(11-16-2012 06:16 PM)goodknightfl Wrote:  

(11-16-2012 02:39 PM)3601 Wrote:  ESPN is paying $160 Million per year to air the Sugar Bowl and the Rose Bowl ($80 Million each).

http://espn.go.com/college-football/stor...l-air-game

Can they actually sell $80 Million worth of advertising for each game? Will they actually make money on these deals?

For ESPN the commercials are simply an added bonus. They get something like 5 billion per year in carry fees alone.

Right. Ads are gravy. They don't have to sell out for the game to be profitable.

(11-16-2012 04:50 PM)Frank the Tank Wrote:  

(11-16-2012 04:44 PM)Topkat Wrote:  

(11-16-2012 04:29 PM)MechaKnight Wrote:  

(11-16-2012 04:14 PM)Frank the Tank Wrote:  there are a LOT more people that would drop a carrier that didn't have ESPN than would be happy with a lower cable bill

The guy from DISH that was quoted in the article wasn't talking about cancelling ESPN all together, but moving it to a separate sports package. That way the people who really want it can still get it, while DISH can lower rates for everyone else.

If they worked the math right they might even be able do it without charging much more for the sports package than they currently are for basic. Just charge the basic subscriber a little more than is necessary based on the costs for basic cable, and use that to subsidize the sports package so it's still affordable even with the higher rates from ESPN.

I agree... they are not talking about dropping espn, just that it may go to another tier.

People can do the math and decide whether to order the tier or switch to another carrier.

That's not a small matter, though. In cable terms, "just moving to the sports tier" is the equivalent of climbing Mt. Everest immediately after running the Iron Man Triathlon. Comcast is already locked in for a long-term deal with Disney. With Comcast having ESPN (among other Disney channels) guaranteed to be on basic for the foreseeable future, who is the biggest national player next to DirecTV, there's NFW that Disney would ever come within one inch of allowing another cable carrier to move ESPN to a sports tier -they either sign up for the full boat for ESPN or they don't get ESPN at all. So, it's a fallacy to believe that the sports tier option is even there in practicality because Disney has complete leverage in not even considering it (as much as a carrier like Dish might wish for the opposite to be the case). Dish itself has tried the "we're cheaper" argument in the NYC market by not carrying the YES Network and that has been a bust.

Well Frank, I won't argue with you... I just don't see how anyone can look at the sports TV landscape and not see what is going on.

Golf Channel, NBA League Pass, MLB Network and on and on. ESPN already has an upper tier with their College Full Court.

It's only going to continue. The Big 10 and PAC Networks are going to have to grow their networks, and to do that they are going to need prime football games (that ain't Indiana vs. Northwestern). Interesting for their next contract negotiations.

I've seen far too many star subsidiaries of company's that people thought were indestructable eventually take the fall.

BTW, was that Disney bemoaning falling ad rates for its media companies for this quarter in a conference call with stock analysts? Was that Nielson that just reported cable tv reported 1.5M people cut the cable cord this past year?

You can have the last word, but it's only a matter of time, imo.