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Beyond the Rapids
Join Date: May 2003
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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. |
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#16 |
In Search of a Life
Join Date: Jul 2009
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I watch alot of live sports on ESPN, but I can't think of the last "show" I watched on there. Mostly due to being at work during that time, but it seems to be played out.
I enjoy some of their xm shows |
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#17 | |
Like I woke up in Wonderland..
Join Date: Oct 2005
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These articles always pop up focused on ESPN, and the hate spews (i.e., this thread).
This is going on across the entire cable industry and has little to do with the content of that one channel. ESPN is probably one of the safest commodities in television.
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#18 |
In Search of a Life
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Pretty much.
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#19 |
MVP
Join Date: Oct 2011
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And yet Linda Cohn still pulls a paycheck.
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#20 |
Are you ready to Rumble?
Join Date: Apr 2006
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Hopefully they don't dump the WSOP, 2017 is the last year they are under contract. Poker is a declining in popularity at least on television so it's kind of expected it will have to find another home. But it's super cheap programming! Come on ESPN, renew renew.
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#21 |
Supporter
Join Date: May 2005
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I only watch ESPN during the college football season. I listen to an hour of Rusillo every day.
Everything else is not to my liking. They try to drive the narrative way more than they should. |
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#22 |
In Search of a Life
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I'm not sure how accurate that is. Yeah cable across the board is suffering, but ESPN is saddled with some beyond terrible tv deals that other networks don't have to deal with.
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#23 | |
Fish are scared of me
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Quote:
Bingo Right on I'm with you there ! |
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#24 |
Special Teams ACE!!!
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Chuck keeping it real...
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#25 | |
Don't Tease Me
Join Date: Dec 2000
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Quote:
Since being direct is in my nature: KChiefs1, are you trying to imply that Espn is too liberal for American Sports broadcasting? Or was your comment just a CPlanet lexicon-ish type comment?
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#26 |
Fish are scared of me
Join Date: Nov 2001
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Don't watch ESPN since Erin Anderson left
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#27 |
Special Teams ACE!!!
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I love what Kenny said, too. "Go to sleep, wake up, and you see the same dude."
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#28 |
Don't Tease Me
Join Date: Dec 2000
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I don't watch Espn much because it's become to East/West Coast driven as well as too "empty". Quick one liners and fake debate instead of actual stories that are interesting.
If flyover country isn't important enough for them to cover then it isn't worth me watching. A few years ago I wouldn't have considered signing up for a cable package without Espn in it. Now outside of an occasional game broadcast, I don't ever even turn to Espn.
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#29 |
He's Mahomie!
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Chris Berman timed the market perfectly!
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#30 |
5 o’clock free crack giveaway
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