Movies and TV ESPN reportedly slated for another huge round of layoffs - Page 2

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, 04:38 PM

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

sedated · 03-06-2017, 04:41 PM

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.

O.city · 03-06-2017, 04:44 PM

Quote:

Originally Posted by sedated

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.

Pretty much.

JohnnyHammersticks · 03-06-2017, 04:47 PM

And yet Linda Cohn still pulls a paycheck.

BWillie · 03-06-2017, 04:55 PM

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.

**notorious** · 03-06-2017, 04:58 PM

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.

BryanBusby · 03-06-2017, 05:00 PM

Quote:

Originally Posted by sedated

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.

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.

Hog's Gone Fishin · 03-06-2017, 05:07 PM

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.

Agreed

Bingo

Right on

I'm with you there !

**RealSNR** · 03-06-2017, 05:08 PM

Chuck keeping it real...

Mr. Laz · 03-06-2017, 05:09 PM

Quote:

Originally Posted by KChiefs1

ESPN has shifted too far left for mainstream America.

Quote:

Originally Posted by ThaVirus

Doubt that has anything to do with the layoffs

Quote:

Originally Posted by ThaVirus

Why would it?

Too many women personalities? Because they showed Michael Sam kissing his boyfriend?

Quote:

Originally Posted by Dave Lane

Sarcasometer needs adjusting on my part??

Still not sure what this means.

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?

Hog's Gone Fishin · 03-06-2017, 05:09 PM

Don't watch ESPN since Erin Anderson left

**RealSNR** · 03-06-2017, 05:09 PM

I love what Kenny said, too. "Go to sleep, wake up, and you see the same dude."

Mr. Laz · 03-06-2017, 05:16 PM

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.

**MahiMike** · 03-06-2017, 05:19 PM

Chris Berman timed the market perfectly!

ThaVirus · 03-06-2017, 05:22 PM

Quote:

Originally Posted by RealSNR

I love what Kenny said, too. "Go to sleep, wake up, and you see the same dude."

That was pretty funny. Those guys have a lot of fun.

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, 04:38 PM	#16
O.city In Search of a Life Join Date: Jul 2009 Casino cash: $2754064	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
Posts: 81,236

03-06-2017, 04:47 PM	#19
JohnnyHammersticks MVP Join Date: Oct 2011 Location: Chandler AZ Casino cash: $2731254	And yet Linda Cohn still pulls a paycheck.
Posts: 12,787

03-06-2017, 04:55 PM	#20
BWillie Future NBA Finals MVP Join Date: Apr 2006 Location: Earth Casino cash: $2441241	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. __________________ Who wants free money? Use the link below to sign up at Bovada, BetOnline, Black Chip Poker and Ignition. Contact me for private deals, spot bonuses, possible rakeback or any questions! Bovada, Ignition, BetOnline, Black Chip Poker: baldeaglepoker.com Bovada Poker is back! Get up to $500 poker deposit bonus.
Posts: 45,933

03-06-2017, 04:58 PM	#21
notorious Supporter Join Date: May 2005 Location: Who knows? Casino cash: $2935884	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.
Posts: 83,361

03-06-2017, 05:09 PM	#26
Hog's Gone Fishin Fish are scared of me Join Date: Nov 2001 Casino cash: $1710477	Don't watch ESPN since Erin Anderson left
Posts: 40,342

03-06-2017, 05:16 PM	#28
Mr. Laz Don't Tease Me Join Date: Dec 2000 Location: KS Casino cash: $11047037	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. __________________
Posts: 95,626

03-06-2017, 05:19 PM	#29
MahiMike He's Mahomie! Join Date: Aug 2001 Location: Jax, FL Casino cash: $10023443	Chris Berman timed the market perfectly! __________________ 99.9%
Posts: 17,387