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Needham: 20M 'Super Fan' Homes Would Pay $30 Monthly For ESPN

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Jul 23, 2013.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    Needham: 20M 'super fan' homes would pay $30 monthly for ESPN - FierceCable (click for full article)

    by Steve Donohue - July 15, 2013

    Only 20 million ESPN "super fan" homes would be willing to pay $30 monthly for the sports network if distributors create sports tiers and the network is forced to hike subscription fees to recoup lost ad revenue, according to Needham analyst Laura Martin.


    In a report last week titled the "Future of TV," the veteran cable analyst said entertainment networks would suffer if cable operators and satellite TV providers unbundle traditional subscription packages and create sports tiers. "If sports leave the bundle, we estimate that many of the 20 million households that are heavy sports viewers today would disconnect the remaining entertainment bundle, thereby further pressuring ecosystem profits," Martin said. She estimated that the pay TV industry would lose $13 billion in annual revenue from unbundling, including a $10 billion drop in subscription revenue.


    Some distributors are paying more than $35 monthly--or half of their programming expenses--on sports networks, according to Needham. The firm noted that ESPN's networks cost $6 monthly. Some of the top regional sports networks cited in the report included YES Network ($3.20 monthly); Comcast SportsNet Washington ($4.35); Fox Sports North ($4.25); Fox Sports Southwest ($4); and MSG (3.50).


    Martin noted that increased sports programming costs are being driven by the rights deals networks strike with leagues like the NFL and Major League Baseball. She said unbundling would hurt the industry and that distributors and content owners should work to find common ground. "We think the best solution to this hard problem is to find a negotiated compromise that allows both content and distribution to win and the bundle to stay intact, or grow. We can find no math where unbundling is the best economic answer," Martin added.
     
    Last edited: Jul 23, 2013
  2. ChrisG8

    ChrisG8 Well-Known Member

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    If $30/month is the necessary price for ESPN, count me out, I won't pay that, no matter how ESPN structures the service.
     
  3. CatfishRivers

    CatfishRivers Well-Known Member

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    So this is another reason we likely won't see "unbundling" of traditional cable TV subscription packages anytime soon.
     
  4. CatfishRivers

    CatfishRivers Well-Known Member

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  5. CatfishRivers

    CatfishRivers Well-Known Member

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    Fox Sports 1 comes to 'all major distributors' Saturday, mobile app on hold (click for full article)

    by Richard Lawler - August 16, 2013

    Saturday morning at 6AM Speed TV turns out the lights for the last time as Fox replaces it with a new 24-hour sports channel: Fox Sports 1 (FYI: Fuel TV will become Fox Sports 2, and FXX launches September 2nd as the new home of Always Sunny, The League and Totally Biased). Why? Because every network needs its own sports channel to fill out the package, like Disney / ABC including ESPN and Comcast / NBC Universal's NBC Sports.

    Negotiations this week wrapped up last-minute deals with holdouts DirecTV, Dish and Time Warner Cable, ensuring the channel will be available on all "major" distributors (about 90 million homes) across the country.

    What isn't quite ready for prime time is the accompanying Fox Sports Go app, its attempt at a TV Everywhere experience akin to WatchESPN and NBC Sports Live Extra. Rep Chris Bellitti tells Variety that "one of the most complex TV Everywhere apps ever created" just needs a little tweaking before it arrives on the web, iOS and Android. It will have live streaming video, plus scores, news and more for sports fans. You can check after the break for a list of the content FS1 will carry -- UFC: Shogun vs. Sonnen caps Day 1 -- and a preview trailer, or hit the link below to doublecheck its channel on local providers.
     
    Last edited: Aug 16, 2013

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