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Monday, May 08, 2017

Why ESPN Hemorrhaging Money Will Impact The Next Wave Of National TV Deals

Overall, the landscape is seeing a shift with subs dropping from pay-TV. Whether there is a shift in providing skinny bundles or somehow channels being offered ala carte, fees through traditional pay-TV subscribers will likely continue to drop. Disney has made a substantial investment in BAM Tech, the MLB Advanced Media spin-off to provide ESPN an over-the-top (OTT) service platform that can grow, but there is bound to be a period of flux between the pay-TV model and getting to cord-cutters or no-corders that presents a revenue drop before transitions to monetizing just those that have no interest at all in pay-TV.

Right now, the model is pay-TV and premium live sports content to digital are attached at the hip. Yes, you can watch streaming to digital devices, but you’re forced to authenticate by showing that you have a pay-TV subscription. This has left those that have cut the cord with an inability to access the content, and as the MoffettNathenson numbers show, there is an increasing number of subscribers that are willing to walk away from live content if not available through streaming services. This audience can get some live streamed content through deals such as Twitter or Facebook, but it is not expansive, and there is limited programming to bookend live content.

So, unless ESPN gets the ship righted, they could potentially walk away from some content, or at the very least, not be able to be aggressive in bidding, which could allow others to move in and grab content out from underneath them.

RoyalsRetro (AG#1F) Posted: May 08, 2017 at 11:46 AM | 52 comment(s)
  Beats: cable, espn, television rights

 

 

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