Tv money

[Exit 4]

Hopefully we get some news on a tv contract for football soon, like in the next 60 days.

In the meantime this tweet seems of interest; cable erosion

 

[coachcap]

MSG is a skewed example: Cox Communications took MSG off of its cable systems in Hartford County as soon as YES Network went on the air years ago. If the Knicks & Rangers were annual contenders those 8 percent would return. The Dolans can't get out of their own way.

 

[AD DB Burner]

MSG is a skewed example: Cox Communications took MSG off of its cable systems in Hartford County as soon as YES Network went on the air years ago. If the Knicks & Rangers were annual contenders those 8 percent would return. The Dolans can't get out of their own way.

Yeah, I live in New London County and Xfinity doesn’t even offer MSG. Aside from satellite (which there is always a risk of blackout), I believe the only cable option with MSG is Frontier and they aren’t even available everywhere.

 

[PopcornHatKid]

One of the reasons the MSG subscriptions may have declined is their inability to stream from their app to google chromecast or on roku. The app itself is great for real time stats, unique camera angles, and "betting," but its super frustrating when you can't watch the games on your TV.

Also, the Knicks stink with no hope in sight and people aren't interested.

 

[Exit 4]

Hard to imagine the B1G channel, SEC channel, etc are caught up in the same technological shift.

 

[JohnFSilver]

Cord Cutting and unbundling is real.

Look at what ESPN + and Disney + are doing. Just a matter of time where ESPN linear can be purchased ala carte. Probably when the cable contracts expire.

This just shows that a disrupter has destroyed a once monopolistic industry.

It also shows the need for content that people want. Talking with a former colleague recently, the MMA package has massively helped ESPN+.

And, Disny+ will own the world. There was a time that all that meant anything was a carriage. The content didn't matter. Now, content matters even more than ever.

Edit: Check the DIS stock chart. Up over 50% since 2016. Was $91 when Clay Travis started writing about death of ESPN on Fox outlets. Stock is at $143 today. I think they will be OK.

 

[UConnJim]

Cord Cutting and unbundling is real.

Look at what ESPN + and Disney + are doing. Just a matter of time where ESPN linear can be purchased ala carte. Probably when the cable contracts expire.

This just shows that a disrupter has destroyed a once monopolistic industry.

It also shows the need for content that people want. Talking with a former colleague recently, the MMA package has massively helped ESPN+.

And, Disny+ will own the world. There was a time that all that meant anything was a carriage. The content didn't matter. Now, content matters even more than ever.

Edit: Check the DIS stock chart. Up over 50% since 2016. Was $91 when Clay Travis started writing about death of ESPN on Fox outlets. Stock is at $143 today. I think they will be OK.

Read the Disney earnings report closer.

Disney+ is a huge winner, but ESPN and ESPN+ posted mixed results. ESPN had down earnings this Q including down advertising revenues due to lower viewership. They had higher programming costs and lost subscribers offset by continued price increases to captive cable companies which is clearly not sustainable.

ESPN+ had 6.6 million subscribers at the end of the year, but it is being bundled with Disney+ and Hulu for $12.99/month which is a great deal. Disney+ has 26.5 million subscribers, but ESPN+ has 6.6 million. Most important, the average revenue per ESPN+ subscriber was $4.44 in the Q, -5% y/y and this number is inflated due to the way they are allocating the bundle pricing. To put this in perspective, ESPN+ current revenue run rate is $117 million/year and Disney will do ~$83 billion in revenues this year.

Nobody is buying Disney stock due to ESPN or ESPN+. Bottom line is that the stock has done well because investors are becoming more confident that the declines at ESPN will be offset by Disney's growth in other businesses and projected success in the streaming wars. Disney has successfully diluted the earnings impact of ESPN in their operating earnings and it would not surprise anyone if they divest/spin the business off in the future. The success of Disney+ probably increases the odds that Disney will get rid of ESPN.

 

[freescooter]

Cable in general and ESPN in particular have been shedding customers for a while now. I’m guessing that the next round of conference realignment will feel the pinch. All these conference networks will be carrying a much bigger load as will the leagues themselves. I suspect many if not most will look much more like the AAC deal with lots of games on streaming. Honestly there is no more demand for Illinois-Indiana or NC State-Boston College or Old Miss-Vanderbilt than there is for Tulane-Tulsa. Most of that could go to streaming and nobody would care. And lots of production costs getting passed to the leagues.

Wouldn’t be too surprising to see the P5 become the P2-3 either. Probably P3 because you can’t leave the west without a presence even if the teams aren’t that good and the people don’t much care. Clemson and FSU to the SEC. Texas Oklahoma to the PAC, then the Big 10. Why pay the ACC and Big 12 all that money to subsidize mediocre to bad programs with zero national interest. “I can’t wait for the upcoming Pitt-Georgia Tech game” said nobody ever.