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<blockquote data-quote="flynnibus" data-source="post: 7056775" data-attributes="member: 45664"><p>Linear TV dying does not mean Network TV dying.. or even ESPN. Its a bigger change on the advertising and release models than anything else. DVR vs Live is just another red herring in this discussion trying muddying up the waters and get some confused support.</p><p></p><p>The issue facing ESPN is the way people buy access to content.. ESPN has been able to stay in the core bundles and demand insane payouts per subscriber due to their dominance. Market pressures from upstart streams means the cable companies are having to adapt in how they sell their access.. and those changes are disrupting the classic 'core' bundle. The market is shifting in how its productized.. not that it's dying. The subscriber slide hits ESPN.. but we're talking about leakage, not the ship broke in half. They don't need to go and drop cable and the BILLIONS that brings in for a long long time. In ESPN's example, they've already been incredibly progressive in putting their content up in direct streaming setups.. they are an online juggernaut. When it comes time to start directly competing with terrestrial cable.. they have lots of experience. They'd be idiots to drop cable at this point.. its paying hand over fist. When the time is right to move away... they can still do so. Nothing in these pages of arguments have painted why ESPN can't or won't change when the time is right. </p><p></p><p>The market shakes are because the street sees subscriber shrinkage instead of growing - and they need something to talk about or point at. The issue isn't that ESPN can't become some online provider... the issue is ESPN is addicted to a revenue stream that eventually will be greatly reduced. Working out how to productize in a manner that gets the revenues you want is where they need to do their homework..</p><p></p><p>Not stupid stuff like worrying about DVRs, netflix, etc. It's all about trying to transition people to paying for something they are used to NOT paying for directly.</p></blockquote><p></p>
[QUOTE="flynnibus, post: 7056775, member: 45664"] Linear TV dying does not mean Network TV dying.. or even ESPN. Its a bigger change on the advertising and release models than anything else. DVR vs Live is just another red herring in this discussion trying muddying up the waters and get some confused support. The issue facing ESPN is the way people buy access to content.. ESPN has been able to stay in the core bundles and demand insane payouts per subscriber due to their dominance. Market pressures from upstart streams means the cable companies are having to adapt in how they sell their access.. and those changes are disrupting the classic 'core' bundle. The market is shifting in how its productized.. not that it's dying. The subscriber slide hits ESPN.. but we're talking about leakage, not the ship broke in half. They don't need to go and drop cable and the BILLIONS that brings in for a long long time. In ESPN's example, they've already been incredibly progressive in putting their content up in direct streaming setups.. they are an online juggernaut. When it comes time to start directly competing with terrestrial cable.. they have lots of experience. They'd be idiots to drop cable at this point.. its paying hand over fist. When the time is right to move away... they can still do so. Nothing in these pages of arguments have painted why ESPN can't or won't change when the time is right. The market shakes are because the street sees subscriber shrinkage instead of growing - and they need something to talk about or point at. The issue isn't that ESPN can't become some online provider... the issue is ESPN is addicted to a revenue stream that eventually will be greatly reduced. Working out how to productize in a manner that gets the revenues you want is where they need to do their homework.. Not stupid stuff like worrying about DVRs, netflix, etc. It's all about trying to transition people to paying for something they are used to NOT paying for directly. [/QUOTE]
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