Movies and TV ESPN reportedly slated for another huge round of layoffs - Page 5

Eleazar · 03-06-2017, 03:45 PM

ESPN is reportedly preparing for another round of cost-cutting — and this time, the cuts could be even more significant, at least in terms of name recognition.

Michael Rand
March 6, 2017

http://strib.mn/2lPzMix

News of layoffs in the media industry have become all-too-familiar in recent years, owing to declining user rates and hollowed out advertising revenue.

Even sports media behemoth ESPN hasn’t been immune to the trend; we’re barely a year removed from a round of layoffs during which the company shed about 300 employees.

And now ESPN is reportedly preparing for another round of cost-cutting — and this time, the cuts could be even more significant, at least in terms of name recognition. SI’s Richard Deitsch has some of the details in a recent column:

SI has learned that ESPN will have significant cost-cutting over the next four months on its talent side (people in front of the camera or audio/digital screen). Multiple sources said ESPN has been tasked with paring tens of millions of staff salary from its payroll, including staffers many viewers and readers will recognize.

The reasons offered by Deitsch are familiar: ESPN’s subscriber base is shrinking — from 100 million early in 2011 to less than 88 million in a February estimate. Every lost subscriber costs the company more than $8 a month in lost revenue between ESPN and ESPN. That’s roughly $100 a year per subscriber. Multiply that by 12 million lost subscribers in the last six years and you see a $1.2 billion (per year) deficit from where ESPN could have been if the subscriber base had stayed flat.

Combine that with declining ad revenue — which caused the stock of Disney, ESPN’s parent company, to tumble at its last reporting date last month — and you have a dangerous mix that leads to layoffs.

That said, the reported layoffs also seem a little disingenuous — a move designed to appease shareholders more than something truly necessary in the moment.

I say that because even though ESPN’s subscriber base has declined steadily in recent years, their fee per user has gone up significantly in the same span. As of mid-2016, the fee for ESPN alone was $7.21 per month — up more than a dollar from 2014 and more than double what it was in 2007. Basically, ESPN is offsetting lost revenue from lost subscribers by making those who still get the network pay more.

This math is over-simplified with round numbers, but it’s still relevant: 88 million subscribers paying $7 a month ($616 million) is more revenue than 100 million subscribers paying $6 a month ($600 million).

Continuously cranking up that fee might be a dangerous game to play since there is a risk of accelerating the spiral of those ditching cable (and therefore ESPN) because of high fees. But sports are a major part of the reason subscribers stick with cable/satellite packages. What’s another dollar or two to die-hard fans? We’ll find out.

O.city · 03-06-2017, 08:24 PM

That is awesome. I'll do that. Easily.

**notorious** · 03-06-2017, 08:28 PM

Quote:

Originally Posted by O.city

That is awesome. I'll do that. Easily.

It's going to save me 75/ month for something I don't use anyway.

95% of our dish is Nickelodeon and my wife's shitty reality TV.

Frazod · 03-06-2017, 08:30 PM

Quote:

Originally Posted by notorious

It's going to save me 75/ month for something I don't use anyway.

95% of our dish is Nickelodeon and my wife's shitty reality TV.

Yeah, but how will your wife feel about losing that shitty reality TV? You might end up watching more TV than you'd planned if you end up sleeping on the couch.

As for me, until Sunday Ticket and MLB Extra Innings are wrested away from DTV, I'm stuck with them.

O.city · 03-06-2017, 08:31 PM

Quote:

Originally Posted by notorious

It's going to save me 75/ month for something I don't use anyway.

95% of our dish is Nickelodeon and my wife's shitty reality TV.

I admittedly watch a crap load of TV. But a lot of it is same 7 channels, all on that list.

tk13 · 03-06-2017, 08:45 PM

That is a pretty good list of channels. Only big thing that's missing is TBS and TNT. Need those to watch the NCAA tourney.

Why Not? · 03-06-2017, 10:12 PM

Quote:

Originally Posted by Frazod

As for me, until Sunday Ticket and MLB Extra Innings are wrested away from DTV, I'm stuck with them.

You and me both. Sucks, but it is what it is. No way I'm going without those and I'm not ****ing streaming them on some game console

Frazod · 03-06-2017, 10:14 PM

Quote:

Originally Posted by Why Not?

You and me both. Sucks, but it is what it is. No way I'm going without those and I'm not ****ing streaming them on some game console

Or watch them on the little TV with no sound in the corner of a sports bar while the goddamn Bears are playing on all the big ones.

Why Not? · 03-06-2017, 10:19 PM

Quote:

Originally Posted by Frazod

Or watch them on the little TV with no sound in the corner of a sports bar while the goddamn Bears are playing on all the big ones.

Oh hell no. Here, there is one fan base that fills the sports bars because they are all way to cheap to buy the package. I'll give you one hint, the team rhythms with

"Disgusting, criminal, insane, losers for decades, Darth Vader wannabe **** heads"

Frazod · 03-06-2017, 10:27 PM

Quote:

Originally Posted by Why Not?

Oh hell no. Here, there is one fan base that fills the sports bars because they are all way to cheap to buy the package. I'll give you one hint, the team rhythms with

"Disgusting, criminal, insane, losers for decades, Darth Vader wannabe **** heads"

I guess there are worse things than Bears fans......

Why Not? · 03-06-2017, 10:28 PM

Quote:

Originally Posted by Frazod

I guess there are worse things than Bears fans......

Indeed. Lol

Mr. Laz · 03-06-2017, 11:31 PM

Quote:

Originally Posted by KChiefs1

Giving Bruce(Caitlyn)Jenner the Arthur Ashe Courage Award for heroism, endorsing militant pressure group Black Lives Matter at the ESPYs, firing Curt Schilling for not being more supportive about transgender bathrooms and awarding President Obama a spurious “First Fan” award as part of its MLK Day tribute.

There was also the NFL-National Anthems controversy in which ESPN seemed to sympathize with the anti-American actions of Colin Kaepernick, and when the network turned a blind eye when panelist Kevin Blackistone called the national anthem a “war anthem.”

Sent from my iPhone using Tapatalk

That has almost nothing to do with the actual shows though.

That is just you being pissed off because you heard about it somewhere.

Do you not watch networks(abc,nbc,cbs etc) if their owner in a liberal as well?

To each his own.

Pasta Little Brioni · 03-06-2017, 11:32 PM

Quote:

Originally Posted by notorious

Holy shit, that's awesome.

No AMC, so......FAAAAAIL

ThaVirus · 03-07-2017, 12:14 AM

Quote:

Originally Posted by KChiefs1

Giving Bruce(Caitlyn)Jenner the Arthur Ashe Courage Award for heroism, endorsing militant pressure group Black Lives Matter at the ESPYs, firing Curt Schilling for not being more supportive about transgender bathrooms and awarding President Obama a spurious “First Fan” award as part of its MLK Day tribute.

There was also the NFL-National Anthems controversy in which ESPN seemed to sympathize with the anti-American actions of Colin Kaepernick, and when the network turned a blind eye when panelist Kevin Blackistone called the national anthem a “war anthem.”

Sent from my iPhone using Tapatalk

I wasn't expecting an answer so thanks.

Sounds a lot like you guys are being snowflakes.

Demonpenz · 03-07-2017, 01:08 AM

I know racing isn't a sport but ESPN used to have Thursday night thunder with dirt tracks and boat racing. They also had a great Hockey telecast. It was slipping in the decline then the decade long obsession with Tebow was what killed it for me. Linda Cohn is bad ass though! MARRY ME!

ChiliConCarnage · 03-07-2017, 06:05 AM

ESPN has the same problem as newspapers or CNN, etc. The internet/smartphones completely broke their ability to report the news. As a kid, I would always watch sports center at night and in the morning to get updates but it's 100% unnecessary now.

They still have good shows like outside the lines breaking stories but they've had to fill all the other hours with silly crap shows. Luckily, they had live sports but yeah the subscriber cuts are hurting that now too

I'd think the future would look even worse as they seem to have more competition now with FS1 and the NBC channel

03-06-2017, 03:45 PM
Eleazar Beyond the Rapids Join Date: May 2003 Location: Langley, VA Casino cash: $-370000	ESPN reportedly slated for another huge round of layoffs ESPN is reportedly preparing for another round of cost-cutting — and this time, the cuts could be even more significant, at least in terms of name recognition. Michael Rand March 6, 2017 http://strib.mn/2lPzMix News of layoffs in the media industry have become all-too-familiar in recent years, owing to declining user rates and hollowed out advertising revenue. Even sports media behemoth ESPN hasn’t been immune to the trend; we’re barely a year removed from a round of layoffs during which the company shed about 300 employees. And now ESPN is reportedly preparing for another round of cost-cutting — and this time, the cuts could be even more significant, at least in terms of name recognition. SI’s Richard Deitsch has some of the details in a recent column: SI has learned that ESPN will have significant cost-cutting over the next four months on its talent side (people in front of the camera or audio/digital screen). Multiple sources said ESPN has been tasked with paring tens of millions of staff salary from its payroll, including staffers many viewers and readers will recognize. The reasons offered by Deitsch are familiar: ESPN’s subscriber base is shrinking — from 100 million early in 2011 to less than 88 million in a February estimate. Every lost subscriber costs the company more than $8 a month in lost revenue between ESPN and ESPN. That’s roughly $100 a year per subscriber. Multiply that by 12 million lost subscribers in the last six years and you see a $1.2 billion (per year) deficit from where ESPN could have been if the subscriber base had stayed flat. Combine that with declining ad revenue — which caused the stock of Disney, ESPN’s parent company, to tumble at its last reporting date last month — and you have a dangerous mix that leads to layoffs. That said, the reported layoffs also seem a little disingenuous — a move designed to appease shareholders more than something truly necessary in the moment. I say that because even though ESPN’s subscriber base has declined steadily in recent years, their fee per user has gone up significantly in the same span. As of mid-2016, the fee for ESPN alone was $7.21 per month — up more than a dollar from 2014 and more than double what it was in 2007. Basically, ESPN is offsetting lost revenue from lost subscribers by making those who still get the network pay more. This math is over-simplified with round numbers, but it’s still relevant: 88 million subscribers paying $7 a month ($616 million) is more revenue than 100 million subscribers paying $6 a month ($600 million). Continuously cranking up that fee might be a dangerous game to play since there is a risk of accelerating the spiral of those ditching cable (and therefore ESPN) because of high fees. But sports are a major part of the reason subscribers stick with cable/satellite packages. What’s another dollar or two to die-hard fans? We’ll find out.
Posts: 80,659

03-06-2017, 08:24 PM	#61
O.city In Search of a Life Join Date: Jul 2009 Casino cash: $-545936	That is awesome. I'll do that. Easily.
Posts: 84,158

03-06-2017, 08:45 PM	#65
tk13 ... Join Date: Nov 2001 Casino cash: $-1677500	That is a pretty good list of channels. Only big thing that's missing is TBS and TNT. Need those to watch the NCAA tourney.
Posts: 56,600

03-07-2017, 01:08 AM	#74
Demonpenz Woman should only make babies Join Date: Nov 2003 Location: Apartment "G UNIT!" Casino cash: $-203864	I know racing isn't a sport but ESPN used to have Thursday night thunder with dirt tracks and boat racing. They also had a great Hockey telecast. It was slipping in the decline then the decade long obsession with Tebow was what killed it for me. Linda Cohn is bad ass though! MARRY ME! __________________
Posts: 54,942

03-07-2017, 06:05 AM	#75
ChiliConCarnage TACO SALAD Join Date: Apr 2008 Location: yes Casino cash: $-1881532	ESPN has the same problem as newspapers or CNN, etc. The internet/smartphones completely broke their ability to report the news. As a kid, I would always watch sports center at night and in the morning to get updates but it's 100% unnecessary now. They still have good shows like outside the lines breaking stories but they've had to fill all the other hours with silly crap shows. Luckily, they had live sports but yeah the subscriber cuts are hurting that now too I'd think the future would look even worse as they seem to have more competition now with FS1 and the NBC channel
Posts: 7,044