dslreports logo
 story category
ESPN Has Lost 3.2M Viewers in The Face of Cord Cutting

With sports content and ESPN a primary reason for soaring cable bills -- and the rise in so-called "skinny bundles" for consumers looking to avoid these costs -- ESPN is understandably nervous. According to the Wall Street Journal, ESPN has lost 3.2 million viewers over the last year as consumers continue to scale back or cut their cable TV packages in the face of relentless price hikes. As such, ESPN is engaging in "belt tightening measures" to counter the losses.

Click for full size
While ESPN has been more aggressive than many in terms of embracing digital alternatives, the Journal notes that the channel's contracts may have the company between a rock and a hard place:
quote:
If ESPN offers its channel as a direct-to-consumer streaming service, some pay-TV operators have the contractual right to boot ESPN out of their most widely-sold channel packages and sell it a la carte, according to people familiar with the matter.

ESPN would have to charge about $30 a month per customer in an over-the-top offering to make the same money using that model, analysts say. But those distributors would have the right to undercut ESPN in their retail pricing, the people said.


As it stands, there's no evidence that ESPN plans to offer such a direct-to-consumer service anytime soon.


Most recommended from 69 comments



toby
Troy Mcclure
join:2001-11-13
Ravensdale, WA

toby

Member

Costs need to be reduced

Old fat retired sports men need to be paid less to talk rubbish in between hours of adverts.

An awful tv channel, it is time to go.

weaseled386
join:2008-04-13
Port Orange, FL
kudos:1

weaseled386

Member

Sounds good...

... I'll just continue without cable. Sports -- and the people who talk about them -- are not important to me.
sandman_1
join:2011-04-23
11111

sandman_1

Member

Good

I hope they bleed more viewers.
smcallah
join:2004-08-05
Home

smcallah

Member

Well...

I would say they didn't lose 3.2 million "viewers", they lost 3.2 million subscribers. People "forced" to have it because of Disney's carriage bundles. I have to pay for it with my cable subscription, but I don't watch it. If I drop cable, ESPN doesn't lose a viewer, but they'd say they did.

karlmarx
join:2006-09-18
Signal Mountain, TN
·EPB Fiber Optics
·Xfinity

karlmarx

Member

Not necessarily a small market, but not as profitable as they want

ESPN does have a place in the cable lineup. There are enough sports fans to make it viable. The problem is, the PRICE of the sports tier is way out of whack with the value it provides. Sure, I like to watch football games on sunday, but I'm not willing to shell out almost $400.00 a year to do it. It does not have enough value for me to pay for it. I don't want to pay that much money for something that does not have that much value for me, so I refuse to pay for sports. The problem occurs when ESPN is bundled with channels I DO want.
The solution is very simple. Complete A-la-carte channel pricing. I would be willing to pay ABC/NBC/CBS/FOX/CW $2.00 a month each (considering the number of commercials they have, I should actually be asking them to pay me.) I will pay for AMC/History/Sci-Fi and maybe a few others for a few dollars a month. I don't want to spend more that $25.00 a month TOTAL for the 7-8 channels I do watch.

Here's where their model all breaks down. I'm moving to Chattanooga TN next month, and I've signed up for 1gb/1gb for $69.99 a month.
I didn't subscribe to a TV packages (as I get get an OTA HD Antenna which gets me all the major networks).
Guess what I WILL do with 1gb/sec. I will get the TV Shows from the networks I can't get OTA via torrents. Everyone loses. I am more than willing to pay for those channels. I am NOT willing to be forced to buy a bundle of 100 channels for $100.00 a month to get the 8 or so channels I do watch. 5 of them I can get OTA, 3 of them I will download.
I am a corporation. I have the right, nay, the OBLIGATION to lie, steal, cheat and do whatever I can to maximize my returns for my shareholders (me). If that involves bending the law, so be it. As long as the CORPORATION is the one downloading, the worst that can happen is it gets a fine. Oh well, that's the cost of doing business. As a corporation, I can't go to jail, I can only be fined. Thanks Citizens United. I'm just playing with the same playbook megacorps use.
itguy05
join:2005-06-17
Carlisle, PA

itguy05

Member

Buh-Bye

Good Riddance ESPN. We don't want you, we don't need you, and you need to go.

Snakeoil
Ignore Button. The coward's feature.
Premium Member
join:2000-08-05
Mentor, OH
kudos:2

Snakeoil

Premium Member

I never watch ESPN

But yet I am forced to pay for it.

I'd rather pay for what I want to watch, VS paying for everything.

ArgMeMatey
join:2001-08-09
Milwaukee, WI
kudos:3

ArgMeMatey

Member

$30 a month? Sounds like a bargain to me ...

... Since I wouldn't be paying for it! I don't mind subsidizing education and paying my fair share for snow plowing and garbage collection, but I draw the line at sports.

(Well, I try to draw the line at sports, but elected officials around here still seem to think that having taxpayers pay for stadiums for rich guys is reasonable. But that's another topic.)

I am sure they have done the math and found the current model of having non-sports-consumers subsidize the service to be most profitable, but when 3.2 becomes 6.4 and so on, and so on, eventually they will offer some more equitable options.
grabacon9
join:2013-08-21
Spencer, IN

grabacon9

Member

Good.

Greedy Morons.
bluebirdpod
join:2011-09-28
Wheat Ridge, CO

bluebirdpod

Member

Lost Viewers I dont think so,

How can it be called LOST when most of those so-called viewers never
watched ESPN. I been paying for it in my directv package for years and
I never watch it. If the people that watched it were the only people
paying for it, they would either never be able to pay for it, or the
viewers would pay a ton more to keep it.

Sarick
It's Only Logical
Premium Member
join:2003-06-03
USA

Sarick

Premium Member

A good way to fix these companies.

You know how Disney etc want their packages bundled? If we can't get a single channels why not sell their bundles as seperate packages. This way they'll still get their channels all bundled but the customers can still choose if they think those channels are worth getting.

Honestly, if costumers had the option of opting out of channels for a refund over cutting the cord entirely I assume a few people who are still reluctant would remove channels they don't want and get refunded.

The problem is that when you buy a package you can't remove specific channels and be refunded for them. The broadcaster is still making money on those channels even if someone doesn't watch them.

I never watch ESPN's why should I pay for stuff I don't watch.

valinski
@cityofhouston.net

valinski

Anon

Why

I don't want it and I don't want to pay for it, dam Disney.

pjsutton
join:2013-06-25
Kempton, PA

pjsutton

Member

No ESPN here

I couldn't even tell you what channel ESPN is for me on Directv. I have no interest in sports. ESPN better not raise rates to make up for this. I'd be all for DTV dropping ESPN if that was the case. Though I don't that'll happen...
tabernak93
join:2015-02-16
Lucedale, MS

tabernak93

Member

Bring on a la carte

ESPN might have to significantly cut back costs, but based on this 35.7% of users do want ESPN:
»Most Users Want A La Carte TV, Don't Care About ESPN

Plenty of channels will continue to exist just fine, they'll just have to adjust their models. People are tired of subsidizing channels they don't watch, rightfully so.

How about ..