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I worked at ESPN from 2002-2005. ESPN execs have been aware of the problem since at least that long ago. Subscriber fees are where ESPN makes most of its mone

by kareemm 10y ago

I worked at ESPN from 2002-2005. ESPN execs have been aware of the problem since at least that long ago. Subscriber fees are where ESPN makes most of its money, so the execs have been understandably loathe to cut the cord. Even back in 2004 the goal was to drive more cable subs and more revenue per cable sub because the revenue dwarfed what they could make online (IIRC ESPN.com made ~$60M top line in 2004. Not even a drop in the bucket compared to revenue from cable subscribers). Strategically ESPN is in a difficult position. They provide distribution to content providers (the leagues) in an era when the price of distribution is approaching zero. Which is why you see MLB, NFL, etc going straight to consumer over the internet with their own offerings. The importance of TV distribution is diminishing, which leaves ESPN with no content (they've never really been a content company) and no distribution. Interesting times, indeed.

jknoepfler 10y ago
It's always interesting to hear what's going on inside a company like ESPN. Companies seem to spring up organically around their original revenue source, so having to re-purpose your machine to create a new one must be a very interesting challenge.
thomasthomas 10y ago
they've never really been a content company you changed my perspective with this comment.youre so right. essentially everything espn creates to fill time between live events is garbage. only issue for leagues distributing content themselves is local/regional tv contracts are a huge source of revenue for most teams. Tv is still the path of least resistance to consuming content. local deals might not be as lucrative if not on Tv. customers in a given region might not be 'stumbling' onto a local game to watch as often if the game isnt on a tv channel
- selimthegrim 10y ago
  The one time they had an interesting show (Playmakers), the NFL twisted their arm to cancel it.

by kareemm 10y ago

jknoepfler 10y ago

It's always interesting to hear what's going on inside a company like ESPN. Companies seem to spring up organically around their original revenue source, so having to re-purpose your machine to create a new one must be a very interesting challenge.

thomasthomas 10y ago

they've never really been a content company you changed my perspective with this comment.youre so right. essentially everything espn creates to fill time between live events is garbage. only issue for leagues distributing content themselves is local/regional tv contracts are a huge source of revenue for most teams. Tv is still the path of least resistance to consuming content. local deals might not be as lucrative if not on Tv. customers in a given region might not be 'stumbling' onto a local game to watch as often if the game isnt on a tv channel

selimthegrim 10y ago
The one time they had an interesting show (Playmakers), the NFL twisted their arm to cancel it.