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Nov 28, 2015
8:37:20am
Bob Vance All-American
Is ESPN's business bubble about to burst? This could be bad news
for everyone counting on their lucrative ESPN contracts, including BYU. BYU is in a better financial position than many other teams for sure due to sound accounting, and it's own broadcasting facilities, but still. It's worrisome.

http://www.foxsports.com/college-football/outkick-the-coverage/espn-has-lost-7-million-subscribers-the-past-two-years-112515

"If that's true then around 48 million cable and satellite subscribers watch ESPN every month. That's a very big number. But it also means means that 44 million cable and satellite subscribers pay $6.60 a month for ESPN and don't watch it in an average month. That means every month ESPN is pocketing $290 million off cable and satellite subscribers who don't watch the channel. Over the course of a year ESPN makes over $3 billion a year off consumers who don't watch ESPN.

Eventually isn't your Aunt Gladys going to realize this?

And for those of you who say that ESPN should go over the top direct to consumers -- first, they lack the contractual ability to do so without losing their existing subscribers -- second, how many die hard sports fans are there who would pay for ESPN standing alone? Right now you can get the ESPN channels through the web already without a cable or satellite subscription -- for around $25 a month. That's a pretty good deal considering it also includes several other channels, but it's only sustainable because 92 million people are still subscribing to regular ESPN."
Bob Vance
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Bob Vance
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