OT: Big Layoffs at ESPN
- Thread starter RUtix4me
- Start date
the internet isn't changing the cable model, it's simply shifting the format.
it will take a gun to the head of the programmers and providers to break the model, and the FCC and the legislature are the only ones with those guns, and both are total shills to the providers.
Last edited:
Things have definitely reached the saturation point. I mean, how many different ways can you hear about the same topic and from how many different people/shows/outlets? Almost everything is overhyped and overexposed... right down to the way kids announce their college choices.
Nobody prepared for it effectively. FS1, NBCSN, all those channels are having the same problem, even non-sports channels. Let's just take ESPN and FS1 as an example. Both of them lost about 3-5% revenue from the previous year. The difference is, ESPN make more money, so their total revenue loss is bigger, but the percentage is about the same.
The ratings for shows like Sportscenter, PTI, etc. aren't really a huge deal. ESPN's cash cow has always been live content, mainly NFL, college football, MLB, men's basketball, and so on. That is, and always has been, where their real money comes from. All these studio shows are really just filler material between live events.
In other words, this is really a cable problem. ESPN just gets the headlines because they are the biggest channel, but it's an industry-wide problem.
Your last name is Variappa is it? JK
I bowled my first 200 (Dutch) when I was 11. Loved bowling... still do.
Hate the ACC / SEC bias @ ESPN...still do.
MO [cheers]
Your last name is Variappa is it? JK
I bowled my first 200 (Dutch) when I was 11. Loved bowling... still do.
Hate the ACC / SEC bias @ ESPN...still do.
MO [cheers]
Karma for all the negative crap about Rutgers. SL and NJ.com on deck.
ESPN PROBLEM: They focus more on their tv personalities than the sports themselves. Trying to make Scott, the late night West Coast guys, the 4-6 pm jokes all into MVPs....just the opposite of the NBC network for hockey--where the focus is on the SPORT not the various studio experts.
This isn't unexpected but as long as they have quality live content they'll be fine as I've said before. Times have changed and the business model has to be adapted and they can't live in the lap of luxury anymore where they might not worry about cost controls as much, so now they have to right size their costs. It's still the jewel network on cable so if you think they have issues what do you think about all the other networks.
Disney will adapt and figure it out. I mentioned some time back in the future they may offer it OTT or possibly on pay per view for the big sporting events they own, well at least the OTT part may be coming to fruition. I believe one company Disney recently acquired a stake in, with the option for further ownership IIRC, BAMTech is suppose to be part of the roll out of a OTT service for ESPN in the future. So there will likely be a buffet of choices in the future, still part of the "normal" bundle, maybe part of some skinny bundles and OTT and who knows maybe also pay per view for single events. Point is I think they'll figure it out and be fine. To me for Disney/ESPN it's just an adjustment period where they're figuring things out and adapting. They might not print money like they used to but they'll be okay.
Who knows Disney could get bigger and go vertical. Recently, the Verizon CEO opined openly about the prospects of a merger with companies like Disney, CBS, Comcast. I can't particularly envision Verizon/Comcast passing regulatory hurdles but a vertical integration with Disney or CBS seem more plausible if anything ever were to happen. Comcast tookover NBC, ATT took over DirectTV and Time Warner so it would fit that similar mold. Never understood the yahoo/AOL takeovers by Verizon and the wireless side has been losing subscribers to the likes of TMobile and others so I could see them willing to "beef" up.
Disney will adapt and figure it out. I mentioned some time back in the future they may offer it OTT or possibly on pay per view for the big sporting events they own, well at least the OTT part may be coming to fruition. I believe one company Disney recently acquired a stake in, with the option for further ownership IIRC, BAMTech is suppose to be part of the roll out of a OTT service for ESPN in the future. So there will likely be a buffet of choices in the future, still part of the "normal" bundle, maybe part of some skinny bundles and OTT and who knows maybe also pay per view for single events. Point is I think they'll figure it out and be fine. To me for Disney/ESPN it's just an adjustment period where they're figuring things out and adapting. They might not print money like they used to but they'll be okay.
Who knows Disney could get bigger and go vertical. Recently, the Verizon CEO opined openly about the prospects of a merger with companies like Disney, CBS, Comcast. I can't particularly envision Verizon/Comcast passing regulatory hurdles but a vertical integration with Disney or CBS seem more plausible if anything ever were to happen. Comcast tookover NBC, ATT took over DirectTV and Time Warner so it would fit that similar mold. Never understood the yahoo/AOL takeovers by Verizon and the wireless side has been losing subscribers to the likes of TMobile and others so I could see them willing to "beef" up.
I think you are overly optimistic because of the horrible NFL and NBA deals ESPN signed that have a long way to run.
In theory they can offer bundles, pay per view, etc.to change and be okay. In reality, to match current revenue they need to get 25% of the households to pay $35 a month for a bundle for all 12 months out of the year. That isn't happening in a world where NBC Sunday Night football is the only weekly show that gets 25% of people to watch and the history of the HBO bundle shows many people will add/drop expensive channels based on what content is on that month. They have no chance of making anywhere what they need from February to August.
You can say they're horrible and I don't remember any of the details but i know they paid a ton for all their sports properties but that's the one place they have to be careful in how much they cut. Because that's their lifeblood not any of these sports personalities. Without quality live content they die because they aren't the originators of any of it. They always have to buy rights and make it appealing enough that none of these leagues ever decide to own and produce everything themselves. That will kill ESPN.
Will they be the cash cow for Disney that they have been all these years? Not likely but I think through their variety of delivery mechanisms they'll figure out the proper business model to get their costs/expenses in line with their revenues. Can I give you all the nitty gritty numbers? Nope but that's just my thinking.
To put this in perspective, think about the fact that tv rights to all Big Ten football games for the next six years cost the same amount as a single NBA season. It is not difficult to see which of these products would be profitable.
ESPN's MNF deal is also likely an albatross.
They need to cut their fees to the networks and start offering a la carte to the cord cutters
The devil is in the details of those contracts. The story is the "purge" is going to eliminate up to 70 on air personalities who are making $1-3 million a year on average. Assume those cuts save them $140 million a year. That is less than they are paying the NFL for just one of the Monday Night Football games they get.
I get that live content is the only thing that can keep them going. My point is that they completely overpayed for the NFL and NBA contracts, hoping that was going to be the bold move that forced everyone to still need their family of channels for another decade, but that bold move failed. They are stuck with bad contracts with long terms yet to run, cord cutting keeps accelerating, and their overall cost structure due to those contracts is going to make it very hard for ESPN to reasonably price those new delivery methods you cite.
They are losing viewership because of their heavy left ideology as well as less real sports talk and way too much opinion pieces. I haven't really watched espn for years except every day at the gym when you don't have a choice.
Heavy left ideology ESPN? Huh?
They certainly do enough SEC and NASCAR
You have to be blind and deaf to not see and hear that ESPN has become the Social Justice Warrior Network. Station is red hot garbage outside of live sports events.
I'm not sure about the far left thing unless you normally watch Fox and listen to Levin and then can't stomach normalcy.
Either way I don't watch ESPN almost at all. Used to be a fun channel to throw on, but they just aren't good anymore.
Too much hype to their chosen teams I.em patriots, SEC, etc. Almost no hockey anymore, too much babble and exhausted NFL talk. Just don't care for them much except that little after work line up, but I don't really tune in to that either.
Either way I don't watch ESPN almost at all. Used to be a fun channel to throw on, but they just aren't good anymore.
Too much hype to their chosen teams I.em patriots, SEC, etc. Almost no hockey anymore, too much babble and exhausted NFL talk. Just don't care for them much except that little after work line up, but I don't really tune in to that either.
Yea that heavy left ideology is the reason millenials are cutting their cable cords causing issues for a network that is bloated with talent and tv deals....
Their shows and the way they decide which employees to fire and which not are far left. I.E. Curt Schilling. Even without that the channel is just bad.
Espn is to sports what MTV is to music.
ESPN's downfall has nothing to do with whether they are left leaning or not. Their programming is terrible, not entertaining and they have over saturated their brand. If not for their live games they would be an even greater after thought. Also, the way people consume sport's news has changed.
Saw a report on a business site, that the ESPN job cuts will actually occur later today. Supposed to let go of "100 on-air personalities".
Is there a chance The Michael Kay Show is just the The Show later today? Dead air would probably get similar ratings.
It's almost as if having instant access to all results & highlights along with being able to go to get the news about your favorite team from a place dedicated to just that team has damaged a business model based on providing sports scores and highlights as well as a bit of talk about your favorite team.
ESPN hasn't changed in a vacuum, everything else has gotten better and they have had to try and adjust their offerings. It hasn't worked, but I don't know that I could think of a model that does work given what the competition is now. It's like ragging on Blockbuster for not keeping up their rental business. Things change. The market changed, and the old business model of centralized distribution of sports content has gone the way of the horse and buggy.
ESPN hasn't changed in a vacuum, everything else has gotten better and they have had to try and adjust their offerings. It hasn't worked, but I don't know that I could think of a model that does work given what the competition is now. It's like ragging on Blockbuster for not keeping up their rental business. Things change. The market changed, and the old business model of centralized distribution of sports content has gone the way of the horse and buggy.
Actually, the way this topic was presented on the Free Board made this very relevant from a Rutgers perspective...
How does this effect us going forward with new contracts?
Are we going to lose out just was we are becoming full members?
Some have said since live content is king we should be okay but others weren't so sure.
Wouldn't that be so "us" if that were the case? Lol
ESPN sports coverage has slipped Hell I used to be able to go watch their ticker for five minutes and grab scores I wanted or needed Now it can be ten minutes without getting past two r three baseball games and all the fantasy stats they supply. Hell they have multiple networks streamline One for sports one for fantasy sports. Get back to covering pure sports at least on one of the channels
The 'heavy left' comment is interesting. Was having dinner with my brother-in-law the other day, and he stated he watches ESPN much less and that he always feels like they are pushing a social agenda.
My take is that with the internet, we get our sports fix online, and the ESPN and Sportscenter don't resonate because of that. Plus, they have 18-20 hours a day of non-live event programming on four or five channels, and there isn't enough worthwhile content to fill the time. The only reaction they have had is to get the loudest personalities possible, and it just feels like a lot of yelling. The way people consume content has largely passed them by.
My take is that with the internet, we get our sports fix online, and the ESPN and Sportscenter don't resonate because of that. Plus, they have 18-20 hours a day of non-live event programming on four or five channels, and there isn't enough worthwhile content to fill the time. The only reaction they have had is to get the loudest personalities possible, and it just feels like a lot of yelling. The way people consume content has largely passed them by.