ESPN's future

Quote: Pacomartin

That may be a stretch, but of course the problem is one of a spiral. If 25% would leave to save $8/month, not the price must go over $10 a month, and then more people would leave.

Might be, might not. But I would wager that it would be >50%.

Quote:

TNT is the most expensive entertainment network on cable, and some people may argue that they don't watch most of the shows: Rizzoli & Isles, Major Crimes, The Librarians, Boston's Finest, Murder in the First, Animal Kingdom, Good Behavior, and The Last Ship. But if you watch even one of them, then the $1.50 is not worth arguing about.

But I would argue that ESPN is not the first head on the chopping block, but rather the broadcast stations like ABC, CBS, NBC, FOX, CW, and ION. Collectively they are starting to cost as much as ESPN, and consumers can theoretically put up antennas.

Most folks will tolerate $1.50 for a show or two. I'd get Food Network for that. Heck, that is a channel I will just run for background noise. You could be right on the broadcasts, people are amazed how well modern antennas work. Family party and one of my brother's in-laws was rigging up a digital antenna. I knew about them but not one that looked as sleek as what he had.

Here's the kicker--the older folks who grew up with antennas could not understand what it was! Like they forgot how over-the-air TV is about. Explained several ways, blank looks. I think I was the one who explained it was like old rabbit ears when they got it. Then when they did you would think we invented the light bulb while they were in the other room.

Quote: AZDuffman

Most folks will tolerate $1.50 for a show or two. I'd get Food Network for that

Food Network fees are probably less than 20 cents a months. This chart was presented last year, and estimates current fees and what the channel would cost ala carte.

Quote: Pacomartin

Food Network fees are probably less than 20 cents a months. This chart was presented last year, and estimates current fees and what the channel would cost ala carte.

All mine are at the bottom, so I could have a nice package for $10/mo. I assume "reach" means how many people watch?

That ESPN number is amazing and does show that they could easily hit a death spiral.

Quote: AZDuffman

All mine are at the bottom, so I could have a nice package for $10/mo. I assume "reach" means how many people watch?
That ESPN number is amazing and does show that they could easily hit a death spiral.

With all of the cellular companies selling unlimited data packages for $80 or less per month, and virtual reality cardboard selling for $3.29 the lock that cable has should unravel fairly soon.



#10 Viacom
Fortune ranking: 180
Revenue: $13,497.00
Profit: $1,548.00

#9 CBS
Fortune ranking: 174
Revenue: $14,059.80
Profit: $724.20

#8 Time Warner Cable
Fortune ranking: 137
Revenue: $18,868.00
Profit: $1,308.00

#7 Google
Screenshot
Fortune ranking: 92
Revenue: $29,321
Profit: $8,505


#6 News Corp. Revenue: $32,778 Profit: $2,539
AP
Fortune ranking: 83
Revenue: $32,778
Profit: $2,539

#5 Amazon.com
Fortune ranking: 78
Revenue: $34,204.00
Profit: $1,152

#4 Comcast
Fortune ranking: 66
Revenue: $37,937
Profit: $3,635

#3 Walt Disney
Fortune ranking: 65
Revenue: $38,063.00
Profit: $3,963.00

#2 Apple
Comedy Central
Fortune ranking: 35
Revenue: $65,225.00
Profit: $14,013.00

#1 General Electric
Fortune ranking: 6
Revenue: $151,628
Profit: $11,644

ESPN Collapse Continues



I have to say that I have not seen a management in such similar denial since probably GM in the 1980s. Their business model is really near death. I love the refrain in the article, "We're still making money!"

Yes, they are, but the squeeze she is a coming.

Quote: AZDuffman

Yes, they are, but the squeeze she is a coming.

Sling TV is selling a package for $20 on Internet Protocol TV. It's $5 for a collection of 23 cable channels (about 15 are traditional cable channels) and $15 for the Disney Corporation Channels (viewed @ one stream at a time even in the same house).

Disney is trying to pursue this line of business, but at the same time not pissing off their 85+ million traditional cable subscribers and the cable companies that carry ESPN on their basic tier. Cable companies pay about $9-$10 for ESPN, Disney and Freeform (a Disney channel formerly called Family Channel formerly PTL). But the huge difference is the $9-$10 is not optional with basic cable, while Sling is an optional retail product.

Base ($5)
1 TNT :Turner Broadcasting System, Inc. a division of Time Warner
2 TBS :Turner Broadcasting System, Inc. a division of Time Warner
3 CNN :Turner Broadcasting System, Inc. a division of Time Warner
4 Cartoon Network :Turner Broadcasting System, Inc. a division of Time Warner
5 Adult Swim :Turner Broadcasting System, Inc. a division of Time Warner
6 AMC :AMC Networks
7 IFC :AMC Networks
8 BBC America :AMC Networks (50%)
9 A&E :A+E Networks
10 History : A+E Networks
11 Lifetime: A+E Networks
12 Comedy Central : Viacom
13 Local Now by The Weather Channel :Consortium owned
14 Travel Channel :Scripps Network
15 Food Network :Scripps Network
16 HGTV :Scripps Network
17 AXS TV
18 Cheddar
19 El Rey
20 Flama
21 Maker
22 Newsy
23 Polaris TV
24 Viceland
25 Bloomberg
26 The Blaze
27 Galavisión

Disney Corporation Channels (ADD $15)
1 Disney Channel
2 Freeform
3 ESPN
4 ESPN2
5 ESPN3

No Animal Planet
:-(
Been getting into North Woods Law

I get a couple Espn channels, an all NFL
channel, all NHL, all NBA, golf, all
pro baseball, 3 college BB channels,
tennis, soccer, and half a dozen others
that I don't even know what they
are. And I never ever even watch sports.
I'm just too lazy to weed it all out.

I just looked and I get the women's
lacrosse channel. What's wrong with me.

Quote: Evenbob

I get a couple Espn channels, an all NFL
channel, all NHL, all NBA, golf, all
pro baseball, 3 college BB channels,
tennis, soccer, and half a dozen others
that I don't even know what they
are. And I never ever even watch sports.
I'm just too lazy to weed it all out.

I just looked and I get the women's
lacrosse channel. What's wrong with me.

Cut the cord!

Do something better with the $1000 a year you end up saving.

Quote: AZDuffman

Their business model is really near death. I love the refrain in the article, "We're still making money!"

There were a lot of articles that said if ESPN is collecting $7 per TV household today, that only 1/5 of the households would purchase it if it was ala carte. So the logic was that ESPN would cost at least 5*$7=$35 if it was ala carte. Commercial revenue may adjust as well.

The biggest problem is that ESPN and broadcast in general keeps doubling their contract with the NFL, so they have to keep increasing revenue.

However Sling is selling ESPN plus 29 other channels for $20. Now ESPN is still a basic tier channel, so ESPN is losing customers because cable and satellite TV are losing customers.

Right now networks are trying to keep the killer popular TV show in case the whole system falls apart. They want people to say, I have to have AMC TV because I need my "Walking Dead" fix (for example).

The massive disruption will come when people don't need networks at all. They just have the internet and they buy the "shows" they want instead of the "channels".