Most Americans Don't Watch ESPN
Posted: Sat Nov 11, 2006 1:05 am
More news on sports programming (http://www.usatoday.com/tech/news/2006- ... able_x.htm)
Cable TV is about to change the way they do business. Instead of charging a flat rate for the standard collection of channels, they will charge for individual channels --allowing the consumer to control what they watch and how much they pay. This will really make it clear that most people couldn't care less for sports. A USA Today poll (see link) indicates that less than 28% of respondents said they would pay to watch ESPN. If only that few people pay for sports programming and without the rest of us subsidizing it (by subscribing to standard cable) I predict sports programming will quickly dwindle. It will go from omni-present million dollar glitzy commercials to black and white reruns in a hurry! Disney, which owns ESPN, can see the dive in profits coming and is fighting against the new ala-carte system with everything they have.
So I am encouraging MY cable provider to switch to ala-carte! As soon as possible!
"An a la carte system would topple the economic equation that's fed the cable industry. Programmers would be hit hard "because their business model for the last decade has been bundling channels," says Paul Gallant, an analyst at Stanford Washington Research.
Consider ESPN, owned by Disney. It's one of the most expensive channels in expanded basic: $2 to $3 a month per subscriber. Many other channels cost 25 cents or less.
Yet only about 30% of consumers regularly watch ESPN, says Vinciquerra of Fox. The cost of ESPN winds up being subsidized by the remaining 70% of viewers. His view is consistent with those of other cable operators.
Disney insists ESPN is popular with the masses; the USA TODAY poll suggests otherwise. The poll indicates just 28% of Americans would pay a fee to buy a sports programming package that included ESPN. Most â?? 53% â?? said they probably wouldn't.
About half of Disney's $54 billion market value flows from ESPN. So if ESPN's value plummeted, so would Disney's value to investors. "
<b>P.S. If I had stock in Disney I would sell it because half of their revenue comes from ESPN and it's about to take a dive.</b>
Cable TV is about to change the way they do business. Instead of charging a flat rate for the standard collection of channels, they will charge for individual channels --allowing the consumer to control what they watch and how much they pay. This will really make it clear that most people couldn't care less for sports. A USA Today poll (see link) indicates that less than 28% of respondents said they would pay to watch ESPN. If only that few people pay for sports programming and without the rest of us subsidizing it (by subscribing to standard cable) I predict sports programming will quickly dwindle. It will go from omni-present million dollar glitzy commercials to black and white reruns in a hurry! Disney, which owns ESPN, can see the dive in profits coming and is fighting against the new ala-carte system with everything they have.
So I am encouraging MY cable provider to switch to ala-carte! As soon as possible!
"An a la carte system would topple the economic equation that's fed the cable industry. Programmers would be hit hard "because their business model for the last decade has been bundling channels," says Paul Gallant, an analyst at Stanford Washington Research.
Consider ESPN, owned by Disney. It's one of the most expensive channels in expanded basic: $2 to $3 a month per subscriber. Many other channels cost 25 cents or less.
Yet only about 30% of consumers regularly watch ESPN, says Vinciquerra of Fox. The cost of ESPN winds up being subsidized by the remaining 70% of viewers. His view is consistent with those of other cable operators.
Disney insists ESPN is popular with the masses; the USA TODAY poll suggests otherwise. The poll indicates just 28% of Americans would pay a fee to buy a sports programming package that included ESPN. Most â?? 53% â?? said they probably wouldn't.
About half of Disney's $54 billion market value flows from ESPN. So if ESPN's value plummeted, so would Disney's value to investors. "
<b>P.S. If I had stock in Disney I would sell it because half of their revenue comes from ESPN and it's about to take a dive.</b>