Next BIG tv deal

[Roy_Faulker]

YAHOO article on the impact of cord cutting on ESPN profits. Wonder how much of this is clever accounting to put downward pressure on future tv contracts at ESPN/ABC including the BIG.

HTTPS://ca.finance.yahoo.com/news/star-wars-lends-force-disneys-revenue-212733680--sector.html

 

[eceres]

Interesting - I have been concerned for a while 2017 might be to late to hit the peak on contract value. The thread on here discussing it last year wasn't concerned. People pointed out nba's last contract and that live sports is the killer content to not cord cut. ESPN has been getting rid of some expensive on air talent.

 

[sherrane]

The impact on ABC is likely more important than ESPN. Cable channel revenues are boosted by carriage fees. While revenue for commercials is important (and driven by the demographic that is most likely to cut the cord), it is critical for networks like ABC, CBS, NBC, FOX, etc.

This is the quote that the B1G should throw back in their face when (if?) they use the content of this story in negotiations, "I actually believe that this notion that either the expanded basic bundle is experiencing its demise, or that ESPN is cratering in any way from a subscriber perspective is just ridiculous. Sports is too popular," (Walt Disney Chief Executive Bob) Iger told analysts on a conference call after the earnings announcement."

 

[srru86]

Things are changing but I think there are a few different things going on here.

Will ESPN be able to get as much gravy as they have in the past, No.

But the idea that we are all going to cut the cord tomorrow and get limitless content for free is getting to be like the prediction of a flying car.

NY Times June 2015
How Television Won the Internet
Hollywood Reporter October 2015
Yahoo Wants More Live Sports Following $20 Million NFL Streaming Bet
Even this time with a more gloom and doom ESPN sky is falling points out it is a glut of uninteresting sports, people want to watch premiere stuff. Is that B1G football? I'd say yes.
Bloomberg
Live Sports No Longer TV’s Holy Grail in U.S. as Ratings Peak

 

[Knight Shift]

Things are changing but I think there are a few different things going on here.

Will ESPN be able to get as much gravy as they have in the past, No.

But the idea that we are all going to cut the cord tomorrow and get limitless content for free is getting to be like the prediction of a flying car.

Be careful there. I once made an argument for a work-related matter about flying cars, and the person on the other side came back with this:
http://www.terrafugia.com/


The advent of 70" and larger TVs may help pump up the TV market a bit. Many people prefer to stay in the comfort of their home and watch the game on a really big screen. Watching a football game on a tablet or computer screen is not very enjoyable.
And at a certain point, networks like the BTN may go the direct subscriber route. Net-net, there are still a lot of $ to be made.

 

[TheB1GTerp]

YAHOO article on the impact of cord cutting on ESPN profits. Wonder how much of this is clever accounting to put downward pressure on future tv contracts at ESPN/ABC including the BIG.

HTTPS://ca.finance.yahoo.com/news/star-wars-lends-force-disneys-revenue-212733680--sector.html

I have written on this many times. The B1G is too big to ignore, and ESPN cutting fat isn't going to cut into the meat of the B1G contract. ESPN without the B1G is a in a lot of trouble. I expect CBS/Fox/ESPN all to share tier 1 rights form that B1G contract.

People are changing the medium of how they get content. They are not halting their viewing. The costs will shift from soley cable, to stand alone platforms, pay for services, direct advertising, etc.

 

[PhDKnight]

I have written on this many times. The B1G is too big to ignore, and ESPN cutting fat isn't going to cut into the meat of the B1G contract. ESPN without the B1G is a in a lot of trouble. I expect CBS/Fox/ESPN all to share tier 1 rights form that B1G contract.

People are changing the medium of how they get content. They are not halting their viewing. The costs will shift from soley cable, to stand alone platforms, pay for services, direct advertising, etc.

This is a great point. People are not consuming less live sports. They are simply consuming it in ways that the ratings systems are not set up to track. I can tell you living in NYC and SoCal that everyone under 40 without kids in these areas consume football at packed restaurants and bars, for instance, not at home.

I have kids and half the time even we will go out to a restaurant thats not too rowdy to watch the games as well.

 

[rurichdog]

Perhaps ESPN's problem is they are buying up too many "properties" than they can afford, but they can't let other networks in on the deals because that's considered "losing". It's like buying 5 houses and then trying to patch the holes in your balance sheet by having a garage sale.

 

[srru86]

http://www.terrafugia.com/

View embedded media

Cool.

 

[Nosoj]

Even this time with a more gloom and doom ESPN sky is falling points out it is a glut of uninteresting sports, people want to watch premiere stuff. Is that B1G football? I'd say yes.
Bloomberg
Live Sports No Longer TV’s Holy Grail in U.S. as Ratings Peak

They quote ratings down for 2014 vs. 2013, however:

The final viewership numbers for the NFL’s regular season arrived this week and the Sunday packages (NBC, CBS, Fox) were all up over last year. Same with the Thursday night package across CBS and NFL Network. Of the five NFL television rights holders, ESPN was the only partner with a decline for game viewership, dropping for the second straight year. But that’s likely due to cord-cutting as opposed to a statement on viewer popularity.

http://www.si.com/more-sports/2016/01/10/media-circus-nfl-playoff-ratings-espn-nbc-cbs

And yes, they will still pay for premier content and the B1G is premier content. It'll be a split agreement with Fox and ABC/ESPN likely partnering for the rights.

 

[czxqa]

Be careful there. I once made an argument for a work-related matter about flying cars, and the person on the other side came back with this:
http://www.terrafugia.com/

View embedded media

Does that thing need a Mr. Fusion to run?

 

[FanuSanu52]

Be careful there. I once made an argument for a work-related matter about flying cars, and the person on the other side came back with this:
http://www.terrafugia.com/

View embedded media

The advent of 70" and larger TVs may help pump up the TV market a bit. Many people prefer to stay in the comfort of their home and watch the game on a really big screen. Watching a football game on a tablet or computer screen is not very enjoyable.
And at a certain point, networks like the BTN may go the direct subscriber route. Net-net, there are still a lot of $ to be made.

Was going to post something like the terrafugia, but you beat me there!

The Aeromobil would also have worked, although the last news about that one was that the prototype crashed .. not a great sign.

 

[rutger80]

Was going to post something like the terrafugia, but you beat me there!

The Aeromobil would also have worked, although the last news about that one was that the prototype crashed .. not a great sign.

"Roads? Where we're going, we don't need roads."