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Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - Printable Version

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Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - PurpleReigns - 06-30-2015 01:13 PM

LINK

I think instead of dropping talent, they should start dropping some of the inventory. Do they really need Monday, Wednesday, AND Sunday Night Baseball? FS1, NBCSN, and/or CBSSN would all like Monday or Wednesday nights. Hell increase Turner's presence with TNT getting it.

Fox Sports could have a portion of the NBA contract, etc.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - CyberBull - 06-30-2015 03:13 PM

Keep this report mind when fans suggest/insist that networks are going to automatically increase B12 rights fees if they add new members...or that the AAC's contract is going to somehow quadruple to around $10million/year/school.

ESPN has just made a lot of bad business decisions. The Longhorn Network is a bust and the money they are paying the one trick pony ACC isn't exactly a money maker. Makes you wonder if the ACC Network is going to get a green light...and if not the ramifications on realignment. See FSU's pending threat...


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - Attackcoog - 06-30-2015 04:41 PM

(06-30-2015 03:13 PM)CyberBull Wrote:  Keep this report mind when fans suggest/insist that networks are going to automatically increase B12 rights fees if they add new members...or that the AAC's contract is going to somehow quadruple to around $10million/year/school.

ESPN has just made a lot of bad business decisions. The Longhorn Network is a bust and the money they are paying the one trick pony ACC isn't exactly a money maker. Makes you wonder if the ACC Network is going to get a green light...and if not the ramifications on realignment. See FSU's pending threat...

The increase for the Big-12 is apparently part of a signed and executed contract---so nobody is suggesting the Big-12 rights holders will increase the contract---unless Boren flat out lied---then the reality is the contract increases automatically when the Big-12 actually becomes the Big-12.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - Edgebrookjeff - 06-30-2015 05:04 PM

(06-30-2015 01:13 PM)PurpleReigns2012 Wrote:  LINK

I think instead of dropping talent, they should start dropping some of the inventory. Do they really need Monday, Wednesday, AND Sunday Night Baseball? FS1, NBCSN, and/or CBSSN would all like Monday or Wednesday nights. Hell increase Turner's presence with TNT getting it.

Fox Sports could have a portion of the NBA contract, etc.

If ESPN drops baseball, then what do you expect that they would add. Summer league basketball, WNBA or more worthless fantasy football shows?


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - dezagcoog - 06-30-2015 05:06 PM

(06-30-2015 03:13 PM)CyberBull Wrote:  Keep this report mind when fans suggest/insist that networks are going to automatically increase B12 rights fees if they add new members...or that the AAC's contract is going to somehow quadruple to around $10million/year/school.

ESPN has just made a lot of bad business decisions. The Longhorn Network is a bust and the money they are paying the one trick pony ACC isn't exactly a money maker. Makes you wonder if the ACC Network is going to get a green light...and if not the ramifications on realignment. See FSU's pending threat...

LOL I'm not sure where you've been the past few days but Boren and then Bowlsby both confirmed this "automatic increase." Maybe a few have said second tier rights will too, but the vast majority haven't said anything "automatic" about them. So no one is "suggesting" or "insisting," we're all discussing based on what Boren claimed.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - KNIGHTTIME - 06-30-2015 05:07 PM

Believe it or not people still like MLB...like myself


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - CyberBull - 06-30-2015 05:14 PM

(06-30-2015 05:06 PM)dezagcoog Wrote:  
(06-30-2015 03:13 PM)CyberBull Wrote:  Keep this report mind when fans suggest/insist that networks are going to automatically increase B12 rights fees if they add new members...or that the AAC's contract is going to somehow quadruple to around $10million/year/school.

ESPN has just made a lot of bad business decisions. The Longhorn Network is a bust and the money they are paying the one trick pony ACC isn't exactly a money maker. Makes you wonder if the ACC Network is going to get a green light...and if not the ramifications on realignment. See FSU's pending threat...

LOL I'm not sure where you've been the past few days but Boren and then Bowlsby both confirmed this "automatic increase." Maybe a few have said second tier rights will too, but the vast majority haven't said anything "automatic" about them. So no one is "suggesting" or "insisting," we're all discussing based on what Boren claimed.

So let me see if I got this straight....Big 12 leadership flat out lied in years past so now we are going to believe them....b/c this time they are telling the truth?

BTW, it just more than TV dollars that b12 teams rely on. While the TV contract may indeed have an automatic increase clause.....post season bowl and playoff money will not increase and this cost schools money that won't be made up through a conference championship game.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - PurpleReigns - 06-30-2015 05:39 PM

(06-30-2015 05:04 PM)Edgebrookjeff Wrote:  
(06-30-2015 01:13 PM)PurpleReigns2012 Wrote:  LINK

I think instead of dropping talent, they should start dropping some of the inventory. Do they really need Monday, Wednesday, AND Sunday Night Baseball? FS1, NBCSN, and/or CBSSN would all like Monday or Wednesday nights. Hell increase Turner's presence with TNT getting it.

Fox Sports could have a portion of the NBA contract, etc.

If ESPN drops baseball, then what do you expect that they would add. Summer league basketball, WNBA or more worthless fantasy football shows?

I never said drop baseball. I said slim it down to just Sunday (or just Sunday and Wendesday) and give the weekday games to a new TV partner. Plus if they really wanted to there are several soccer leagues who play during the summer (including the Lamar Hunt Cup here in the states that includes MLS teams)


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - ArmoredUpKnight - 06-30-2015 06:41 PM

Longhorn Network will be the first thing to go if ESPN starts cutting back. Only winner in that deal was Texas.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - Chappy - 07-01-2015 08:02 AM

"ESPN is gleeful in the fact that it has so much content, but there’s a dark cloud as well knowing that with rising costs comes a price and if corporate isn’t happy despite all of the content, the other shoe may drop. ESPN still is making a profit, but it’s not as big as Disney would like. If the trend continues, we’ll see if more cutting is in order."

I'm no industry insider, but I have to think that as long as they are turning a profit they aren't going to release content to their competition. Part of the reason they are number 1 is by gobbling up most of the content the competition could use to close the gap.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - Hank Schrader - 07-01-2015 08:31 AM

(06-30-2015 05:04 PM)Edgebrookjeff Wrote:  
(06-30-2015 01:13 PM)PurpleReigns2012 Wrote:  LINK

I think instead of dropping talent, they should start dropping some of the inventory. Do they really need Monday, Wednesday, AND Sunday Night Baseball? FS1, NBCSN, and/or CBSSN would all like Monday or Wednesday nights. Hell increase Turner's presence with TNT getting it.

Fox Sports could have a portion of the NBA contract, etc.

If ESPN drops baseball, then what do you expect that they would add. Summer league basketball, WNBA or more worthless fantasy football shows?

Increase MLS exposure.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - uhmump95 - 07-01-2015 08:41 AM

(06-30-2015 05:07 PM)KNIGHTTIME Wrote:  Believe it or not people still like MLB...like myself
How old are you? I have heard that MLB's popularity with the youths is diminishing.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - goodknightfl - 07-01-2015 08:46 AM

(06-30-2015 05:07 PM)KNIGHTTIME Wrote:  Believe it or not people still like MLB...like myself

So you are an old chubby white guy??03-lmfao


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - Attackcoog - 07-01-2015 08:56 AM

(07-01-2015 08:02 AM)Chappy Wrote:  "ESPN is gleeful in the fact that it has so much content, but there’s a dark cloud as well knowing that with rising costs comes a price and if corporate isn’t happy despite all of the content, the other shoe may drop. ESPN still is making a profit, but it’s not as big as Disney would like. If the trend continues, we’ll see if more cutting is in order."

I'm no industry insider, but I have to think that as long as they are turning a profit they aren't going to release content to their competition. Part of the reason they are number 1 is by gobbling up most of the content the competition could use to close the gap.

ESPN doesn't just turn a profit. ESPN generates more for Disney than Disney World, Disney Land, Disney Films, and ABC combined---and it's not even close. This is about a slowing rate of growth in ESPN profits which is an issue with its future stock price (which is what Wall Street worries about). ESPN's place as a money machine and as the dominant force in athletics isn't in danger.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - DowdyPirate - 07-01-2015 09:37 AM

(07-01-2015 08:41 AM)uhmump95 Wrote:  
(06-30-2015 05:07 PM)KNIGHTTIME Wrote:  Believe it or not people still like MLB...like myself
How old are you? I have heard that MLB's popularity with the youths is diminishing.

MLB's may be, but but baseball isn't. By the time they get old they'll want to relive their little league glory days


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - Chappy - 07-01-2015 09:40 AM

(07-01-2015 08:56 AM)Attackcoog Wrote:  
(07-01-2015 08:02 AM)Chappy Wrote:  "ESPN is gleeful in the fact that it has so much content, but there’s a dark cloud as well knowing that with rising costs comes a price and if corporate isn’t happy despite all of the content, the other shoe may drop. ESPN still is making a profit, but it’s not as big as Disney would like. If the trend continues, we’ll see if more cutting is in order."

I'm no industry insider, but I have to think that as long as they are turning a profit they aren't going to release content to their competition. Part of the reason they are number 1 is by gobbling up most of the content the competition could use to close the gap.

ESPN doesn't just turn a profit. ESPN generates more for Disney than Disney World, Disney Land, Disney Films, and ABC combined---and it's not even close. This is about a slowing rate of growth in ESPN profits which is an issue with its future stock price (which is what Wall Street worries about). ESPN's place as a money machine and as the dominant force in athletics isn't in danger.

If that's the case, then they definitely aren't releasing any content.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - otown - 07-01-2015 10:19 AM

(07-01-2015 08:56 AM)Attackcoog Wrote:  
(07-01-2015 08:02 AM)Chappy Wrote:  "ESPN is gleeful in the fact that it has so much content, but there’s a dark cloud as well knowing that with rising costs comes a price and if corporate isn’t happy despite all of the content, the other shoe may drop. ESPN still is making a profit, but it’s not as big as Disney would like. If the trend continues, we’ll see if more cutting is in order."

I'm no industry insider, but I have to think that as long as they are turning a profit they aren't going to release content to their competition. Part of the reason they are number 1 is by gobbling up most of the content the competition could use to close the gap.

ESPN doesn't just turn a profit. ESPN generates more for Disney than Disney World, Disney Land, Disney Films, and ABC combined---and it's not even close. This is about a slowing rate of growth in ESPN profits which is an issue with its future stock price (which is what Wall Street worries about). ESPN's place as a money machine and as the dominant force in athletics isn't in danger.

You are partially correct. ESPN is the gift that keeps for Disney and their most valuable investment. Disney owns 80% of ESPN, the other 20% is Heart Communications, which probably keeps the old newspaper division afloat. ESPN by itself has been valued at greater than $50 billion.

First quarter 2015 NET income for Disney was $2.18 billion

Of that the breakdown is as follows, at least the pieces that I can find:

Cable (Combines ESPN, Disney channel, Disney Jr, ABC Family....realistically pretty much all ESPN) : $1.26 billion, so 80% of that is $1.008 billion for Disney

Disney Consumer/Merchandise Products: $626 million

Disney Parks and Resorts: $805 million

Disney Film Studios: $544 million

Disney broadcast (ABC): $244 million

Disney interactive (disney.com and game apps): $75 million

Yes, then numbers don't add up to $2.18 billion, but I suspect there were lots of write offs from previous year crashes with some films (cough Lone Ranger, John Carter) as well as Shanghai Disney construction

So, you are partially correct in that it is a huge part of their revenue stream......... it is not more profitable than everything else combined.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - PurpleReigns - 07-01-2015 12:15 PM

(07-01-2015 08:31 AM)Hank Schrader Wrote:  
(06-30-2015 05:04 PM)Edgebrookjeff Wrote:  
(06-30-2015 01:13 PM)PurpleReigns2012 Wrote:  LINK

I think instead of dropping talent, they should start dropping some of the inventory. Do they really need Monday, Wednesday, AND Sunday Night Baseball? FS1, NBCSN, and/or CBSSN would all like Monday or Wednesday nights. Hell increase Turner's presence with TNT getting it.

Fox Sports could have a portion of the NBA contract, etc.

If ESPN drops baseball, then what do you expect that they would add. Summer league basketball, WNBA or more worthless fantasy football shows?

Increase MLS exposure.

Add the domestic cup and have MLS play some weeknight games.


RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - johnbragg - 07-01-2015 01:47 PM

(06-30-2015 01:13 PM)PurpleReigns2012 Wrote:  LINK

I think instead of dropping talent, they should start dropping some of the inventory. Do they really need Monday, Wednesday, AND Sunday Night Baseball? FS1, NBCSN, and/or CBSSN would all like Monday or Wednesday nights. Hell increase Turner's presence with TNT getting it.

Fox Sports could have a portion of the NBA contract, etc.

That's mostly wrapped up in long-term, big-money deals. I suppose they could sublicense, but I don't think NBC-SN or CBS-SN or FS1 is going to fork over a whole lot of money for sublicensed content.

Heck, the whole premise of Fox and Comcast investing in FS1/NBC-SN is to get a piece of the ESPN pie. If ESPN ever starts losing money, why would Fox or Comcast want a bigger piece of that?


Re: RE: Awful Announcing: Is ESPN becoming a drain on Disney's bottom line? - lance99 - 07-03-2015 01:37 PM

(07-01-2015 08:02 AM)Chappy Wrote:  "ESPN is gleeful in the fact that it has so much content, but there’s a dark cloud as well knowing that with rising costs comes a price and if corporate isn’t happy despite all of the content, the other shoe may drop. ESPN still is making a profit, but it’s not as big as Disney would like. If the trend continues, we’ll see if more cutting is in order."

I'm no industry insider, but I have to think that as long as they are turning a profit they aren't going to release content to their competition. Part of the reason they are number 1 is by gobbling up most of the content the competition could use to close the gap.

IMHO, there is issues down the road. They have to renew with the cable/satellite companies(someone knows when?) I know negotiations start high, but they will hit them with $10/sub, and the companies will walk away and never come back.