ESPN Has Seen the Future of TV
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I've used Sling in the past, it can be a good bridge if you've cut the cable and want to hop back in because you miss it, but besides the delivery mechanism — I can bring my own device and it streams over the Internet — I don't see that much of a differentiator from cable. With either package of Sling, I'm still getting a bunch of channels I have no interest in, and while the price may be less per month than cable, it still _feels_ like 70% of the money I'm paying is going towards channels I have absolutely no interest in. Not to mention all the commercials I have to watch with it, not just in live viewings (because that's part of the stream, I get that), but even in on-demand things.
I ask this honestly: is there something I'm missing here? People that I know that haven't cut cable because they would miss this or that laud these products as "the thing that may finally get them to cut cable," but this feels like cable just over streaming.
Why does that bother people so much? The incremental cost of delivering you a new channel is zero, so it makes sense to just deliver all of them. Where is the wasted money that's implied by a statement like this? If the average person watches 3 channels, and provider has a choice: charge $30 per channel and let everyone pick only the ones they want, or just charge $90 and let everyone watch whatever they want. I'd rather not be forced to choose the few channels that I'm locked into.
I'm not suggesting whether ESPN is or is not worth that kind of premium but it's also not surprising to me that they're suffering this type of subscriber loss. More importantly, ESPN subscribers are CATV (or satellite, etc) subscribers which means these companies are also hemoraging subscribers.
In the case of CATV companies, the equipment and cable plant are huge expenses and these companies usually build out more plant financed on the assumption that there will be large cash flow. The cost of the plant isn't going down even if there are no television subscribers. I'd expect to see the cost of unbundled Internet services from these companies gradually approach the price of their "double-play" offerings (TV + Internet).
I guess I _was_ just hoping that the coming revolution was something like a "pay per channel" thing, where channels set what they believe is a fair value to charge monthly and I can decide a la cart which ones I want. I get that the cost per channel would be higher, but with the ability to pick and choose, with no obligation into buying into the bigger picture, I feel like there's at least be more pressure for the networks to produce quality content. I know that's probably small-town thinking, but it's a hope.
The numbers in this article of "ESPN subscribers" is not equal to "people that watch ESPN," and I get why switching to a "only selling to people who are genuinely interested" model is absolutely terrifying — because the numbers inflate when subsidized across the entire subscription populace. That's the insurance model, and I don't see cable/Sling as entertainment insurance.
Not sayin' you're wrong, I'm just saying I wish there was another option that wasn't buying shows on iTunes if I just want one channel's programming.
http://cdixon.org/2012/07/08/how-bundling-benefits-sellers-a...
But they won't make more money if they keep driving more people off.
If you're interested in more than a couple channels then it's going to be cheaper to get a package through someone like Playstation VUE or Sling. You're paying anywhere from $20-$75 for one of those services and once you put it on top of your monthly internet how much are you really even saving vs. a Double Play from a cable provider?
I don't think of it as "I'm paying for x channels I don't watch," I think of it as "I'm paying $35 for these channels that I do watch, and I'm happy to pay that."
If you are paying $15 or $50 or $200 per month for TV, do you feel you getting adequate value? Are you getting the shows you want to watch?
An interesting thing about nearly all subscription services (cable, YouTube Red, Netflix, Sling, etc) is because they are fixed cost they have a built-in volume discount: the more you watch, the less you pay per hour.
So if you pay $100/mo for all your services, and watch a total of 2 hours a month, that costs you $50/hr. If you watch 6 hours a day, it costs you about $0.55/hr.
Let's say you're paying $185/mo for cable, and $15/mo for Netflix, but watch them evenly (3 hours a day each). Now cable is costing $2.03/hr and Netflix costs $0.16/hr. Are you getting value for the time? Are the shows you're watching on cable really worth paying 12 times more (plus being forced to watch commercials) than the ones you're watching on Netflix?
Your original point was about paying for stuff you didn't watch, but when you think of it in terms of value per hour, if you are watching 6 hours of content you want to watch, you are paying $0.55/hr. It doesn't matter if you get 6 channels or 600, the cost per hour of content is the same to you.
It's a different question you have to ask yourself if the service adds 200 channels (that you don't watch) and ups the cost so now it costs you $0.65/hr to watch the exact same content you were watching before: are you still getting adequate value for that price? If so, continue paying.
I guess my pitch isn't even abolishing cable packaging all together. If people like it and want it, then let them do it. But there's a lot of room between a cable subscription and wanting one or two channels. If ESPN makes $6/mo off subscriptions, and I don't have cable but want ESPN, $6/mo becomes a lot more enticing than $25-40/mo.
Again, it's sort of how HBO works. You can get it with your cable or get it on its own. And I'm sure it's a contract thing, but at this point it just feels like more money than what they're already getting; that they may find they gain more subscribers in the transition than they lose, or at least find more eyeballs that are actually watching versus those inflated subscription numbers from "people that have cable with ESPN attached" numbers.
But I pay just about the same for it as I paid for a cable package...so at the end of the day I'm not sure what the victory is other than not having to use a set top box designed in the aughts.
Even if you keep it on all the time it's (for now) cheaper than cable.
Comcast has you by the balls
Netflix and streaming services don't really offer this because while other people may have watched what you're currently watching, your viewing experiences aren't synced up. You can watch whatever you want when you want and so the chances that you're watching the same thing at the same time, synced with others, is very small. Though freedom of choice is the major strength of streaming services and I love them for it, you lose that vague connection of sharing a singlular experience - watching that show, at that time - with thousands of others.
Maybe if Netflix were to implement a feature that indicated how many people were watching a show or movie at any given time it'd restore the communal aspect.
So maybe stream it at a time/schedule announced ahead of time, and then give the ability to view any of the previously streamed content. Seems like most of the best of both worlds.
With Youtube it would actually be pretty simple because you can embed an iFrame for the video and manipulate the timestamp, but with other streaming sites I imagine it would be harder.
I encounter it while watching hockey constantly.
I'm a cord cutter. I follow a single NFL team. They are on MNF maybe once a year. I'd pay $25 or so to watch that game (legally) at home rather than go to a bar or deal with a flaky illegal stream. They're leaving my money on the table.
ESPN (and many other media companies) are stuck and most likely in revenue-maintenance mode.
Not being subjected to network news like MSNBC, Fox, and CNN is another fine bonus.
Paying for ESPN on cable, and never watching it was a nudge to cut the cable.
I also find that I watch less, because I'm actively finding anything I want to watch, rather than passively channel surfing or just "seeing what's on".
I honestly don't see how anyone can spend the average 40 hours a week "watching TV" now. My time is so crammed full of things having priority over "sit and watch" - because I'm evaluating the content & time before I watch, and comparing it to the value of what else needs doing. I'll get in a few hours a month of video, usually movies because I perceive a need to "be done with it" rather than having more to see and little time to see it.
Alas, there's nothing like that. :o(
I have to either get some weird NHL package, which only gets me out-of-market games since those other games are exclusive to whatever local channel may have bought the rights, and since you have different broadcasters to things like the Olympics depending on where you live, and which year it is, you don't know where to go for those either.
Surprisingly, smaller sports franchises that haven't sold off all their media rights typically do this much better. Handball for instance is pretty easy to get a live stream of, because they're so starved for attention that they put it out there just to get people to watch the thing in the first place.
In short, I would love a Netflix for sports that would also do live streams. Viasat in Europe comes close, but their subscriber deals are expensive, they don't have all the rights, and their apps are terrible.
There's no legal way to get live access to sporting events, since those are held by TV channels that have a vested interest in you buying back into a bundle (especially for the Rangers -- their ownership structure includes the TV channel that airs their games).
However, you can get delayed games. The out-of-market package puts up replays 48h after the game broadcast finishes, and various online shops have a curated selection of games each year[0].
Basically, the whole situation is a toxic mess that's built on a crumbling foundation. Teams are owned by cable operators that retain the exclusive live broadcasts for their sports networks (or sell the rights at a premium to national channels), and have no incentive to step outside the bundle. It's a bubble, through-and-through.
[0] e.g.: https://itunes.apple.com/us/tv-season/nhl-games-of-the-year-...
Yes, exactly. I'd love there to be an iTunes/Netflix for sports, but understand why there isn't.
I've gotten by with some shady tricks, like buying access to NHL on the playstation because they don't geoblock access like they do on NHL.com or on the iOS apps, and only use whatever country a user listed as their origin. I've still paid for the access, and I'm happy to pay for it, but it's literally a situation of me not being able to access these things the way you probably should, simply for reasons. I always try to find a way to pay for access, and usually Viasat will have what I'm looking for. When all else fails I go for some shady live stream from Russia or something. It's certainly not ideal.
(I stopped having a proper TV with a tuner about a decade ago, so just getting a cable package isn't an option.)
Except it's near-useless, since you need to authenticate through a cable provider.
Seems to me that most people are just interested in an ideology and you only consume that ideology and we now have 2016.
Context: soccer is the main sport, TVs buy the rights to transmit, and pays a big money for the whole season. But the two biggest teams didn't sold their rights, so TV can transmit the whole championship except for those two teams.
When the confront of those two teams was about to happen, commercial controversy arose: the teams didn't accept a one-time-contract to that match because they estimated to receive 3x more from youtube live stream. The league had a say, the tv, the teams... bureaucratic problems prevented the have from happening at the expected day, but it happened a week later.
Live at youtube, enough quality, free, ad sponsored.
League wasn't happy (the championship worths a lot less without those teams, so smaller teams received a smaller share this year). Tv was more or less, as it profits selling pay-per-view or live transmission.
Public was happy. Those who wanted to go to the stadium, went and were happy too. Teams got bigger money and were happier than never.
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I cutted cable because I was paying >$100 to watch just 4 or 5 channels. Would they have some kind of subscription, I would surely go for them.
I'm still waiting when cables (or channels companies) will allow me to subscribe for just specific channels.
In the same paragraph it mentions that ESPN pays more than $100 million for the rights to a single Monday Night Football game. What I don't see mentioned is that the price of content should be a function of how many people watch that broadcast. And disregarding the fact that some of these prices are locked in from long-term contracts, if ESPN loses subscribers, fewer people will watch the content and the price broadcasters will bid in the future for that content will go down.
Cord cutters aren't all switching to OTA antennas either, so the usual broadcast networks should be bidding less on the content as well. It seems like an equilibrium will eventually be reached letting ESPN survive with fewer subscribers, which makes the $15 a month standalone streaming channel more feasible. The real loser in all this would be the sports leagues that can no longer command the same price for broadcast rights.
Time Warner tried giving me a free year of basic cable and each month all of the random fees and surcharges were placed on me. Bills weren't predictable. All of a sudden the price would change 1 month and they have every right to do so. So yeah, I'm never trying that experiment again.
In the end, as long as ESPN has games to broadcast, they will no doubt have viewers and subscribers. Aside from that? People unsubscribe to ESPN either because they never wanted it to begin with OR because they honestly lack programming. Football has Sunday Ticket and Basketball has NBA GameTime.
Outside of live sports, IMO Scott Van Pelt is the last great sports commentator on ESPN and everyone else on the show (Stephen A Smith, Skip Bayless) and other people I don't care to remember the name of, sucks. The commentating and the topics they discuss are now more reality TV than it is about sports. Why did Kaepernick kneeling get so much airtime? Are they same demographic of people who watch sports on ESPN the same who would care? I felt like any coverage of that should have been on Bravo or E.
Also Bill Walton's coverage of NCAA Basketball seriously makes me want to shut the damn game off.
Since the only way to get ESPN right now is to be a cable subscriber, it means two things: everyone that still wants ESPN still has ESPN (because they still have cable), and all of the people unsubscribing no longer want ESPN. Note: To keep this away from pricing issues, I am excluding "cannot afford or do not want to pay the price of cable but still want ESPN" from people that truly "want ESPN".
The true number of ESPN subscribers as a percentage of cable subscribers is likely going up. The cable companies probably know what this number is (feedback from set top boxes), but as far as I know don't share this data.
I would assume their cost to get rights to events seems would be somewhat based on their published subscriber numbers. Since those are the wrong numbers, they are getting hit in two ways: the subsidy from non-ESPN viewers that no longer subscribe to cable is going away, and the cost-per-subscriber of broadcast rights is going up because number of subscribers (according to their broken metric) is going down.
Had they just always charged for ESPN separately (meaning 100% of people who paid for ESPN wanted to pay for ESPN) it seems like neither of these things would be a problem, though, they'd have lower revenue. The market will correct itself eventually, and ESPN will either adapt by cutting their costs or they'll eventually go bankrupt.
It works fine for sporting events that are expected to have fairly low viewership or for content like Netflix which gets preprocessed and pre delivered to closer-to-viewer nodes. If I'm trying to watch Clemson vs Alabama in the national title game and the feed goes out because so many people are trying to watch it at the same time I'm not going to be a happy camper.
Step 1) Get pestering phone calls to change your package for 3-5 months for FREE to include all of the movie channels
Step 2) Promotion runs out and you want to go back to your old package, but it's now $5 / month more expensive than it used to be
Step 3) Start refusing the free package change calls and watch the calls just keep...on...coming.
Plus, with Direct I can't use my Tivo Bolt...which is giving up a lot because it's so much better than any of their DVR tech.
When the mass popular switch to digital photography was imminent, Kodak still had enormous sales from film - mostly sold & processed thru retail stores, which relied on the product/service to generate foot traffic (one visit to buy film, one to drop it off for processing, one to pick up prints - with likely tangential purchases while the customer was there). Retailers saw Kodak starting to make noise about switching to digital, which would have (and eventually did) destroyed that very lucrative sales model - so the retailers threatened Kodak with "if you push digital, we'll drop your products" ... so rather than sacrificing the cash cow, Kodak slowed the digital roadmap to >5 years to keep retailers happy, failing to notice that retailers weren't the actual end customer making the actual decision to buy film. Competition emerged from bizarrely non-sequitur competitors, like printer & computer manufacturers Epson & Hewlett-Packard - leaders in markets that had nothing to do with photography. Bottom-end digital camera prices fell to around $100, UI/UX improved, picture-takers discovered that "digital film is free", and the whole market switched from photochemical consumables to digital capital equipment practically overnight.
ESPN and other major specialty content producers are facing the same problem. The bulk of their customers still watch via "cable TV", and cable TV providers are likely threatening to drop the ESPN-type packages entirely if they start providing serious streaming/app alternatives. That's a LOT of revenue to lose fast, so they're avoiding the big push to new media. Unfortunately for them, some other content delivery companies (like Netflix and Amazon) are seeing the potential, and putting big money into producing or negotiating highly desirable alternative content. Remember, there is a new generation coming of age who were raised playing soccer or other engaging sports instead of American football; they're looking for content that's not necessarily NFL etc, they're not so mentally tied to "TV", they want mobile content, and other non-sequitur competitors are making serious progress toward capturing their dollars where ESPN et al are reluctant to go under threat of old-model revenue being abruptly cut off.
If ESPN et al really want to survive the pivot that killed Kodak, they need to call Comcast et al's bluff, pivot into on-demand streaming, and partner with Apple, Amazon, Netflix, etc for future survival, and make an ESPN-branded push for viewers to spend the one-time $50-150 already for a superior & enduring viewing experience. Otherwise, NFL on iTunes and World Soccer on Netflix etc will become not just a thing, but the thing. Kodak doubled down on retail, instead of leaping to the seemingly non-sequitur future, and died. ESPN is doubling down on cable, with no reason to expect a different result.
I don't think that is the right narrative. All those same retailers print out pictures more now then ever. Kodak's digital products were a sub par and their competition (Especially Sony and Nixon) were destroying them in the market.
Kodak had excellent imagers in development and high-end production. They knew the imaging technology & business better than anyone. They just didn't pivot (fast!) to making that their core competency. Having literally 5 miles of chemical processing factories clouded the vision required to build highly competitive cameras.