ESPN Cutting Costs

sam_gordon

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May 21, 2009
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http://www.washingtonpost.com/blogs...-is-making-espn-do-some-serious-cost-cutting/

Despite holding the television rights to nearly every sport that anyone wants to watch, ESPN apparently is not the cash cow that it once was for parent company Disney, which reportedly is demanding that the all-sports network slash its budget over the next two years.
The Wall Street Journal reported Thursday that ESPN has lost 3.2 million subscribers in more than a year and that ESPN’s reach in U.S. households has fallen 7.2 percent since 2011.
 
Disney is a well run, notirioulsy cost aversive company who make cuts far before most companies would and stay highly profitiable because of its financial thumbscrews. In part, this about saturation: at some point it becomes so much money to get these rights that it exceeds profits. However, if we can accept play by play from thousands of miles away and other cost cutting, ESPN could actually see better profits. Yes, the big teams gettng their one channels, etc. and some cord cutting and the leagues allowing access to games via internet/mobile device all have some affect to such games no longer being truly exclusive and ONLY on ESPN or other tradiditonal TV channels, and that hurts the value of the games to entities like ESPN with losing viewers as one effect.

But, I wonder: it seems to me that the Mellinials aren't very interested in watching sports as previous generations. This and subsequent generations seem to spend more time on video games and at ComiCON and Anamie conventions than following any of the major or college sports. Is the market for sports broadcasting shrinnking because of changing interests for the younger generation? Or is it, perhaps, just the WRONG sports because it seems soccor/football is increasing in popularaity in the US and NOT among immigrants, but from those born in the USA with generations before it born in the USA, as well. These new fans of soccor did play it as kids, but often did not follow up playing other more tradtional sports at USA junior and high schools.

I just think the times are a changing and Disney is smart to rein in the costs far before it is too late. If we all live another 30 years, we may not recognize this planet at all.
 
Honestly If you don't have a piece of the football and soccer pie you're not going to have a good time moving forward. Hockey is too niche, baseball is boring and very older skewing, and the NBA is too predictable. College basketball is somewhere in the middle and all depends if the NCAA lets the P(outing)5 screw up a good thing or not.

I'm honesty surprised CBSSN hasn't tried to buy soccer rights.


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Super Bowl will be on locals throughout my lifetime. It is still the highest rated show, consistently, year after year and still commands $1M for commercials(can't remember if 30 seconds or 1 minute, but still rediciulous.) This may change in the future, but guaranteed to be there for atleast the rest of our natural lives.
 
This and subsequent generations seem to spend more time on video games and at ComiCON and Anamie conventions than following any of the major or college sports.
I'm not sure about that. I think the younger generations are more interested in THEIR team and will find some way to watch them instead of watching an Alabama/Auburn football game (for example). So they're watching a TEAM instead of a SPORT. With more and more games being televised, that gives them the option to do that.
 
I have always watched team first, sport second.

I think it comes down to ESPN overspending and somewhat offering programming equal to TMZ at times. While fans are a bit rabid, many are well informed and do not need shows that are all about driving ratings, it's pretty insulting at times and some of the bobbleheads they employ are embarrassing to their brand.

I ONLY turn on any ESPN now when a game is on I want to watch. That is a big change from me 10 years ago.
 
I'm not sure about that. I think the younger generations are more interested in THEIR team and will find some way to watch them instead of watching an Alabama/Auburn football game (for example). So they're watching a TEAM instead of a SPORT. With more and more games being televised, that gives them the option to do that.

I work with high schoolers and this is very true. And it would be a very specific team of a specific sport. Being just west of Chicago, it isn't all Bears, Bulls, Blackhawks, Cubs, and White Sox - a lot of times it is college teams of where their parents went. Back when I was younger, I didn't have cable, and even if I did, the number of games televised isn't what it is now. You didn't have the constant connection to highlights and what was going on. So I remember that I would watch the national NBA game every week, even though it wasn't the Bulls. Or whatever SEC game CBS was showing. There was no Big 10 Network so I could catch the local games. So I agree with this 100% - the next generation is interested in sports, just very specific teams. And if they are in front of a TV, they will only watch that specific team. Actually, I find myself doing that more now as well, so maybe we are all over-saturated with options.

The other big thing I think has made a difference with this next generation is the smart phone and mobile networks. They like the instant gratification and multitasking. And with the ESPN App where notifications can get sent to your phone and then watch a video of the highlight a couple seconds after it happens, they don't have to be watching TV to be connected - they can be hanging out with friends, get every scoring or big play and know exactly what is going on. 10 years ago, that wasn't the case at all - you had to be at the TV or at least sitting at your computer connected to your DSL line to watch the highlights.
 
Super Bowl will be on locals throughout my lifetime. It is still the highest rated show, consistently, year after year and still commands $1M for commercials(can't remember if 30 seconds or 1 minute, but still rediciulous.) This may change in the future, but guaranteed to be there for atleast the rest of our natural lives.
We have to have local channels..they have sold most of those frequencies
 
Honestly If you don't have a piece of the football and soccer pie you're not going to have a good time moving forward. Hockey is too niche, baseball is boring and very older skewing, and the NBA is too predictable. College basketball is somewhere in the middle and all depends if the NCAA lets the P(outing)5 screw up a good thing or not.

I'm honesty surprised CBSSN hasn't tried to buy soccer rights.


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The problem is nobody "plays" sports anymore. Soccer us an overated second class sport that the majority of tv sports watchers could care less about no matter how hard they push it
 
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The problem is nobody "plays" sports anymore. Soccer us an overated second class sport that the majority of tv sports watchers could care less about no matter how hard they push it

I don't know about in Moscow Russia where you are, but everywhere I go people are still playing sports. Little league baseball, football, soccer is more alive than ever. High school football, baseball, basketball, soccer, golf, softball are all alive with healthy participation. Many towns and cities have adult softball, golf, and soccer associations.

Nobody watches soccer? The recent womens world cup soccer final drew a larger audience than any of the NBA finals games, over 25 million viewers in the US.

I think you are full of it.
 
I don't know about in Moscow Russia where you are, but everywhere I go people are still playing sports. Little league baseball, football, soccer is more alive than ever. High school football, baseball, basketball, soccer, golf, softball are all alive with healthy participation. Many towns and cities have adult softball, golf, and soccer associations.

Nobody watches soccer? The recent womens world cup soccer final drew a larger audience than any of the NBA finals games, over 25 million viewers in the US.

I think you are full of it.
Really?..my point was back in the day we all played sports all day all night..most kids play video games more than bike riding,baseball and the rest. I really think those soccer numbers are over estimated because pro soccer always fails no matter how hard they push it
 
Kids do not watch sports as they did in the past or as those of us older tend to do. I also think it is being misinterpreted about following a team not the sport. Yes, to some degree that has happened but I contend what DishSubLA said still applies. While they may tend to follow more their team and not the sport, they still aren't watching them as much. They watch highlights (often on their mobile device or computer) watch the big games, and buy merchandise. But I do not see where they are as entrenched to actually watch the the game or whole game as pasts generations may have been. Of course there are still plenty of exceptions, and your location in the Country plays a part. Kids still follow the Red Sox more than some in other parts of the Country follow their baseball team as an example.
 
Really?..my point was back in the day we all played sports all day all night..most kids play video games more than bike riding,baseball and the rest. I really think those soccer numbers are over estimated because pro soccer always fails no matter how hard they push it
So then you must doubt all ratings numbers for all shows since the same metrics were used in compiling the soccer numbers you doubt.

As for pro soccer failing, I think it's a lack of quality of product. The teams in the U.S. are minor league caliber compared to their European and South American counterparts. Put compelling, competitive teams on the field and people will come out and watch. Otherwise, they'll just stay at home and watch better quality teams from other countries play. If the U.S. Teams ever up the quality level and become a destination for top tier talent (rather than talent past their prime that would have otherwise retired) then you'll see the fan base come out.
 
So then you must doubt all ratings numbers for all shows since the same metrics were used in compiling the soccer numbers you doubt.

As for pro soccer failing, I think it's a lack of quality of product. The teams in the U.S. are minor league caliber compared to their European and South American counterparts. Put compelling, competitive teams on the field and people will come out and watch. Otherwise, they'll just stay at home and watch better quality teams from other countries play. If the U.S. Teams ever up the quality level and become a destination for top tier talent (rather than talent past their prime that would have otherwise retired) then you'll see the fan base come out.
They we're watching an event not soccer..let me put it this way. .the major sports don't want soccer to succed
 
With regards to soccer, I think it has made great strides in America over the past 50 years. It takes time to ingrain a sport into the American daily life.

As a child in the 50's and 60's I had never heard of soccer. In the 80's and 90's I played both recreational and competitive soccer. Every town of any size I've been to in my many travels across the USA has had a youth soccer league, and many have adult soccer leagues. Most high schools and colleges now have soccer teams.

Does soccer enjoy the same popularity as Football, basketball, or even baseball? No, but look at the history of those sports when comparing. Each of those sports has been a part of the American experience for well over 125 years.

I will agree that soccer is a much better participant sport than spectator sport, but the more people get involved at the playing level the more they will want to watch the higher level of competition.

JMO
 
I think one of the biggest problems with TV soccer is that the ref's control the clock..the clock on the scoreboard is not the official time. The whole red card/yellow card thing is very confusing to the casual viewer..no clear rules on who gets what..its at the ref's discretion.Sometimes teams get to play well past the time on the scoreboard others tend to get screwed.
 

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