Or longer advertisement breaks during games...
The problem is that advertises are not going to be willing to pay near as much as they are for a dying industry. At some point, that bubble will burst as well.
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Or longer advertisement breaks during games...
You would think that couldn't get any worse, but it sure seems to.
You're correct, but not all of their additional channels are. I guess I assumed that would hit ESPN harder than other channels.ESPN is on basic cable. So unless I'm missing something these numbers are more or less the same as saying "Cable companies lost XXX,XXX" subscribers last month. Which implies that TBS/TNT and everybody else lost the same number of subscribers. ESPN is just the one hit the worst since so much of their revenue comes from subscriber fees.
This is a fascinating read on the dire situation facing ESPN.
http://www.outkickthecoverage.com/espn-loses-another-555-000-subscribers-per-nielsen-112916
Shorter version:
- Lost over 1 million subscribers in last two months.
- Within 5 years, ESPN's subscriber revenue will not be enough to pay coverage rights.
- Network TV (ie: free over the air) could regain prominence in sports landscape.
For consumers, this is actually great news. But if you extrapolate this to the wider implications, it means we have already reached "peak sports revenue" in a way and revenue going forward may be going down for EVERYONE (this would include college conferences and schools like ISU btw).
ESPN is on basic cable. So unless I'm missing something these numbers are more or less the same as saying "Cable companies lost XXX,XXX" subscribers last month. Which implies that TBS/TNT and everybody else lost the same number of subscribers. ESPN is just the one hit the worst since so much of their revenue comes from subscriber fees.
A lot of the cable and satellite companies are now offering packages with some of the better non sports channels (TBS/FX/AMC/Etc). Some of it is migration to these packages.
I'm curious to see to see what Q1 looks like next year. If they lost 1 million subs in Oct/Nov, what's going to happen when football season is over?
It sounds like they accounted for that ( although this quote is a bit vague)But if you subtract the cable subscriptions don't you have to add the streaming subscriptions through sling, VUE, or direct now? How much of this is actual loss vs a transition.
Now, to be fair, ESPN fought Nielsen's latest channel estimates last month and argued that those estimates failed to count the number of over-the-top subscribers the company has, but Nielsen reviewed their data and confirmed its findings, much to ESPN's public dismay. Furthermore, there's nothing preventing ESPN from revealing its subscriber data publicly. What's more, ESPN cited Nielsen's own subscriber estimates in its most recent 10k filing last week. If the subscriber numbers were that far off would you cite them in your own public releases for the Securities and Exchange Commission? That seems unlikely.
Isn't Amazon in talks with the NBA, NFL, ACC, etc for rights?
Didn't see the Big 12 on the list but why would I expect the conference to be proactive
I wonder what impact this has on the Big Ten Network payouts? I'm assuming there were assumptions made about subscription growth that might end up not being accurate.
It'd be great if, when all is said and done, the Rutgers addition ends up actually costing them money.
But if you subtract the cable subscriptions don't you have to add the streaming subscriptions through sling, VUE, or direct now? How much of this is actual loss vs a transition.
This is a fascinating read on the dire situation facing ESPN.
http://www.outkickthecoverage.com/espn-loses-another-555-000-subscribers-per-nielsen-112916
Shorter version:
- Lost over 1 million subscribers in last two months.
- Within 5 years, ESPN's subscriber revenue will not be enough to pay coverage rights.
- Network TV (ie: free over the air) could regain prominence in sports landscape.
For consumers, this is actually great news. But if you extrapolate this to the wider implications, it means we have already reached "peak sports revenue" in a way and revenue going forward may be going down for EVERYONE (this would include college conferences and schools like ISU btw).
So glad we are a "have" right now... When the next conference shake up happens the conference alignment might not matter as much as a rabid fan base.
If I'm honest I really think that this is beneficial for schools like Iowa State. We don't have the big metropolitan areas to dictate the tv discussion but we do have a large passionate fan base. I honestly think ESPNs biggest issue is their decision to cover the more popular things all the time. Even in the past few years it is really gone downhill. I never watch it anymore except for live sports. A couple years ago you could find select college programs. That isn't there anymore.