Movies and TV ESPN reportedly slated for another huge round of layoffs - Page 6

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.

rabblerouser · 03-07-2017, 06:21 AM

Quote:

Originally Posted by Frazod

The only time I watch ESPN now is if one of my teams is actually playing in a game they're broadcasting. I watch MLB Network for baseball news and NFL Network for football news, and I don't give a **** about anything else. Especially their horseshit liberal agenda pushing.

They can kill the whole damned thing as far as I'm concerned.

Agree 100%

**** ESPN and their Mickey ****ing Mouse agenda.

It literally never gets turned on in this house.

rabblerouser · 03-07-2017, 06:25 AM

Quote:

Originally Posted by ThaVirus

I wasn't expecting an answer so thanks.

Sounds a lot like you guys are being snowflakes.

Nah, just tired of the bullshit.

It's called a CHOICE. ESPN made their choices; now, their former viewing audience is letting them know exactly what they think.

It's all about choices. I'm cool with never watching ESPN again. And I have to believe that they're cool with me not watching.

The fact that they can't afford to lose any more viewers isn't my ****ing problem...

jspchief · 03-07-2017, 06:26 AM

Quote:

Originally Posted by 'Hamas' Jenkins

It has nothing to do with politics and everything to do with cord-cutting and ala carte TV packages. This is happening to every cable network.

Yep. The cheapest direct tv package is basically the 2nd tier package minus the ESPN channels. You don't even need to be a cord cutter to be a lost subscription now.

Of course, the quality of their programming plays into this. Politics aside, ESPN just isn't very good anymore outside of live sports. It used to be my most watched channel, now I can't stand it.

rabblerouser · 03-07-2017, 06:35 AM

Quote:

Originally Posted by jspchief

Yep. The cheapest direct tv package is basically the 2nd tier package minus the ESPN channels. You don't even need to be a cord cutter to be a lost subscription now.

Of course, the quality of their programming plays into this. Politics aside, ESPN just isn't very good anymore outside of live sports. It used to be my most watched channel, now I can't stand it.

Yup.
Even MNF blows.

I

Eleazar · 03-07-2017, 07:04 AM

Quote:

Originally Posted by rabblerouser

Yup.
Even MNF blows.

I

True. We would be doing a disservice to the discussion if we didn't mention that ESPN completely ruined Monday Night Football.

**notorious** · 03-07-2017, 07:29 AM

Quote:

Originally Posted by Pasta Giant Meatball

No AMC, so......FAAAAAIL

Exodus cleans up that mess.

scho63 · 03-07-2017, 08:05 AM

If I watch 2 hours a month of ESPN, that might be the most. Rarely watch.

**notorious** · 03-07-2017, 08:13 AM

I used to listen to their radio station for 8-9 hours a day while working. Mike and Mike, Cowherd, then Van Pelt and Russillo.

Mike and Mike sucks ass now, Cowherd left, and the only show worth a **** anymore is Russillo and Kanell. I might listen in on Le Batard for a goofy change, but that grows old quickly.

The quality has declined steeply in 2 short years. I can only assume that the TV station is similar since I don't watch it.

Fox has picked up the slack with Dan Patrick and Cowherd. They have 6 hours of my day now.

BigBeauford · 03-07-2017, 08:19 AM

ESPN just assumed they would retain their middle aged white guy goatee sporting cargo short wearing audience, while pandering to every other demographic.

**Anyong Bluth** · 03-07-2017, 08:21 AM

Quote:

Originally Posted by HemiEd

Bring back Austrailian rules football!

Win!

**loochy** · 03-07-2017, 08:32 AM

Quote:

Originally Posted by BigBeauford

ESPN just assumed they would retain their middle aged white guy goatee sporting cargo short wearing audience, while pandering to every other demographic.

So they Hillary Cintond it?

BigBeauford · 03-07-2017, 08:37 AM

Quote:

Originally Posted by loochy

So they Hillary Cintond it?

Pretty much. Also cable is going to be the next generations "cigarettes". After seeing its contribution to obesity, and the ability to warp people's minds (political division ect) the numbers will keep dropping.

KCTitus · 03-07-2017, 09:01 AM

Many years ago, the one show I watched was NFL gameday or whatever they called it. Typically, with Berman there was one or two others. I think the last time I saw a promo there was like 7 people on the desk. Seven? you need seven people to do that show now?

And I figure every single one of those people are making around 1M per year. Pretty easy to cut that fat. The only original programming I ever liked was Playmakers and that was in ESPN's pre-PC days...their other shows like 'Facts vs. Volume' is just garbage. Oh yeah, and the politics. pfft.

If there were any other way to get to the live events that didnt require me using a VPN in Europe, and I would do it in a heartbeat.

ThaVirus · 03-07-2017, 09:20 AM

NFL Live is pretty good. That's the only one of their programs I tune into now.

I don't even watch Sportscenter anymore. I used to watch it during football season religiously to see as many highlights as possible, but they'll just talk over the same three or four highlights looped over and over again. Shit used to infuriate me.

Do they have some type of copyright issue with the NFL not allowing them to use anymore than a few clips per show?

baitism · 03-07-2017, 09:30 AM

I love how that youtube TV doesn't have CNN.

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

03-07-2017, 08:05 AM	#82
scho63 Politically Incorrect Join Date: Feb 2009 Location: Scottsdale, AZ Casino cash: $-720000	If I watch 2 hours a month of ESPN, that might be the most. Rarely watch. __________________ *"The only difference between sex for free and sex for money is that sex for free costs you a WHOLE LOT more!"* ~Redd Foxx~ ~~2018 2019 2020 20212022 2023~~ 2024 Adopt a Chief - Clark Hunt and Brett Veach "The men who drafted Patrick Mahomes"
Posts: 54,928

03-07-2017, 08:13 AM	#83
notorious Supporter Join Date: May 2005 Location: Who knows? Casino cash: $-754116	I used to listen to their radio station for 8-9 hours a day while working. Mike and Mike, Cowherd, then Van Pelt and Russillo. Mike and Mike sucks ass now, Cowherd left, and the only show worth a **** anymore is Russillo and Kanell. I might listen in on Le Batard for a goofy change, but that grows old quickly. The quality has declined steeply in 2 short years. I can only assume that the TV station is similar since I don't watch it. Fox has picked up the slack with Dan Patrick and Cowherd. They have 6 hours of my day now.
Posts: 88,500

03-07-2017, 08:19 AM	#84
BigBeauford MVP Join Date: Oct 2012 Location: Lenexa, KS Casino cash: $1646717	ESPN just assumed they would retain their middle aged white guy goatee sporting cargo short wearing audience, while pandering to every other demographic.
Posts: 14,404

03-07-2017, 09:01 AM	#88
KCTitus Archivist Join Date: Aug 2000 Location: The Ethernet Casino cash: $9882732	Many years ago, the one show I watched was NFL gameday or whatever they called it. Typically, with Berman there was one or two others. I think the last time I saw a promo there was like 7 people on the desk. Seven? you need seven people to do that show now? And I figure every single one of those people are making around 1M per year. Pretty easy to cut that fat. The only original programming I ever liked was Playmakers and that was in ESPN's pre-PC days...their other shows like 'Facts vs. Volume' is just garbage. Oh yeah, and the politics. pfft. If there were any other way to get to the live events that didnt require me using a VPN in Europe, and I would do it in a heartbeat. __________________ Anything you post on this BB can and will be used against you...
Posts: 26,199

03-07-2017, 09:20 AM	#89
ThaVirus 5 o’clock free crack giveaway Join Date: Sep 2007 Casino cash: $-1607631	NFL Live is pretty good. That's the only one of their programs I tune into now. I don't even watch Sportscenter anymore. I used to watch it during football season religiously to see as many highlights as possible, but they'll just talk over the same three or four highlights looped over and over again. Shit used to infuriate me. Do they have some type of copyright issue with the NFL not allowing them to use anymore than a few clips per show?
Posts: 46,919

03-07-2017, 09:30 AM	#90
baitism Starter Join Date: Jul 2005 Location: Overland Park, KS Casino cash: $3619551	I love how that youtube TV doesn't have CNN.
Posts: 271