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ESPN Preps for More Layoffs as Cordcutting Woes Continue

ESPN's continuing problems with cord cutting and sagging ratings will likely result in more layoffs before the end of the year. Multiple sources tell the Sporting News that another 40-60 positions are expected to be laid off in either November or December. The layoffs are expected to include both on-air TV/radio talent and behind-the-scenes production staffers. The moves come after ESPN lost more than 11 million subscribers in just the last few years.


Most of the executives actually responsible for failing to see cord cutting coming remain employed, despite their failure to help ESPN adapt to the streaming video era.

Many of these executives, like ESPN's John Skipper, actively and repeatedly downplayed the cord cutting threat, strongly implying that departing customers "tended to be older and less affluent" (read: not important). And when programming metric companies like Nielsen began to show data indicating ESPN was in trouble, instead of adapting, ESPN made an ugly and public stink about Nielsen's estimates, claiming last October the numbers weren't genuine. But Nielsen stood by the numbers after temporarily pulling them to confirm accuracy.

The numbers continue to highlight a huge swath of people who don't watch sports, and are tired of paying for it. ESPN's been losing 2-4% of its subscriber base annually, with one recent survey suggesting that 56% of consumers would drop ESPN in a heartbeat if it meant saving the estimated $8 more the channel costs cable subscribers each and every month.

Earlier this year ESPN finally buckled to the idea of offering a standalone streaming service after spending the last few years insisting such an idea made no cohesive business sense. This ESPN standalone service is expected to arrive alongside a new Disney film and television streaming service sometime in the new year.

Most recommended from 61 comments


Chuck_IV
join:2003-11-18
Connecticut

27 recommendations

Chuck_IV

Member

It's more than just cord cutting...

They have become too political. People want to turn to them for sports, not politics or any of their political views.

They don't seem to understand this.
adam1991
join:2012-06-16
united state

20 recommendations

adam1991

Member

Again, ESPN, do the math

The moves come after ESPN lost more than 11 million subscribers in just the last few years.

So, let's say 5 years here.

Compared to 5 years ago, ESPN's revenue is down...3 minus 5 is two, carry the one...$924,000,000/year.

At $7/month/subscriber, a billion dollars a year less revenue compared to 5 years ago.

And all during that time ESPN placed contracts assuming that revenues would go UP, that ESPN could come back to the cable companies and get another 50 cents, another dollar, per sub per month, ongoing forever and ever.

They didn't even plan for FLAT revenue.

Mmmmmm, this popcorn is good.

Red Hazard
Premium Member
join:2012-07-21
O Fallon, IL

12 recommendations

Red Hazard

Premium Member

Management

Those who made the bad decisions keep their jobs. Peeons that have no policy say so are the ones fired. The top pico brains in management just don't get it.
NYC45
join:2017-02-01

1 edit

12 recommendations

NYC45

Member

No need ESPN

for me since I watch my local teams in my regional cable sports networks anyway.( MSG, YES, SNY). Why would I want to watch ESPN so I could hear Jemele Hill big mouth and the social justice warriors issues of the day. If I want to watch that I would turn to MSNBC, CNN or Fox news.
mdlund0
join:2011-08-02
Lawrence, KS

3 recommendations

mdlund0

Member

Once upon a time...

I could turn ESPN on at any time during the day and see either SportsCenter or some kind of sports: Lumberjack competitions, Strongman competitions, soccer, golf, hell.. even poker or pool. Now what do you get? A bunch of talking heads screaming at each other. Who needs it? I turned it off a couple of years ago and haven't missed it. They forgot who they were in pursuit of the almighty dollar and it's come back to bite 'em in the a$$.
Joe12345678
join:2003-07-22
Des Plaines, IL

2 recommendations

Joe12345678

Member

diseny channel needs go premium

diseny channel needs go premium again