From our parent company, Yahoo!
TL;DR version:
ESPN knocks down $6 per cable subscriber, making $9 billion per year. Most basic cable networks get a max of $1.50 per subscriber, so ESPN is a big deal in terms of profits. A lot of cable subscribers pay for ESPN, but don't watch it. If ESPN tried to make a standalone internet subscription, their revenues would fall to around $4 billion in a best case scenario. They've got commitments for $5.8 billion per year from contracts to televise sporting events.
***
My thoughts:
The cable package system is declining, and ESPN accounts for nearly 50% of Disney's profits. They're making obscene money, but none of their future options include any method of getting people who don't watch to foot a significant portion of the bill.
People thinking that there's another big payday coming when the current college contracts run out may be in for a disappointment.
TL;DR version:
ESPN knocks down $6 per cable subscriber, making $9 billion per year. Most basic cable networks get a max of $1.50 per subscriber, so ESPN is a big deal in terms of profits. A lot of cable subscribers pay for ESPN, but don't watch it. If ESPN tried to make a standalone internet subscription, their revenues would fall to around $4 billion in a best case scenario. They've got commitments for $5.8 billion per year from contracts to televise sporting events.
***
My thoughts:
The cable package system is declining, and ESPN accounts for nearly 50% of Disney's profits. They're making obscene money, but none of their future options include any method of getting people who don't watch to foot a significant portion of the bill.
People thinking that there's another big payday coming when the current college contracts run out may be in for a disappointment.
