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ESPN's future and the SEC Network money

Posted on 6/30/23 at 12:49 pm
Posted by SpartanSoul
Member since Aug 2016
885 posts
Posted on 6/30/23 at 12:49 pm
Curious of everyone's thoughts on the future of ESPN/the SEC Network contract and its effects on the athletic departments that have grown dependent on the money.

ESPN is no doubt in trouble, trying to cut costs and laying people off. Cable TV is shrinking faster and faster. There is talk of ESPN offering the full ESPN channel in its own streaming package. Several of the regional sports networks have declared bankruptcy or are in serious financial trouble. Hell look at how many on this board use “alternative means” to watch games. Most people that are subscriber seem to hate ESPN and only subscribe out of necessity. I'm sure the "alternative means" group grows larger by the day.

On top of this Disney is in general disarray. Do you think it will end up in a situation where ESPN is spunoff or ends up being forced to lower contract amounts in the future or even ends up in bankruptcy? I’m sure the financial problems were why ESPN didn’t want to pay extra for more conference games.

There will of course always be a market for SEC games but I wonder what the situation will be like in 5 years. The SEC Network money is the life blood of the schools’ athletic departments and any reduction /interruption would be painful. Hopefully the athletic department can build up a little cushion just in case.
Posted by BayouBengal99
Crowley
Member since Oct 2007
9124 posts
Posted on 6/30/23 at 1:06 pm to
I think if anything, a new conference network would emerge, leaving ESPN behind and starting their own TV network for the SEC and other sports.

Of course all it would take is for a real CEO or manager to come through ESPN and cut heads. Bring it back to its former self and stop being a network broadcasting political issues. Clean that part up and become a network for all peoples opinions on sports and sports only and it would survive. Might even rise to new ranks. If not, it will fail.
Posted by RayDaniel
Member since Jun 2023
155 posts
Posted on 6/30/23 at 1:12 pm to
I'd love a world where the sports I enjoy watching did not depend upon selling out to Disney/ESPN
Posted by Hot Carl
Prayers up for 3
Member since Dec 2005
59159 posts
Posted on 6/30/23 at 1:18 pm to
quote:

I think if anything, a new conference network would emerge, leaving ESPN behind and starting their own TV network for the SEC and other sports.


I didn’t like Sankey at 1st, but he’s proven very competent and forward thinking and has emerged as the most powerful man in college sports. There’s no way they don’t have a contingency plan in place in case ESPN can’t offer them what he knows they’re worth when the current contract ends. The SEC will be more than fine.
Posted by LSUvet72
Member since Sep 2013
12019 posts
Posted on 6/30/23 at 1:20 pm to
If only ESPN wasn't woke I would enjoy their coverage more.

Turn it off when they start their woke BS.

Posted by nino2469
Baton Rouge, LA
Member since Sep 2004
5526 posts
Posted on 6/30/23 at 1:20 pm to
From what I have read, ESPN is operating in the black, shareholders just want increased profits so they are making big cuts to the operating budget.
Posted by SpartanSoul
Member since Aug 2016
885 posts
Posted on 6/30/23 at 1:30 pm to
quote:

I think if anything, a new conference network would emerge, leaving ESPN behind and starting their own TV network for the SEC and other sports.


I wonder how the economics of that would work though. How many would sign up for it and much would people be willing to pay.
Posted by tiger94gop
GEISMAR
Member since Nov 2004
2916 posts
Posted on 6/30/23 at 1:34 pm to
ESPN live events makes money. Their non live programming doesn't. Disney can't afford to lose or sell ESPN, because it makes money. Several of their other holdings do not. If they went straight to streaming, they would make money, but not what they make from cable, who charges for it, even if you don't want it. I for one would drop Sling in a heartbeat if I could only stream live sports. I think they may offer a streaming option, but with only sports that wouldn't effect cable.
Posted by SpartanSoul
Member since Aug 2016
885 posts
Posted on 6/30/23 at 1:38 pm to
quote:

From what I have read, ESPN is operating in the black, shareholders just want increased profits so they are making big cuts to the operating budget.


It's not about now it's about the trajectory and the future. The trend has them shitting bricks.

ESPN gets somewhere around $9 a month from all cable/streaming subscribers(if there package has ESPN) even if they don't watch ESPN.

If the cable companies/streaming providers are able to force the unbundling of ESPN then they would only receive money from those who subscribe to it. Also as cordcutting in general progresses there are less subscribers and many who move to streaming are actively avoiding streaming packages with sports because they want lower prices.

And as to a separate streaming ESPN how many would pay for it year around? I think most would have it for the CFB months then drop it the rest of the year. The monthly cost would have to be very high to counteract the lost cable tv money.
Posted by SpartanSoul
Member since Aug 2016
885 posts
Posted on 6/30/23 at 1:44 pm to
quote:

I for one would drop Sling in a heartbeat if I could only stream live sports. I think they may offer a streaming option, but with only sports that wouldn't effect cable.



I think many would.

As for cable, it is dying at an increasing rate. Subscriber levels are at the 1980 levels and dropping fast.

The question is how much would you be willing to pay and how many months of the year would you subscribe.

I think the problem they would have is many would drop them for most of the year and the economics would make it hare if people only subscribe for 4-6 months a year.
Posted by doubleb
Baton Rouge
Member since Aug 2006
36057 posts
Posted on 6/30/23 at 1:45 pm to
The revenues from tv seemed to have peaked. The SEC may be late to the party. The Big Ten may have beat them to the punch.
Posted by TBoy@LSU
Member since Sep 2012
5488 posts
Posted on 6/30/23 at 1:56 pm to
Too much money involved for a solution not to be found if Disney/ESPN tanks.
Posted by BEATbama05
Benton, LA
Member since Oct 2008
680 posts
Posted on 6/30/23 at 2:00 pm to
Watching one of the CNBC morning shows yesterday they were discussing the amount of subscribers ESPN would need for it to succeed on its own through streaming. I don’t see it happening anytime soon.
Posted by doubleb
Baton Rouge
Member since Aug 2006
36057 posts
Posted on 6/30/23 at 2:03 pm to
quote:

Too much money involved for a solution not to be found if Disney/ESPN tanks.


Someone has to pay for tv rights. Previously Fox, ESPN and CBS all bid against each for shares of the market.

The colleges had leverage, but it seems now that ESPN is cutting costs there’s not as much money in plsy and the colleges have lost leverage.

Who will take their place if they keep cutting back?
Posted by ShadowTigerTX
Austin, Texas
Member since Jan 2016
320 posts
Posted on 6/30/23 at 2:03 pm to
quote:

And as to a separate streaming ESPN how many would pay for it year around? I think most would have it for the CFB months then drop it the rest of the year. The monthly cost would have to be very high to counteract the lost cable tv money.


I would pay for it year round for sure, because I watch more than college football (such as...baseball?) and I would love to drop my main streaming service (YouTubeTV) and save fifty bucks a month.
Posted by TNTigerman
James Island
Member since Sep 2012
10496 posts
Posted on 6/30/23 at 2:05 pm to
quote:

become a network for all peoples opinions on sports

We don’t need opinions. Just sports.
Posted by Quatrepot
Member since Jun 2023
4053 posts
Posted on 6/30/23 at 2:17 pm to
I just love being able to see so many LSU games televised. Growing up, it was a rare thing.
Posted by SpartanSoul
Member since Aug 2016
885 posts
Posted on 6/30/23 at 2:18 pm to
quote:

I would pay for it year round for sure, because I watch more than college football (such as...baseball?) and I would love to drop my main streaming service (YouTubeTV) and save fifty bucks a month.


In 2011 ESPN had over 100 million subscribers, now they have around 74 million. The big question is how many would subscribe. They have to cut cost to get the subscription price low enough that people will hang around all year. Somewhere around $20 and I think they would do well. Get much over that and people will seek alternatives.
Posted by Scatback1
Denham
Member since Dec 2021
750 posts
Posted on 6/30/23 at 2:34 pm to
In the second quarter of 2023, The Walt Disney Company generated about 21.82 billion U.S. dollars in revenue, up 13 percent from the same quarter of the previous year.
Posted by chalmetteowl
Chalmette
Member since Jan 2008
47664 posts
Posted on 6/30/23 at 2:34 pm to
quote:

As for cable, it is dying at an increasing rate. Subscriber levels are at the 1980 levels and dropping fast.


Does this include people who have satelite?
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