ESPN Woes (losing 15,000 subscribers a day)

[Rocktheworld]

Spot on. Amazes me that people are ignorant enough to think ESPN is somehow circling the drain and on the point of extinction.

When you’re going through a third round of layoffs and can apparently no longer afford SVP and Jemelle Hill, that at least partially constitutes “circling the drain,” no? Is there a recovery from where they are now?

 

[Jerry1714]

When you’re going through a third round of layoffs and can apparently no longer afford SVP and Jemelle Hill, that at least partially constitutes “circling the drain,” no? Is there a recovery from where they are now?

When those two get fired let me know. If either left ESPN would still be the biggest player in sports media, by far.

ESPN’s revenue is expected to rise 4 percent to $12.5 billion this fiscal year after showing no growth in 2016, according to RBC. 12 billion. That is not circling the drain.

ESPN has over 4 times as many subscribers as their next competitor.

This is not an ESPN issue, its a cable issue, ESPN is and always be the biggest boy on the block. (And i hate ESPN).

 

[rich1122]

Too Left Leaning. The are paying for that. True America is tired of it.

 

[whaler11]

Fox News lost 4 million subs between Jan 16 and Feb 17.

Too left leaning I guess.

 

[ktuck911]

Too Left Leaning. The are paying for that. True America is tired of it.

Amen. Down with the Corporatocracies over pretty much everything in America nowadays...

 

[Letsgohuskies11]

they've cornered the market in corn hole viewership though

 

[ktuck911]

ESPN Can’t Afford Monday Night Football Any More

Here is a well written article detailing just how much financial trouble ESPN is actually in

MNF should've stayed on National TV anyways... They knew that giving America Nat'l TV coverage for Thursday Night then Sunday Night games while taking away Monday Night Football was gonna come back to bite them in the a**....

Down with these cable companies too... "Growing the business" models where the consumer (which in majority, consists of the have nots) is tired now....

 

[rich1122]

Fox News lost 4 million subs between Jan 16 and Feb 17.

Too left leaning I guess.

They paid too.

 

[Rocktheworld]

When those two get fired let me know. If either left ESPN would still be the biggest player in sports media, by far.

The fact that we are even down to those two should be concerning. I wouldn’t think a flourishing giant would be unable to keep even its B or C talent around and paid.

You’re telling me ESPN has at worst a neutral prognosis?

 

[Jerry1714]

The fact that we are even down to those two should be concerning. I wouldn’t think a flourishing giant would be unable to keep even its B or C talent around and paid.

You’re telling me ESPN has at worst a neutral prognosis?

I am just saying ESPN is not nearing its demise.

 

[Rocktheworld]

I am just saying ESPN is not nearing its demise.

Okay well that’s not what the “circle the drain” phrase means per se. ESPN may surely be far from the bottom of the drain right now, but the downward circular trend has begun and I don’t see anything that will reverse course.

ESPN as a network doesn’t have other prime time entertainment like the other big networks do to fall back on for revenue: it’s all live sports (for which they overpaid) and highlights/commentary (which they can no longer afford).

 

[ZooCougar]

Too many channels, not enough sports.

 

[MilliniumPrince]

When you’re going through a third round of layoffs and can apparently no longer afford SVP and Jemelle Hill, that at least partially constitutes “circling the drain,” no? Is there a recovery from where they are now?

Companies have laid off folks in years they posted record profits (insert insurance company here_____). ESPN isn't growing they way they need to in order to sustain their current structure. They will restructure. Just about every cable channel you can name would kill for their viewership and ad revenue. They bit off more than the market will let them chew......they were blind, arrogant, and dumb. They will also easily survive. They aren't circling the drain. They don't even know where the drain is located.

Five years from now they will look a lot different. That is true of just about every channel on the dial.....except the ones who may not be here in five years.

 

[UConnJim]

There is more to the ESPN business model which makes it very hard for ESPN to change to an over the top model. ESPN derives ~75% of revenues from cable subscriptions and ~25% from advertising. This was a good mix for economic downturns, but it is not a good mix for a streaming model. In contrast, HGTV is ~30% cable subscription fees and 70% advertising, although more economically sensitive, it means moving to a streaming model is more important and easier for HGTV to follow their audience to drive ad revenue. Also, ESPN's CPMs are close to 50% higher than the next higher cable net. Sure, ESPN has an attractive advertising audience, but that is a huge gap as they have really pressed ad pricing over the years.

It's all academic and we will be able to revisit this thread in a few years to see how the businesses are evolving and performing performing.

If anyone is interested, this is a very in-depth study of the cable tv market done by SNLKagen.

https://ofccolo.snl.com/Cache/CBC3A...\\dmzdoc2\webcache$\&O=PDF&D=&T=&reqFrom=SNL3

 

[whaler11]

There is more to the ESPN business model which makes it very hard for ESPN to change to an over the top model. ESPN derives ~75% of revenues from cable subscriptions and ~25% from advertising. This was a good mix for economic downturns, but it is not a good mix for a streaming model. In contrast, HGTV is ~30% cable subscription fees and 70% advertising, although more economically sensitive, it means moving to a streaming model is more important and easier for HGTV to follow their audience to drive ad revenue. Also, ESPN's CPMs are close to 50% higher than the next higher cable net. Sure, ESPN has an attractive advertising audience, but that is a huge gap as they have really pressed ad pricing over the years.

It's all academic and we will be able to revisit this thread in a few years to see how the businesses are evolving and performing performing.

If anyone is interested, this is a very in-depth study of the cable tv market done by SNLKagen.

https://ofccolo.snl.com/Cache/CBC3AA560637320340.PDF?Y=&CachePath=\\dmzdoc2\webcache$\&O=PDF&D=&T=&reqFrom=SNL3

One thing they’ve got going for them is the huge chunk of MLBAM that Disney bought.

So when HBO or a bunch of other huge networks are bragging about their OTT subs - guess who is getting paid....

 

[Dream Jobbed 2.0]

The packages are infuriating. I love when a “sports package” gets you 10 top sports networks! RodeoTV, golf network, billiards broadcasting channel, the world series of speedboat racing, and the dirt bike station

 

[gtcam]

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...

I hear you BUT this state and the type of people who get elected year after year are to blame - the sooner all these ruling party people fade away, the quicker the state can retire. They can move to California and New York where they will be right at home.
ESPN has brought this upon themselves and to be truthful I only watch it for actual games - I won't listen to the drivel of their "talk" shows.
The problem with ESPN has been Disney calling the shots

 

[uconntailgater]

It will be interesting to see if College football & basketball migrates towards over the air television and conference networks. If conference networks play a bigger role going forward, one would hope we would become valuable for our content ?

Network television shows during the week have been steadily losing viewers. You have to wonder if during the winter months the networks would broadcast some of the better college basketball games during the week?

Things will be changing the next few years and it should be an interesting ride. Hopefully we get a seat at the big boy table when it's all said and done.

 

[whaler11]

I hear you BUT this state and the type of people who get elected year after year are to blame - the sooner all these ruling party people fade away, the quicker the state can retire. They can move to California and New York where they will be right at home.
ESPN has brought this upon themselves and to be truthful I only watch it for actual games - I won't listen to the drivel of their "talk" shows.
The problem with ESPN has been Disney calling the shots

TIL - ESPN’s challenges with the shrinking cable bundle penetration is related to Connecticut state elections.

 

[rich1122]

Nobody Kneels.

 

[uconnfan68]

Okay well that’s not what the “circle the drain” phrase means per se. ESPN may surely be far from the bottom of the drain right now, but the downward circular trend has begun and I don’t see anything that will reverse course.

ESPN as a network doesn’t have other prime time entertainment like the other big networks do to fall back on for revenue: it’s all live sports (for which they overpaid) and highlights/commentary (which they can no longer afford).

It’s all about the rights. ESPN owns the content lots of folks want to see. You don’t have to watch, but you can’t watch it anywhere else.

 

[uconnfan68]

It will be interesting to see if College football & basketball migrates towards over the air television and conference networks. If conference networks play a bigger role going forward, one would hope we would become valuable for our content ?

Network television shows during the week have been steadily losing viewers. You have to wonder if during the winter months the networks would broadcast some of the better college basketball games during the week?

Things will be changing the next few years and it should be an interesting ride. Hopefully we get a seat at the big boy table when it's all said and done.

It’s about the rights. No one is broadcasting for free.

 

[rich1122]

It’s all about the rights. ESPN owns the content lots of folks want to see. You don’t have to watch, but you can’t watch it anywhere else.

It's about competition. Games too long. Too many commercials. Tired of the Liberal bias. They won't be extinct, but more people are finding other things to do.

They probably got great ad rates and Disney was cleaning up. Now it's not such a cash cow I'm guessing.

 

[uconnfan68]

It's about competition. Games too long. Too many commercials. Tired of the Liberal bias. They won't be extinct, but more people are finding other things to do.

They probably got great ad rates and Disney was cleaning up. Now it's not such a cash cow I'm guessing.

Don’t watch. No one will miss you. Don’t expect to see SEC, ACC, AAC, and others somewhere else though. Only ESPN has those rights. Disney loved ESPN when they were 1/3 of their profit, and 2% of their overhead. Now that they’re 10% of profit and 4% of overhead they aren’t as happy. Only $billions in profit every year.

 

[J187Money]

BTW - the record labels are all growing again. They went through 10+ years of disruption and declining revenues as they adapted to the new world, but they aren't dead. Revenue and margins are growing again.

ESPN will adapt. They locked up a ton of content when that was the game - they will take it on the chin for a while as things reset, but don't get too excited. There is a HUGE difference between shrinking margins/profitability and a business like Blockbuster that just ended.