Zguy28 Posted July 16, 2015 Share Posted July 16, 2015 Is ESPN A Giant Bubble About To Burst? http://www.foxsports.com/college-football/outkick-the-coverage/is-espn-a-giant-bubble-about-to-burst-071215 Big news came out last week that might have gotten lost in the shuffle of the slowest sports week of the year -- according to the Wall Street Journal the number of cable subscribers is beginning to contract in a more rapid fashion. In particular, ESPN has lost 7.2 million subscribers in the past four years, over three million since last year. That could have a seismic impact in sports media since if the cable bundle is one large bubble -- as some have been suggesting for years -- then the sports universe may be in for a cruel tumble. I'll explain why that could be, but first let's spend some time with a refresher on the cable and satellite industry. You pay for every single channel you receive on your cable or satellite package. Most people don't realize this because the cable bill is one large number, but if you break your bill down every single channel has a monthly cost. Here are the 15 most expensive national sports networks along with what they cost a month and the number of homes they're in. (Numbers courtesy of SNL Kagan). 1. ESPN $6.61 x 94.5 million homes = $7.5 billion 2. NFL Network $1.31 x 73.6 million homes = $1.16 billion 3. FS1 .99 x 91.2 million homes = $1.08 billion 4. ESPN2 .83 x 94.5 million homes = $941.2 million 5. SEC Network .66 x 69.1 million homes = $547.3 million 6. Golf Channel .35 x 79.4 million homes = $332.2 million 7. NBC Sports Network .30 x 83.1 million homes = $299 million 8. Big Ten Network .39 x 62 million homes = $290.2 million 9. MLB Network .26 x 71.3 million homes = $222.5 million 10. FS2 .28 x 64 million homes = $215 million 11. NBA TV .29 x 57.2 million homes = $199 million 12. ESPNU .22 x 74.9 million homes = $198 million 13. CBS Sports Network .26 x 61 million homes = $190.3 million 14. NHL Network .32 x 37.4 million homes = $143.6 million 15. Pac 12 Network .39 x 12.3 million homes = $57.6 million Rest at link. Link to comment Share on other sites More sharing options...
@DCGoldPants Posted July 16, 2015 Share Posted July 16, 2015 Well, its not like Foxsports has any interest in this. I don't know if their bubble will burst. But do we think they are a joke these days? Foxsports1 had a chance to be the source for clean game reviews that wasn't over-fluffed. Instead they hired D. McNabb and loud mouths. Oh, and a bunch of blonds like the News channel. I wish they would just pick up coverage of more MLB from outside my region and then a simple sportscenter type show that did quick highlights of every game and the box score. That's it. Link to comment Share on other sites More sharing options...
Larry Posted July 16, 2015 Share Posted July 16, 2015 Observing that what we have, here, is a Fox News network which was created for the purpose of taking business away from ESPN, predicting doom for ESPN. Doesn't mean that they couldn't possibly be right. (And I get the impression that the cable companies have been grumbling about some of ESPN's policies, for a decade). But observing that this is a source that has a huge stake in this prediction coming true. Link to comment Share on other sites More sharing options...
BRAVEONTHEWARPATH93 Posted July 16, 2015 Share Posted July 16, 2015 Yeah you gotta consider the source here. They recently created a network designed specifically to rival ESPN But people dropping cable is real. I've done because I can't afford it at the moment with college and stuff Link to comment Share on other sites More sharing options...
MattFancy Posted July 16, 2015 Share Posted July 16, 2015 I do think the sports rights bubble is prime for bursting. How many billions do these networks really have? Can they afford to keep shoveling the leagues all this money for the foreseeable future? Link to comment Share on other sites More sharing options...
Kosher Ham Posted July 16, 2015 Share Posted July 16, 2015 That bubble won't burst anytime soon. ABC owns ESPN, Disney owns ABC and Star Wars... Link to comment Share on other sites More sharing options...
MattFancy Posted July 16, 2015 Share Posted July 16, 2015 That bubble won't burst anytime soon. ABC owns ESPN, Disney owns ABC and Star Wars... Disney told ESPN to slash $250M off their budget by 2017 Link to comment Share on other sites More sharing options...
endzone_dave Posted July 16, 2015 Share Posted July 16, 2015 I think the day will come when cable providers have no other choice than to let you pick and choose what channels you subscribe to. When that happens, ESPN is going to get crushed. I can't see myself paying $6.61/month for their crap. Link to comment Share on other sites More sharing options...
Larry Posted July 16, 2015 Share Posted July 16, 2015 That bubble won't burst anytime soon. ABC owns ESPN, Disney owns ABC and Star Wars... True, but possibly also a bit deceptive. (Actually, I don't know if ESPN is owned by ABC, or directly by Disney.) But, while, when people think of Disney, they either think of the parks, or Disney movies, ESPN is really where Disney makes it's money. The TV networks account for 45% of Disney's profit, every year. (And almost all of that profit is from ESPN.) And I think the parks and other recreation (like the cruise ships) are another 35% or so. The Disney movies, and all of the Disney merchandising, account for almost none of the company's profits. ESPN really is the tail that wags the Disney dog. Link to comment Share on other sites More sharing options...
LeesburgSkinFan Posted July 16, 2015 Share Posted July 16, 2015 Overreaction. ESPN won't lose.Which cable channels get the best ratings? Despite Breaking Bad and the Christmas and Valentines Movie Specials, AMC and Lifetime don't get the ratings. ESPN is delivering stellar ratings. The CFP broke all-time records - despite losing cord-cutters.While there is definitely a shift to more channel-specific and on demand programming - it won't be ESPN or sports that suffer; it will be Lifetime and AMC and the bunch of niche channels that ride the coattails of ESPN, TNT, TBS, USA, Disney, and Fox News.The subscription fees for the top 10 channels comes out at a total of about $15. Fifteen dollars! That means we're paying for $50-75 for crap that we don't watch.Of course subscription fees matter and ESPN will continue to tighten the belt, but even if ESPN2 and ESPNU disappear completely, ESPN has ABC as an outlet, plus ESPN3 and WatchESPN. But the more likely scenario is that ESPN (and TNT, Fox News, etc.) actually increase their share of the money that subscribers pay.As ESPN continues to own the majority of quality live sports programming, they will continue to drive the bus - whether its through subscriptions, ABC, online or on demand. Link to comment Share on other sites More sharing options...
PCS Posted July 16, 2015 Share Posted July 16, 2015 The Wall Street Journal's piece,(that this one linked to),on this is a longer,but better read I believe. http://www.wsj.com/article_email/espn-tightens-its-belt-as-pressure-on-it-mounts-1436485852-lMyQjAxMTA1MjEzMDkxMjAwWj Link to comment Share on other sites More sharing options...
MattFancy Posted July 16, 2015 Share Posted July 16, 2015 Another good read: As cord cutters grow, ESPN reaches a crossroad on costs Link to comment Share on other sites More sharing options...
ixcuincle Posted July 16, 2015 Share Posted July 16, 2015 No One watches or listens to what those imbeciles have to say. Everyone is podcasting now Link to comment Share on other sites More sharing options...
Destino Posted July 16, 2015 Share Posted July 16, 2015 I'd love if cable just let me pick my channels so that I could get just a dozen or so, not sure I watch more than that to be honest. If they did, contrary to the sentiment in this thread, ESPN would certainly be one of them. So would foxsports1. What can I say, I'm a sports addict. FS1 has UFC fights, ESPN has basketball and football. Probably would never see ancient aliens again though. I'd survive. Link to comment Share on other sites More sharing options...
MattFancy Posted July 16, 2015 Share Posted July 16, 2015 Just saw Cowherd is leaving. Love them or hate them, ESPN has lost 3 big personalities in the last couple of months: Simmons, Olberman and now Cowherd. Link to comment Share on other sites More sharing options...
ixcuincle Posted July 16, 2015 Share Posted July 16, 2015 Good riddance Terrible troll Link to comment Share on other sites More sharing options...
MattFancy Posted July 16, 2015 Share Posted July 16, 2015 Good riddance Terrible troll Not sad to see him go, but that's 3 big names now that have left there. Link to comment Share on other sites More sharing options...
ixcuincle Posted July 16, 2015 Share Posted July 16, 2015 Just saw Cowherd is leaving. ESPN has lost 3 big personalities in the last couple of months: Simmons, Olberman and now Cowherd. So basically no one will watch espn. Good riddance to cowherd. He was a terrible troll and very irritating. All he would do is mock dead athletes or steal intellectual property. He was a terrible radio host and personality on espn. He was one of the worst media personalities and a perfect example of the dying sports talk industry. Good riddance to this classless trash bag You know when Sean Taylor passed this idiot called him a thug and criminal on air? Link to comment Share on other sites More sharing options...
zoony Posted July 16, 2015 Share Posted July 16, 2015 Everybody always says they hate espn. Meanwhile they consistently get the highest ratings Either a lot of liars or a lot of liars. Not sure which Link to comment Share on other sites More sharing options...
ixcuincle Posted July 16, 2015 Share Posted July 16, 2015 http://thebiglead.com/2015/07/16/colin-cowherd-leaving-espn-whats-next/ Cowherd recently expressed some of his thoughts about the future of radio on the About Sports Radio podcast with Zach McCrite, which could give a hint as to where his show will land, and how it could change his pay structure: “In the next 5-10 years, I don’t even think they’ll have radios in cars. I think podcast and digital and Sirius is the future. I think terrestrial — AM especially — is done in five years.” Link to comment Share on other sites More sharing options...
Larry Posted July 16, 2015 Share Posted July 16, 2015 Everybody always says they hate espn. Meanwhile they consistently get the highest ratings Either a lot of liars or a lot of liars. Not sure which Nobody goes to that restaurant any more. It's always too crowded. - Yogi Berra Link to comment Share on other sites More sharing options...
Lombardi's_kid_brother Posted July 16, 2015 Share Posted July 16, 2015 Everybody always says they hate espn. Meanwhile they consistently get the highest ratings Either a lot of liars or a lot of liars. Not sure which If there is a bubble it's not at ESPN, it's in sports rights fees. Everyone is spending a fortune on rights' fees because live sporting events are literally the only thing left you can sell advertising on. It's the only thing that delivers reasonably big ratings to a captive audience. At some point, though, there's going to be a change in how advertisers think or someone is going to move to an a la carte type cable concept and it's all going to tumble down. ESPN will be hit, obviously, but they are so huge that they will still be the most powerful force in sports when it's over. Everyone ****es about ESPN, but 90 percent of us would pay $10 a month for Monday Night Football. Link to comment Share on other sites More sharing options...
MattFancy Posted July 16, 2015 Share Posted July 16, 2015 Everybody always says they hate espn. Meanwhile they consistently get the highest ratings Either a lot of liars or a lot of liars. Not sure which I'll watch the games, but that's really about it. I'll catch a SportsCenter every now and then, but my TV isn't on ESPN 24/7 like it used to. Link to comment Share on other sites More sharing options...
Larry Posted July 16, 2015 Share Posted July 16, 2015 Well, I notice a pattern in the folks complaining about ESPN. They're complaining about ESPN's filler material. The Cowherds and the SportsCenters and things like that. But that's not why people pay for ESPN. They pay for the live sporting events. For 5-6 college football games every Saturday. For the NBA and MLB. That's what ESPN spends Big Bucks for. And that's what audiences spend Big Bucks for. Link to comment Share on other sites More sharing options...
ixcuincle Posted July 16, 2015 Share Posted July 16, 2015 Exactly. We watch for the games. So we'll still pay because they dominate the sports world. Once other companies take rights and people have less incentive to watch then espn will die, but espn is buying the nba and this country is obsessed with that league so I think you take the nba from espn and they'll suffer a massive hit but it'll never happen Link to comment Share on other sites More sharing options...
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