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ACC strikes deal with Yes Network

Figure this is a good thread for this...

http://deadspin.com/espns-ratings-are-way-down-this-year-whats-the-matte-722030528

Apparently ESPN is struggling some. Who would have thought putting all your eggs in one basket and continually pimping one conference in college football might have drawbacks?? Of course their issues go past college football, but with Fox and NBC pushing their way into the ESPN monopoly, things are going to get interesting....

This is going to impact the arms race in college football one way or another....
 
Deserves it's own thread, in my opinion. This was a shocker:

"For reference, ESPN is Disney’s largest asset accounting for an estimated 45% of total company OI."

This is the company that owns several of the largest tourist attractions in the world and puts out several blockbuster movies every year, yet ESPN accounts for almost half of their income? That's evidence that they're addicted to the current cable model and will take a major hit if it breaks up.
 
PhDeac said:
Deserves it's own thread, in my opinion. This was a shocker:

"For reference, ESPN is Disney’s largest asset accounting for an estimated 45% of total company OI."

This is the company that owns several of the largest tourist attractions in the world and puts out several blockbuster movies every year, yet ESPN accounts for almost half of their income? That's evidence that they're addicted to the current cable model and will take a major hit if it breaks up.
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And the decrease in ratings is before the launch of Fox Sports 1.....I don't see how they can avoid taking a major hit, and when they do, what happens to these absurd conference tv packages?
 
PhDeac said:
Deserves it's own thread, in my opinion. This was a shocker:

"For reference, ESPN is Disney’s largest asset accounting for an estimated 45% of total company OI."

This is the company that owns several of the largest tourist attractions in the world and puts out several blockbuster movies every year, yet ESPN accounts for almost half of their income? That's evidence that they're addicted to the current cable model and will take a major hit if it breaks up.
Click to expand...

I think ESPN is in a pretty good position if the cable/satellite delivery methods fall apart. The consumer has been able to watch ESPN events online for how long now? I think they launched ESPN 360 in 2005, they are way ahead of other networks in terms of alternate distribution delivery. The second they decide you can pay to get ESPN via the internet, Roku and Apple TV and every one else would be all over it.
 
Not related to this thread but prompted by it: can you imagine how fast Steinbrenner would have fired [Redacted]? He would not have made it until halftime of the Stetson game.
 
nomadic said:
I think ESPN is in a pretty good position if the cable/satellite delivery methods fall apart. The consumer has been able to watch ESPN events online for how long now? I think they launched ESPN 360 in 2005, they are way ahead of other networks in terms of alternate distribution delivery. The second they decide you can pay to get ESPN via the internet, Roku and Apple TV and every one else would be all over it.
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They've got the delivery covered but how about the pricing structure. People have been getting subsidized ESPN for years through cable and "free" streaming. Will people be willing to pay an ESPN subscription straight up?
 
PhDeac said:
They've got the delivery covered but how about the pricing structure. People have been getting subsidized ESPN for years through cable and "free" streaming. Will people be willing to pay an ESPN subscription straight up?
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Many people only have cable because there's good alternative for watching sports. I wouldn't hesitate to drop my $70-80 a month cable if I could get sports for $30-40 online.
 
Oh I'm one of those people. The question is wouldn't ESPN have already done this by now if it was more profitable than cable? I don't think they have a good pricing model for this yet.
 
I would assume that there are non-competes in their contracts with cable providers that prevent them from offering the online service for a fee.
 
TBR said:
I would assume that there are non-competes in their contracts with cable providers that prevent them from offering the online service for a fee.
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Good point. If that's hurting the bottom line, what would it take to get out of them?
 
I don't know. I would think that the cable companies would fight them tooth and nail on it. Maybe refuse to remove it altogether or force a much, much lower rate.
 
Especially since the cable company is often the same company delivering the internet feed. If the cable company got pissed and blocked the internet stream ESPN would be screwed under that model.
 
TBR said:
I would assume that there are non-competes in their contracts with cable providers that prevent them from offering the online service for a fee.
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correct. Which is why you need to have cable with a provider they have contracted to get the stream.
 
PhDeac said:
They've got the delivery covered but how about the pricing structure. People have been getting subsidized ESPN for years through cable and "free" streaming. Will people be willing to pay an ESPN subscription straight up?
Click to expand...

If the cable systems "falls apart" as you mentioned above then yes. I am not giving up ESPN, if Uverse went out of business tomorrow I would be looking to get it somewhere.
 
Does the YES deal result in any additional $ for the ACC or was the purpose of the deal to increase the number of people with access to ACC sports?
 
YES is a regional network generally available on cable in the northeast (and Florida), and on satellite. If you live in the traditional ACC region (the Carolinas, Virginia, Georgia), the games that YES carries will be available on the local sports networks. There are not going to be any exclusive YES broadcasts of ACC games. YES is simply offering in NY/NJ/CT what would already be available in the traditional ACC region.
 
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