Effect of cord cutting on ESPN...very interesting article.

[JDeuce]

Yeah I don't think anyone is paying $20-30 a month for ESPN. How much of a jam they are in probably depends on how fast chord cutting accelerates.

What's funny is it wouldn't be $20-30. It'd need to be much higher.

Last I saw, ESPN reaches 90 million subscribers. But let's say only 20 million of those would want it badly enough to pay for a la carte.

ESPN would need to charge those 20 million subscribers $300/month just to make back the $6 billion. There is no way in hell anyone is paying $300/month for ESPN.

This is going to be very interesting to see how it plays out. All the little millennials running around saying how great this is now (and sure, when you are single it is) are in for a rude awakening in 10 years when they have to pay $150/month for 15 channels...getting far less bang for your buck than you do now (even if you don't watch everything you get). I think ultimately, more broadcasters will do what WWE does...broadcast some content through the cable companies, then other exclusive content on their own in-house channels or sites.

 

[JDeuce]

^^^^^^

Err, bad math on my part. I meant to say $300/year, not month. So yeah, about $25/month. Don't think most people would be too thrilled with paying that.

 

[PatsFan1283]

What's funny is it wouldn't be $20-30. It'd need to be much higher.

Last I saw, ESPN reaches 90 million subscribers. But let's say only 20 million of those would want it badly enough to pay for a la carte.

ESPN would need to charge those 20 million subscribers $300/month just to make back the $6 billion. There is no way in hell anyone is paying $300/month for ESPN.

This is going to be very interesting to see how it plays out. All the little millennials running around saying how great this is now (and sure, when you are single it is) are in for a rude awakening in 10 years when they have to pay $150/month for 15 channels...getting far less bang for your buck than you do now (even if you don't watch everything you get). I think ultimately, more broadcasters will do what WWE does...broadcast some content through the cable companies, then other exclusive content on their own in-house channels or sites.

Traditional cable might be in decline but the article says what if it falls by another 1/3rd, 90 to 60, IMO cord cutting on that level isn't happening anytime soon. The cable companies would probably just adjust to that type of decline.

The 6.50 they get has been going up 10% a year as well. Then ESPN has other revenue streams besides subscription fees (subscription fees around 2/3rds as of 2012, I'd guess it is around the same now) They get close to 4 billion a year off advertising revenue, close to 1 billion off digital ads from the website. Author didn't really talk much about that.

So I think it will be more of a correction than a big bubble burst that reverberates throughout the entire sports media landscape but we'll see.

 

[dirtymoose]

ESPN has been lame for a while now. Sports center used to be a "thing". Now ever sports station has their own version.
ESPN also seems to have lost, in one way or another some of their better on air personalities.

I mean even the Monday night football package stinks.

If ESPN was off my TV tomorrow, I wouldn't even notice or care.

 

[OAKAS]

I know I do not watch much ESPN like I used to. There are a couple of reasons why.

The way they covered Tebow when he came into the league. They showed 24 hours a day of Tebow practicing in training camp.

The 24 hour coverage of where Lebron was going from the Heat. It was on all there platforms all day long. Just a complete joke.

Finally the last straw is giving Caitlyn Jenner the Arthur Ashe Courage Award. UNBELIEVABE

 

[CoachCB]

I pay around $110-120/month for DirectTV at 2 locations/houses....and I think it's well worth it. The main reason I keep it is for sports. I'm not going to jump through hoops to watch a game when I want to (by going to a website...or a sports bar...or whatever). I think the cord cutting will level off and the cable companies will find a balance on pricing (to prevent losing more customers....and gaining more customers).

 

[thekeyman]

I hardly even watch espn anymore as its all garbage.their segment shows suck,the people they have doing them suck,etc........i used to go on their site almost everyday but i can't stand how they changed it so i never even go on it anymore.......espn has given me a bad taste in my mouth

 

[PatsFan1283]

I pay around $110-120/month for DirectTV at 2 locations/houses....and I think it's well worth it. The main reason I keep it is for sports. I'm not going to jump through hoops to watch a game when I want to (by going to a website...or a sports bar...or whatever). I think the cord cutting will level off and the cable companies will find a balance on pricing (to prevent losing more customers....and gaining more customers).

Yeah, think this is accurate. At first, I found the article compelling but then read a little more because it interested me and I think it is more alarmist than anything.

 

[Acebb]

[h=1]What’s Wrong With the NBA’s TV Ratings?[/h]
Through last week, the average audience for TNT’s national games is down 8.2% from 2014, according to Nielsen, while ESPN’s national games are down 5.6%. Both cable networks also saw early-season losses in the valuable demographic of adults ages 18 to 49, with TNT off by 12.7% and ESPN down 4.5% through Thursday.
....
Cable television audiences in general have declined as a growing number of Americans cancel their cable subscriptions or decide not to sign up. ESPN lost seven million households in the last two years, according to regulatory filings, and TNT about four million, according to media research form SNL Kagan. As a result, audiences have been declining across cable: average total viewers are down 6% since the NBA season began. ESPN’s audience is down 9% in that time and TNT’s by 8%, according to the research firm MoffettNathanson. The overall audience declines on these networks are roughly in line with the loss of NBA viewers.

====
Fascinating article.

 

[texansfan]

I still can't believe what I pay for both cable and cell phones each month. Two adults, 4 kids, each with their own phones and cable boxes. Probably slightly over $600 a month.

$7200 a year!

 

[SunDodger]

I'm sure gtc08 will say it is just an statistical anomaly. Nothing to worry about.

 

[seldomseen]

It's the same for other programming. More variety and more cord cutters. Haven't had cable for 8 years and still watch everything I want to.

 

[cloverleaf]

ESPN has become elementary school for a football fan above the 8th grade. Show after show of nine blacks and two whites expressing their dumbass commentary of football. Boring, Tired, Silly, Expected, unless your an 8th grader.

Bad news for ESPN....Junior High kids don't pay the bills. ESPN is Goddamn PC boring...............experts don't see that?

Jesus ESPN...send your experts to MSNBC for some lessons!