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Replies: 22
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110%er [7241]
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OT: How Is ESPN going broke? Or Dying?
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Jul 14, 2023, 6:14 PM
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I've seen many posts about ESPN struggling. I saw that they laid off a bunch of their personalities.
Even saw someone suggest; ESPN would be going away.
What have I missed, then?
Because advertisers are still paying for marketing on events that many eyeballs will be watching. Coaches and players are making "STUPID" amounts of money. Heck, the "amateur" players are now getting NIL deals because the sport(s) have become so big.
How then is the self-proclaimed(but really they probably are) "worldwide leader" struggling and looking at budget cuts and the like?
I feel like I am missing a huge chunk of information and I need someone to break it down to me, please!
Thanks!
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110%er [6360]
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Cord Cutting***
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Jul 14, 2023, 6:16 PM
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110%er [7241]
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Re: Cord Cutting***
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Jul 14, 2023, 6:21 PM
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I thought about that.
But, I cut the cord too, but within that package, I have with my streaming device ESPN is included. So, I would think, they don't care who broadcasts their content as long as it's broadcast.
Marketing firms and companies basically pay ESPN for the right to advertise while they broadcast a game.
Could be your right; though.
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Legend [19796]
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A huge hunk of their revenue comes from the fees they
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Jul 14, 2023, 8:15 PM
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receive from cable and satellite companies, not advertising. Which is why cable and satellite charges continue to rise as these networks need the networks for people to watch them, and the fees are going up to cover the loss of subscribers, and so people cut the cord. Many times you can find bootlegs of games streaming meaning people don't even have to pay YouTube and the likes to watch. Then throw in that people are not watching sports as they used to. NBA and baseball ratings are in the tank. That hurts advertising dollars. Hardly anyone watches their non-game programming due to the politization of things. Disney is losing billions compared to past profits and is now looking to sell off a portion of ESPN. Like many corporations, they are finding that when you quit focusing on the main thing, people begin to stop buying your product.
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110%er [7405]
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Re: A huge hunk of their revenue comes from the fees they
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Jul 14, 2023, 9:59 PM
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Disney’s movie business is losing big money.
Combined with ESPN’s poor business performance (paid too much for MLB rights and NBA rights, both of which have had much lower viewer attractiveness than they had anticipated) May signal a strategy shift for Disney.
Disney’s hotel and conference center business had been very strong. Don’t know the short term outlook; lots of private companies are cutting their budget for non-customer related business expenses. This will lead to reduced demand for convention center business.
I don’t know if Disney’s theme park business has fallen off too much yet, despite the growing political and sociological controversies associated with their theme parks.
Overall, Disney is near certain to report much weaker than expected financial results for the end of this current fiscal year. Divestitures of selected businesses are not uncommon for big companies when dealing with problems like Disney is having.
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CU Medallion [58422]
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shoveling too much cash to the SEC.***
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Jul 14, 2023, 6:17 PM
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110%er [7241]
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Re: shoveling too much cash to the SEC.***
Jul 14, 2023, 6:22 PM
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Ha! Probably right!
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All-TigerNet [10925]
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No doubt that's a big part of it. And paying marginal talent
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Jul 14, 2023, 8:26 PM
[ in reply to shoveling too much cash to the SEC.*** ] |
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like McAfee and Stephen A ridiculous amounts of money!
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Orange Blooded [4943]
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Re: OT: How Is ESPN going broke? Or Dying?
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Jul 14, 2023, 6:28 PM
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They are on the hook to pay billions to air various sports leagues. Unfortunately they aren't making enough back from advertisers to cover the amounts they are having to pay. Sure the leagues and players are still doing well but if something doesn't change eventually the supply of endless cash is going to end.
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110%er [7241]
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Re: OT: How Is ESPN going broke? Or Dying?
Jul 14, 2023, 6:38 PM
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They are on the hook to pay billions to air various sports leagues. Unfortunately they aren't making enough back from advertisers to cover the amounts they are having to pay. Sure the leagues and players are still doing well but if something doesn't change eventually the supply of endless cash is going to end.
OK. That makes sense to me. Thank You!
Wow!
Mis-management sounds like. Or somebody got greedy and over-zealous. As they say, their "eyes were bigger than their stomach"!
As I saw someone else post, I tend to agree as well. If they are trying to shave money, they will keep what's most profitable and dump what's not making as much money. It makes me wonder about the future of the ACCN.
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All-TigerNet [11210]
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Re: OT: How Is ESPN going broke? Or Dying?
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Jul 14, 2023, 7:43 PM
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No worries. The ACC has Raycom and the CW as a backup plan.
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Standout [309]
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Re: OT: How Is ESPN going broke? Or Dying?
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Jul 14, 2023, 7:06 PM
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It is simple, the supply chain.
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110%er [7241]
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Re: OT: How Is ESPN going broke? Or Dying?
Jul 14, 2023, 7:16 PM
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It is simple, the supply chain.
What of the supply chain?
Not following. Care to expand?
There are a zillion games to air and conferences willing to allow them to (for exposure).
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Scout Team [161]
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Re: OT: How Is ESPN going broke? Or Dying?
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Jul 14, 2023, 7:18 PM
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Everytime I watch espn I feel like they are just talking nba or lebron James. Nba doesn’t even have the ratings mlb has. It is real confusing to me. With so many cord cutters, ott advertising that appears on apps is highly relevant due to targeting and best use of ad dollars vs shotgun blasting ads across no relevant consumers. As someone that is in advertising I can tell you for certainty that if I say hey I can focus your commercials on streaming devices and hit only Clemson fans with a household of 3 kids to pitch your Clemson related product it is way more enticing to the marketer. This is not the case with espn ads and are typically corporate.
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110%er [7241]
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Re: OT: How Is ESPN going broke? Or Dying?
Jul 14, 2023, 8:04 PM
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Everytime I watch espn I feel like they are just talking nba or lebron James. Nba doesn’t even have the ratings mlb has. It is real confusing to me. With so many cord cutters, ott advertising that appears on apps is highly relevant due to targeting and best use of ad dollars vs shotgun blasting ads across no relevant consumers. As someone that is in advertising I can tell you for certainty that if I say hey I can focus your commercials on streaming devices and hit only Clemson fans with a household of 3 kids to pitch your Clemson related product it is way more enticing to the marketer. This is not the case with espn ads and are typically corporate.
Insightful point of view for sure. Thank you for that.
When you say it like that; it hits home. I get it now!
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Asst Coach [747]
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Re: OT: How Is ESPN going broke? Or Dying?
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Jul 14, 2023, 7:55 PM
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What’s that recent saying?? “Go woke, go broke!”…. espn has been heading that way for years. At least 5yrs ago, I got so that I couldn’t stomach Game Day. Was fun years back, not so much now. Just show the games.
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Rock Defender [54]
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Re: OT: How Is ESPN going broke? Or Dying?
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Jul 14, 2023, 7:58 PM
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Not sure. Don't care. I used to watch College football live, around the horn, baseball tonight, sports center, many programs on ESPNU exclusive to college football.
Now you literally cannot watch a show purely about highlights and analysis. And if it is, it's half the quality it was. I'm not screaming "omg liberals blah blah" I'm just saying the talking points seem to be about personalities, politics, everything besides what should be in the analysis. I get my sports news reading the sites I enjoy and watching YouTube now. Makes me sad. ESPN used to be on my TV from dusk till dawn to the point I would see the replay of SC 3 times.
That being said, SVP is my favorite "sports anchor" of all time. Still love that guy. And RIP Stuart Scott. I will probably be watching Fox for pregame coverage this year. They're boring and not a spectacle, but at least they talk ball at it's best we have available.
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All-In [31885]
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Re: OT: How Is ESPN going broke? Or Dying?
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Jul 14, 2023, 8:14 PM
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Yea cord cutting has nothing to do with it. Every platform I streamed had ESPN. The network has lost its way. They pay these conferences stupid money and their on air talent is horrible. Except for a game or golf I never even watch it anymore.
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110%er [8929]
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They’re not
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Jul 14, 2023, 8:18 PM
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ESPN is still very profitable; estimates from last year have their profit margin pegged at 25%. This is down from a peak of 41% 10 years ago but it’s still a ratio many other companies would love to have. If there is fat you cut it; they’ve determined that these on air personalities aren’t worth what they were being paid and the jobs could be done by cheaper talent.
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All-TigerNet [10697]
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I don't know all the reasons, but take this for example...
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Jul 14, 2023, 8:58 PM
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just about every night this week (including tonight where MLB is back from the break), they are showing NBA Summer League basketball. On their main channel, ESPN, not ESPN 2 or ESPN News. Now I may be wrong, but I just can't imagine too many people tuning in to watch NBA Summer League basketball???
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Orange Blooded [2972]
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Re: OT: How Is ESPN going broke? Or Dying?
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Jul 14, 2023, 8:58 PM
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Because they are owned by Disney! Disney decided it was more important to push LGBTQ+ him n all their companies and movies and amusement park. The public has stood up and told them they do not want that perversion but Disney pushes that even on ESPN. Therefore Go Woke Go Broke!
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Head Coach [760]
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Re: OT: How Is ESPN going broke? Or Dying?
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Jul 14, 2023, 9:35 PM
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Because their parent company "Disney" has lost a ton of money!! So Disney made huge cuts across the board & espn was cleaned up with them.
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110%er [6571]
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Re: OT: How Is ESPN going broke? Or Dying?
Jul 14, 2023, 11:48 PM
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Go woke, go broke!
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