition for sports content is going up as it looks like the tech/streaming companies are interested and they have enormous cash positions to invest in content. None of this is good for ESPN.
 
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ESPN got all the $$$ they could... Good brand... Love the fact that they provide sports at all levels, but, once costs got out of hand to the consumers something has to give... They're about to me toast now.. a lot of crappy low budget sports commentating to come until they fall completely apart....
 
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All their programming is completely fungible. Nobody is following any of those networks anywhere.

OK. Then why are the streaming services racing to sign deals with channels like HGTV?

ESPN Classic and ESPNU each cost more per month than HGTV which has multiples the viewership. ESPN delivers about double the primetime viewers of HGTV at 30 times the cost. If you don't think that is a long term problem, I don't know what to tell you.
 

whaler11

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OK. Then why are the streaming services racing to sign deals with channels like HGTV?

ESPN Classic and ESPNU each cost more per month than HGTV which has multiples the viewership. ESPN delivers about double the primetime viewers of HGTV at 30 times the cost. If you don't think that is a long term problem, I don't know what to tell you.

Because HGTV is fifty cents a month.

No kidding ESPN has a rights fee issues.

They also still generate 11 figures a year in revenue.

You can copy what HGTV does in a week.
 

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