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Disney looking to drop ESPN as traditional tv dwindles



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 2 months ago '05        #1
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stanis3k  topics gone triple plat - Number 1 spot x4
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Disney looking to drop ESPN as traditional tv dwindles
 

 
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ESPN’s near-term strategy is to incrementally increase the price of ESPN+, its limited streaming service, and add more content.

At last month’s Communacopia conference held by Goldman Sachs, Disney CEO Bob Chapek was asked about the importance of ESPN and sports broadcasting to his company’s streaming strategy. His answer sounded like a throw-away line.

“The number one most-viewed thing every year tends to be sports, something like nine out of 10 of the top viewership events in television are sporting events,” Chapek said in a virtual session on Sept. 21. “Who knows what the future will bring, but it’s certainly an important part of our consumer offerings at the Walt Disney company.

Disney makes more money from cable subscribers than any other company, and that’s solely because of ESPN. ESPN and sister network ESPN2 charge nearly $10 per month combined, according to research firm Kagan, a unit of S&P Global Market Intelligence. That’s at least four times more than almost every other national broadcast or cable network, according to Kagan.

Disney requires pay-TV providers to include ESPN as part of their most popular cable packages. It’s a no-brainer for TV providers, who wouldn’t dare drop ESPN.

Meanwhile, the non-sports world is cutting the cord. More than 6 million people ditched pay TV in 2020, according to research firm eMarketer — the highest annual total ever. About 25 million Americans have dropped linear TV bundles in the past decade.

That creates a struggle within Disney that’s poised to escalate. Disney wants people to sign up for its streaming entertainment products, Disney+ and Hulu. Wall Street wants this too. Streaming video is a growth business. Traditional pay TV is a declining one.

It’s also a wise financial swap for Chapek. While Disney makes more than $10 a month per subscriber for sports, it makes far less for entertainment networks such as Disney Channel and FX, which draw lower audiences and don’t command high advertising rates.

If Disney can get a cord cutter to pay $8 per month for Disney+ and $6 for Hulu, it’s a huge win for the company.

The reverse is true for ESPN. Swapping an ESPN subscriber for an ESPN+ customer, who contributes average revenue of less than $5 per month, is a significant loss for Disney. ESPN+ is a streaming service with limited content.

At $10 per month, or $120 per year, multiplied by about 75 million U.S. homes, Disney earns roughly $9 billion annually in domestic carriage fees from ESPN and its a*sociated networks. Advertising that comes with broadcasting sports brings in billions of additional dollars.

That cash allows ESPN to spend big on sports rights, continuing a virtuous cycle. Disney agreed to spend $2.7 billion for “Monday Night Football” in a deal that runs all the way until 2033. ESPN pays $1.4 billion annually for NBA games and will likely pay more when those rights will need to be renewed after the 2024-25 season. The network owns media rights to every major U.S. sport in some capacity.

It also allows Disney to pay up for original streaming content, bolstering the quality of Disney+ and Hulu as the company competes with Netflix and Amazon.

“We’re successfully navigating the evolution of consumer choice,” said Jimmy Pitaro, chairman of ESPN, which is majority-owned and controlled by Disney, in an interview with CNBC in April. “We believe we can be multiple things at the same time. As consumers continue to gravitate toward direct to consumer, we have the optionality that we need.”

Disney’s plan is to incrementally raise the price of ESPN+ as it adds more valuable content while maintaining contractual obligations for exclusive programming to pay-TV distributors, the people said. An early example is Eli and Peyton Manning’s alternative broadcast of “Monday Night Football,” which will air 10 times this season on ESPN2, with some appearances available on ESPN+.

Should the number of pay-TV bundle subscribers drop to a level well under 50 million U.S. households, Disney would likely take ESPN to consumers in a more complete streaming package, said two people with knowledge of the company’s plans. At that point, the economics would flip, as most of the people paying for linear TV would be sports fans. Disney could likely make more from a full-service sports streaming service than it would make in a wholesale pay-TV distribution model.

In the near term, selling ESPN separate from the linear bundle isn’t feasible. Disney has negotiated digital rights flexibility in almost every major rights renewal in the past few years. But the company is currently restricted by its linear pay-TV obligations, which require certain premium programming to stay exclusive to the cable bundle, according to people familiar with the matter.

The uncertainty of how many subscribers will pay for sports in an ŕ la carte streaming world isn’t lost on the leagues. The NFL built in early out-clauses to its most recent 11-year deals with the networks, according to people familiar with the matter, allowing the league to bail if the business model stops working. The NFL can end its agreement after seven years with CBS, NBC and Fox and after eight years with ESPN, said the people, who asked not to be named because the negotiations were private.

ESPN executives are hesitant about moving their prized programming to directly to consumers because of rampant password sharing among young users, according to people familiar with the matter.

“Watching a pirated stream or sharing a streaming service password seems like a victimless crime,” said John Kosner, who led digital media at ESPN from 2003 to 2017 and is now president of media consulting firm Kosner Media. “But it really impacts the business model of sports on streaming services.”

Whether younger audiences even want live sports is another issue for Disney. Other entertainment options, such as social media, mobile games and on-demand entertainment services may be eroding the cultural grip of televised sports. Americans age 13 to 23 are half as likely as millennials to watch live sports regularly and twice as likely to never watch, according to a 2020 Morning Consult survey.

“The overall relevance of sports is an open question for the younger generation,” said Kosner.



visit this link https://www.cnbc.com/2021 .. g-to-past.html
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38 comments
 

 2 months ago '20        #2
Chozen  topics gone triple plat - Number 1 spot x1
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On God y'all don't read the sh*t y'all post
+73   

 2 months ago '09        #3
TriniSoldier  topics gone triple plat - Number 1 spot x1
Props total: 106134 106 K  Slaps total: 24058 24 K
they replaced Bob with another old white man named Bob? that's rich
+12   

 2 months ago '19        #4
Mydrunkenstyle 
Props total: 1234 1 K  Slaps total: 90 90
ESPN+ sucks.
+19   

 2 months ago '04        #5
Javon23  topics gone triple plat - Number 1 spot x11
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I'm still mad cheap greedy a*s Disney closed all ESPN Zone Sports bar/Restaurants.
And then unlike Fox Sports, when they do offer 4K content they don't stream it on their apps. They force you to go through a Cable Service Provider which is absolute Bullsh*t especially if you are paying for ESPN+
And the Games they do have in 4K are sh*t no one wants to watch like BYU vs Baylor tomorrow.
And fu*k Disney for not putting the WNBA Finals on ABC.
fu*k ESPN
+13   

 2 months ago '10        #6
MANNYSOSA  topics gone triple plat - Number 1 spot x1
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If I had the money I’d buy it so y’all won’t be in every thread asking for links
+1   

 2 months ago '16        #7
Homer Pimpson 
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article is the complete opposite of the title


Last edited by Homer Pimpson; 10-15-2021 at 09:29 PM..
+29   

 2 months ago '15        #8
donnyyy  topics gone triple plat - Number 1 spot x7
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I dont care about ESPN and abc

give the NBA back to NBC
+19   

 2 months ago '04        #9
Kadroan  topics gone triple plat - Number 1 spot x20
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Good article. I'd go all in with streaming. Gotta adapt with times.

 2 months ago '10        #10
kawgre12  topics gone triple plat - Number 1 spot x10
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Theres no way op read the article and still came up with that title
+20   

 2 months ago '16        #11
Supreme God  topics gone triple plat - Number 1 spot x15
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 Homer Pimpson said


article is the complete opposite of the title
Right.. I was reading that bi*ch confused. They're not trying to get rid of espn at all.
+3   

 2 months ago '21        #12
King Am I 
Props total: 7296 7 K  Slaps total: 3289 3 K
 donnyyy said
I dont care about ESPN and abc

give the NBA back to NBC
NBA on NBC isn't the same without




+9   

 2 months ago '19        #13
Number5  topics gone triple plat - Number 1 spot x2
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Disney can drop this d*ck in they mouth



+5   

 2 months ago '04        #14
nwking  topics gone triple plat - Number 1 spot x3
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Umm OP Disney is not dropping ESPN ever what are you talking about? It doesn't say that anywhere in the article that they are even thinking about dropping ESPN


Last edited by nwking; 10-15-2021 at 11:02 PM..
+4   

 2 months ago '04        #15
skillahmang 
Props total: 59654 59 K  Slaps total: 12103 12 K
People want to watch sports, see real news.

Talking heads is trash.

Personal niche podcasts are the present and future.

Nobody wants to see a balding screaming dude or a billionaire trust fund f*g**t talk about the news
+2   

 2 months ago '19        #16
Purpleswag23  topics gone triple plat - Number 1 spot x8
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Op go read that damn article better boy... But it seem like ESPN gon have to either get down or laydown petty a*s n*ggas worried about n*ggas sharing each other’s password smh. That’s how u make sh*t work in the hood. The homie got the ESPN+ password. I got the HBO max password. The other homie got the Netflix. Sharing is caring


Last edited by Purpleswag23; 10-15-2021 at 10:13 PM..

 2 months ago '20        #17
Lil Wayne 
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 donnyyy said
I dont care about ESPN and abc

give the NBA back to NBC
That NBC theme song for the NBA games right before Bob Costas came on used to get me excited as hell for the pre game when I was little
+1   

 2 months ago '20        #18
bayareapiff 
Props total: 2323 2 K  Slaps total: 249 249
 Mydrunkenstyle said
ESPN+ sucks.
The only reason I have the sh*t is for UFC f*ght nights. It's worth it for me to have f*ghts 2-3 weekends a month for $5.99.

But if UFC left and put all of their sh*t on f*ght pass, I'd be out

 2 months ago '20        #19
bayareapiff 
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 Homer Pimpson said


article is the complete opposite of the title
I was confused reading that sh*t. I thought I was the retard for a second
+2   

 2 months ago '11        #20
whouthinkitis  topics gone triple plat - Number 1 spot x1
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 donnyyy said
I dont care about ESPN and abc

give the NBA back to NBC
I been asking for this for YEARS! When NBC had the NBA games they had a game on TV every damn weekend w/premier matches and sh*t. ESPN be putting on squads that's barely at .500 or worse against #1 & #2 seeds don't nobody want to watch that.

Let NBC get the rights to NBA again b/c ESPN presentation for basketball games is stale. TNT has way better presentation and they do a 1hr post game show.


Last edited by whouthinkitis; 10-15-2021 at 11:31 PM..

 2 months ago '04        #21
verbaldesypher 
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I only have espn+ for boxing. And I’m using it right now for Navarrate v Gonzalez

 2 months ago '11        #22
Ant O 
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 WalkingBucket said
I don’t even own a tv no more just a laptop and a desktop pc with a large monitor that I stream and watch movies on

I can watch any game I want without cable
Fam what you do when you females over???

I mean you could play music and set the mood. But what if she wants to watch some sh*t???
+1   

 2 months ago '11        #23
Ant O 
Props total: 27542 27 K  Slaps total: 2455 2 K
 WalkingBucket said

[spoiler - click to view]



I have a 32 4K uhd monitor and I affix it in front of my couch or bed. Works out perfect
I wasn't trynna troll either. Was legit curious lol.


You have a led strip set up???


I have one. Those and a candle from bath and body works got my hit rate at 97%.


That link work on a ps4??? Props btw
+2   

 2 months ago '04        #24
Liquid-Science  topics gone triple plat - Number 1 spot x1
Props total: 3947 3 K  Slaps total: 678 678
I got the disney bundle...All I watch on ESPN+ is a UFC f*ght night sometimes

They still force you to have cable to watch anything good that's live tv on there

If they gonna raise the price, they need to cut the rule where you gotta have cable to watch live sh*t that's on espn networks

 2 months ago '21        #25
TreueBlutEhre 
Props total: 7800 7 K  Slaps total: 746 746
 kawgre12 said
Theres no way op read the article and still came up with that title
great click bait I'll give him that
+1   



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