Disney’s plan for ESPN is shrouded in uncertainty

[Gwedd]

Looks like Disney is having second thoughts about it's portfolio. As to FESPN, whatever happens to them, they have only themselves to blame.

The article discusses a lot of other stuff, about Disney pulling out of NetFlix (which, oddly, is probably good for NetFlix, as it frees up some $200 million annually it was paying Disney), a potential Disney streaming site, etc.

But to my mind, it's worth the read, especially as to how future streaming of media content might well (and likely will) alter how we watch TV in the near future.

Disney’s plan for ESPN is shrouded in uncertainty

 

[oldrover]

<brief hijack>

I apologize... your post reminded me of an old SNL gag... now re-worked...




(we now return to the chadenfreude of Disney and EAT-ME-SPN. )

 

[Clonamery]

Looks like Disney is having second thoughts about it's portfolio. As to FESPN, whatever happens to them, they have only themselves to blame.

The article discusses a lot of other stuff, about Disney pulling out of NetFlix (which, oddly, is probably good for NetFlix, as it frees up some $200 million annually it was paying Disney), a potential Disney streaming site, etc.

But to my mind, it's worth the read, especially as to how future streaming of media content might well (and likely will) alter how we watch TV in the near future.

Disney’s plan for ESPN is shrouded in uncertainty

"The Hell it isn't..." - Bob Ley.

 

[ForThoseAboutToRock]

Looks like Disney is having second thoughts about it's portfolio. As to FESPN, whatever happens to them, they have only themselves to blame.

The article discusses a lot of other stuff, about Disney pulling out of NetFlix (which, oddly, is probably good for NetFlix, as it frees up some $200 million annually it was paying Disney), a potential Disney streaming site, etc.

But to my mind, it's worth the read, especially as to how future streaming of media content might well (and likely will) alter how we watch TV in the near future.

Disney’s plan for ESPN is shrouded in uncertainty

Very interesting to see what happens to TV over the next 3-5 years. This trend definitely signals that the bundled cable package of the 2000's won't really be recognizable by 2020.

This article in the Atlantic suggests this move by Disney signals the impending death of TV ad revenues. However, it does mention that TV ad revenue is likely to be only found in the realm of live sports. There's an industry shaping issue in how expensive the leagues are making their rights for the sports TV providers to acquire, hence the article you linked about the uncertain fate of ESPN in this new post-cable package world.

 

[XLIX]

Looks like Disney is having second thoughts about it's portfolio. As to FESPN, whatever happens to them, they have only themselves to blame.

The article discusses a lot of other stuff, about Disney pulling out of NetFlix (which, oddly, is probably good for NetFlix, as it frees up some $200 million annually it was paying Disney), a potential Disney streaming site, etc.

They lose a big expense, and they'll also lose a major source of revenue. It's not like Netflix is simply $200M per year richer. Their stock went down big time yesterday, so I don't see how this is "good for Netflix."

 

[Pessimistic Pete]

Sports is one of the only "appointment viewing" programs around anymore. The only thing you actually free up your schedule to make sure you watch.

It's also required (for me and the majority of others) to be watched live and in at WORST standard def, so these buffering/inconsistent streaming sites aren't worth the risk consistently.

If it wasn't for sports, I wouldn't have cable.

 

[Gwedd]

They lose a big expense, and they'll also lose a major source of revenue. It's not like Netflix is simply $200M per year richer. Their stock went down big time yesterday, so I don't see how this is "good for Netflix."

We'll see how that plays out. There's a lot of folks that see Disney on NetFlix as a bonus, and who won't necessarily pay more for a separate Disney app or streaming subscription. I know I won't.

 

[RedSleevesPinkStripes]

 

[XLIX]

We'll see how that plays out. There's a lot of folks that see Disney on NetFlix as a bonus, and who won't necessarily pay more for a separate Disney app or streaming subscription. I know I won't.

And there are lots of folks who get Netflix primarily (or exclusively) for Disney movies who won't need it anymore.

Don't forget, Disney includes Disney, Pixar, Star Wars, Marvel Studios (MCU), ABC, ESPN. That's a lot of good movies. And that's why Netflix stock is down about 6% since the announcement.

 

[Gwedd]

And there are lots of folks who get Netflix primarily (or exclusively) for Disney movies who won't need it anymore.

Don't forget, Disney includes Disney, Pixar, Star Wars, Marvel Studios (MCU), ABC, ESPN. That's a lot of good movies. And that's why Netflix stock is down about 6% since the announcement.

I disagree. The fan boyz will build up the Star Wars & Marvel crap, but there's a minority who actually watch them. Where the dollars come from is those same fan boyz seeing the film multiple times, and them buying the merchandise to decorate their bedrooms in their mom's basements. But I digress.

As I said, we'll see. 6% in a day is lot for a day. But you invest in stocks for the long haul. Let's see what happens over the course of a year. It's like evaluating draft picks. You won't often get an accurate read on them until the end of their rookie contract. Then you can evaluate them.

But I do have a personal bias. I despise everything Disney. Ever since Disney replaced their long time workers with foreigners, and forced those being replaced to train those same foreigners, or lose their severance pay, Disney has been dead to me.

 

[TheBostonStraggler]

Sports is one of the only "appointment viewing" programs around anymore. The only thing you actually free up your schedule to make sure you watch.

It's also required (for me and the majority of others) to be watched live and in at WORST standard def, so these buffering/inconsistent streaming sites aren't worth the risk consistently.

If it wasn't for sports, I wouldn't have cable.

Competition has provided cheaper bandwidth with increasingly stable throughput.
Encoding improvements are here and near. User platform ability to process encoding is increasing. And most importantly, with decreasing corded customers websites are improving their concurrent capabilities (with DVR the ability to get your product's image in the corner of a video window that can't be forwarded(or difficult to) is, IMHO, the ad business future.

But one free technology that is fool proof - bufffering. Go do something and let 15 minutes of buffer. Solved. But cable is simpler and most reliable _ i get that side of it

 

[XLIX]

I disagree. The fan boyz will build up the Star Wars & Marvel crap, but there's a minority who actually watch them.

whuh huh whuh??!? There's a "minority that actually watches" Star Wars and MCU movies???

To say nothing of the typical Pixar movie or those new cartoons like Frozen.

But I do have a personal bias. I despise everything Disney. Ever since Disney replaced their long time workers with foreigners, and forced those being replaced to train those same foreigners, or lose their severance pay, Disney has been dead to me.

Oh, they're total scumbags for doing that. It shouldn't be legal. But that issue has nothing to do with this one.

 

[deroc5050]

And there are lots of folks who get Netflix primarily (or exclusively) for Disney movies who won't need it anymore.

Don't forget, Disney includes Disney, Pixar, Star Wars, Marvel Studios (MCU), ABC, ESPN. That's a lot of good movies. And that's why Netflix stock is down about 6% since the announcement.

I actually only have Netflix for the Netflix originals. I don't watch much but Netflix has a **** tone of exclusive content now and some big new IP's. Netflix will be just fine.. I am shocked that Disney is doing that but I don't give too ****s. The Marvel IP's could hurt Netflix i will admit. Other than that Netflix will be fine.

 

[Joker]

Hi there, sports fans!

 

[Bill Lee]

What the ESPN streaming service will offer says:

The Walt Disney Co. will launch an independent ESPN streaming service in 2018, but viewers will still need a subscription to a cable bundle to access content airing on ESPN channels.

In effect, Disney DIS, +0.93% will build out the current WatchESPN streaming app to include access to other subscription streaming packages, and sell access to some content not airing on its ESPN networks on a subscription basis. Disney Chief Executive Robert Iger suggested Tuesday afternoon that viewers will be able to pay to stream specific games and potentially new packages that ESPN builds.

So from the sport point of view the recent announcement is not significant, because ESPN still isn't addressing the cord cutting phenomena. All they are doing is beefing up the WatchESPN app. They aren't changing the way they do business.

They just don't get it. Most people are not going to pay hundreds of dollars a month for content they don't watch. The value is not there. People will find other things to watch, or other ways to watch sports.

Right now, they're leaving money on the table. There's some ESPN content I would pay for on an iTunes-like, pay-for-play model. For instance I'd like to see the recent "30 for 30" series. But I'm not going to carry a cable TV subscription and subscribe to their streaming service too just to see it.

ESPN/Disney has a death grip on the cable TV bundle model. Fewer and fewer people will pay for the bundle. Streaming will compete for sports content so the price will keep going up. Higher costs and lower subscribers means higher cost per subscriber which means even more will decide it's not worth it. Others will decide piracy is the way to deal with it. Rinse and repeat.

Hi there, sports fans!

I didn't jail break my Fire TV unit but did install Kodi and I don't find myself using it... Lots of unstable streams and fear of your internet service provider cutting you off unless you use a VPN, which adds even more instability.

 

[XLIX]

I actually only have Netflix for the Netflix originals. I don't watch much but Netflix has a **** tone of exclusive content now and some big new IP's. Netflix will be just fine.. I am shocked that Disney is doing that but I don't give too ****s. The Marvel IP's could hurt Netflix i will admit. Other than that Netflix will be fine.

Despite some people in here thinking that Star Wars and the MCU are worthless, it was reported today Netflix is making proposals to Disney to keep those 2 IP's. I don't see why Disney would agree to such a deal, though.

 

[RedSleevesPinkStripes]

What the ESPN streaming service will offer says:

So from the sport point of view the recent announcement is not significant, because ESPN still isn't addressing the cord cutting phenomena. All they are doing is beefing up the WatchESPN app. They aren't changing the way they do business.

They just don't get it. Most people are not going to pay hundreds of dollars a month for content they don't watch. The value is not there. People will find other things to watch, or other ways to watch sports.

Right now, they're leaving money on the table. There's some ESPN content I would pay for on an iTunes-like, pay-for-play model. For instance I'd like to see the recent "30 for 30" series. But I'm not going to carry a cable TV subscription and subscribe to their streaming service too just to see it.

ESPN/Disney has a death grip on the cable TV bundle model. Fewer and fewer people will pay for the bundle. Streaming will compete for sports content so the price will keep going up. Higher costs and lower subscribers means higher cost per subscriber which means even more will decide it's not worth it. Others will decide piracy is the way to deal with it. Rinse and repeat.

I didn't jail break my Fire TV unit but did install Kodi and I don't find myself using it... Lots of unstable streams and fear of your internet service provider cutting you off unless you use a VPN, which adds even more instability.

I was thinking about getting one but when we used it at my cousin's house, nothing worked or wasn't HD

 

[deroc5050]

Despite some people in here thinking that Star Wars and the MCU are worthless, it was reported today Netflix is making proposals to Disney to keep those 2 IP's. I don't see why Disney would agree to such a deal, though.

I didn't even realize Star Wars movies were on Netflix. Obviously Star Wars is a huge IP but I doubt it would hurt Netflix much not having it. If Netflix was smart they would keep making there own content, and I am sure they will. After a few more years Netflix could have 50 or 60 new series. And the more they make the better they will get over time. Soon I would say they could even start investing in Game of Thrones type of content.

 

[PatsWickedPissah]

Netflix's own content is winning awards and eyeballs. They are in a much better position than espn who is gonna cost Disney ~ $2B.

 

[Deus Irae]

I didn't even realize Star Wars movies were on Netflix. Obviously Star Wars is a huge IP but I doubt it would hurt Netflix much not having it. If Netflix was smart they would keep making there own content, and I am sure they will. After a few more years Netflix could have 50 or 60 new series. And the more they make the better they will get over time. Soon I would say they could even start investing in Game of Thrones type of content.

Network TV evolved into Cable Network TV, and the evolution is now towards Internetwork TV. As with what happened with cable, what's happening with the internet will eventually end up screwing over the consumer.