(03-30-2019 03:15 PM)Kit-Cat Wrote: (03-30-2019 01:05 PM)quo vadis Wrote: (03-30-2019 11:24 AM)johnbragg Wrote: (03-30-2019 09:52 AM)Kit-Cat Wrote: (03-29-2019 01:46 PM)CougarRed Wrote: Launch April 12, 2018
Sept 20, 2018 - announces 1 million subscribers
Feb 5, 2019 - announces 2 million subscribers
So 5 months, 1 week for the first million
4 months, 2 weeks for the second million
By August 2019, should be over 6 million at that rate. 10 million by the close of 2020.
DAZN has said its goal is to hit 5 million subscribers as a target.
I don't think you can view ESPN+ growth as an exponential doubling like you suggest only that 1 million more subscribers have joined the bandwagon.
I don't think there are any good models for what ESPN+'s growth is going to look like. It will grow, either quickly or slowly, to a market saturation point and stop. But where is that point? Growth linear or exponential? Or maybe in "jumps" as new content types come onto ESPN+? Kind of a crapshoot
I expect ESPN+ to grow in jumps, both seasonal and based on new content. E.g., as football season starts, there will be a jump as fans of conferences with games on plus sign up. Or if they add new popular content like MMA, that will cause a jump.
MMA isn't going to give a significant bump.
What would bump is if it was 11.99 but included the entire ESPN offerings from ESPN/ESPN2/ESPNU. That is the kind of product people want, not 5 or 6 dollars a month for third tier content.
Thing is, for all the talk about the death of cable and the rise of streaming, there are still far.more cable viewers than streamers.
ESPN currrently gets around $10 per cable customer for its top 4 tier of ESPN, ESPN2, ESPNU, and the.SECN. That's $10 whether you watch or not. They collect that from about 80 million homes, and the reason they do is the cable companies provide that reach. It's mutually beneficial - cable TV wants the ESPN bundle to attract people to sign up for cable, and ESPN wants to be on cable for its pipeline in to all those homes and TVs, so offers the bundle at a low price. Cable customers get a group discount.
But ESPN has zero incentive to offer an a la carte streamer those 4 networks for the $12 price you want. That's because you are so small compared to the traditional cable market.
And the reason for that is family: yes, if i was single i would probably ditch cable and just get the OTA channels, the news channels, and the sports channels. I would thus lower my $130 cable bill and get my TV bill down to about $50 via Youtube TV. But i am not that guy. My wife wants a bunch movie and female channels, she loves silly reality shows on stuff like Bravo and TLC and other channels i didn't know existed until she moved in. And my kid wants a bunch of kid and teenager channels. If i tried to buy all that disparate content via a la carte streaming, it would be more than my cable bill. For the lone cheetos munching and video watching sports junkie, cord cutting is better. But for 90% of families cable really does offer more efficiencies because of the group discounts. Importantly, targeted streaming does NOT save you money by offering you the same array of channels as cable for a lower price. It saves you money by allowing you to cut a large number of channels you get on cable but don't watch and just pay for the channels you actually watch. But you pay more on a per-channel basis with streaming than with cable, so if you have a family that wants to watch all those cable channels, targeted streaming is more costly. And IMO, most families are like that and likely will be.
Back to your original ESPN request: I think we know the real streaming profit price point for the ESPN bundle you want - it's the approximately $25 ESPN gets from the Youtube channel to have them on.
IMO, AAC fans who think PLUS will become a big mass market thing, such that tens of millions will have it and the AAC games on plus will get lots of casual eyeballs, are in for a surprise. As you said earlier, the whole strategic point of PLUS is to use third tier content to recapture some money from the small tribe of cord cutters. But we shall see.
Its like the baker who sweeps up all the leftover dough and tailings left on the table from making a batch of pies and throws it all together to make one more pie.