4 ms·

ESPN's premium video offerings require a subscription (whether it's traditional cable or something new, like Sling), so at least 50% of what you said is just wr

by Gorbzel 11y ago

ESPN's premium video offerings require a subscription (whether it's traditional cable or something new, like Sling), so at least 50% of what you said is just wrong. As for the other half, it seems as if you are implying ESPN has done something wrong aggressively pricing their content and live programming offerings...which is also wrong. For some reason cord cutters believe that disparaging content providers they don't personally enjoy is productive, but these are the parties with both a) the leverage and b) the most to lose by challenging cable companies and other traditional media gatekeepers. They deserve consumer recognition for their efforts, and despite having problems like any other monolith, I support the Worldwide Leader.

exelius 11y ago
I dunno, I think ESPN's business model falls apart if they can't force ESPN down everyone's throats. ESPN would cost ~$12/mo if they weren't able to force-bundle it with the cable bundle, and I don't know how many of their viewers would pay that. Certainly some would pay more, but for hardcore sports nerds, ESPN is almost too pedestrian. I think we'll see ESPN fall hard in the next few years -- the gap between hardcore sports fans and casual sports fans is growing rapidly (this is more a function of daily fantasy than anything else; so it's a trend largely independent of media diversification).
- mitchty 11y ago
  ESPN has huge issues lately. They've lost over 4 million subscribers and are cutting jobs. http://www.foxsports.com/college-football/outkick-the-coverage/is-espn-a-giant-bubble-about-to-burst-071215 http://www.foxsports.com/college-football/outkick-the-covera... If only everyone realized that if you subscribe to cable, you're paying for about $6.61/mo for espn to be on your bundle. This is for everyone, not just the sports fans. I read somewhere that espn alone if only paid by fans would come out to about $34/mo Which if true really throws a wrench into the sports world. If they keep losing viewers there will be an interesting situation regarding advertisements. Honestly I can only hope, the only reason I have cable tv is so that comcast can still count me as a viewer with their "your bill will be cheaper if you just get a basic package" bs.
  - exelius 11y ago
    > Honestly I can only hope, the only reason I have cable tv is so that comcast can still count me as a viewer with their "your bill will be cheaper if you just get a basic package" bs. Look for that to disappear in the next few years. Cable companies have traditionally been ruled by the video business unit, but they're starting to realize that of the $120/mo triple play, consumers only value the video service at about $30-40/mo. That's more than it costs in licensing fees - so it would be a better profit move to charge $70-80/mo for straight Internet access. They're increasingly willing to sacrifice low-margin (with relatively high marginal cost) video revenue for high-margin broadband revenue. I've always wondered why the cable companies haven't partnered with Netflix to sell subscriptions. Give the cable companies a cut in exchange for interconnects and cross-promotion. If Comcast were to offer a $100/mo Internet + Netflix + HBO bundle, it would sell like hotcakes. Also, remember that the target customer for a cable company is a 50-year-old head of household. While "cord nevers" will be a drain on revenue in the future, big cable is still making a good profit targeting people who are far behind the technology curve.

by Gorbzel 11y ago

exelius 11y ago

I dunno, I think ESPN's business model falls apart if they can't force ESPN down everyone's throats. ESPN would cost ~$12/mo if they weren't able to force-bundle it with the cable bundle, and I don't know how many of their viewers would pay that. Certainly some would pay more, but for hardcore sports nerds, ESPN is almost too pedestrian. I think we'll see ESPN fall hard in the next few years -- the gap between hardcore sports fans and casual sports fans is growing rapidly (this is more a function of daily fantasy than anything else; so it's a trend largely independent of media diversification).

mitchty 11y ago
ESPN has huge issues lately. They've lost over 4 million subscribers and are cutting jobs. http://www.foxsports.com/college-football/outkick-the-coverage/is-espn-a-giant-bubble-about-to-burst-071215 http://www.foxsports.com/college-football/outkick-the-covera... If only everyone realized that if you subscribe to cable, you're paying for about $6.61/mo for espn to be on your bundle. This is for everyone, not just the sports fans. I read somewhere that espn alone if only paid by fans would come out to about $34/mo Which if true really throws a wrench into the sports world. If they keep losing viewers there will be an interesting situation regarding advertisements. Honestly I can only hope, the only reason I have cable tv is so that comcast can still count me as a viewer with their "your bill will be cheaper if you just get a basic package" bs.
- exelius 11y ago
  > Honestly I can only hope, the only reason I have cable tv is so that comcast can still count me as a viewer with their "your bill will be cheaper if you just get a basic package" bs. Look for that to disappear in the next few years. Cable companies have traditionally been ruled by the video business unit, but they're starting to realize that of the $120/mo triple play, consumers only value the video service at about $30-40/mo. That's more than it costs in licensing fees - so it would be a better profit move to charge $70-80/mo for straight Internet access. They're increasingly willing to sacrifice low-margin (with relatively high marginal cost) video revenue for high-margin broadband revenue. I've always wondered why the cable companies haven't partnered with Netflix to sell subscriptions. Give the cable companies a cut in exchange for interconnects and cross-promotion. If Comcast were to offer a $100/mo Internet + Netflix + HBO bundle, it would sell like hotcakes. Also, remember that the target customer for a cable company is a 50-year-old head of household. While "cord nevers" will be a drain on revenue in the future, big cable is still making a good profit targeting people who are far behind the technology curve.