ESPN Cutting Employees Today

[BigVMan23]

But that's not where the bulk of ESPN's money is or has ever been. They make the majority of their revenue off of subscribers. They make somewhere north of $8 per month per subscriber. That's over $8.5 billion per year at 90,000,000 customers.

 

90,000,000

 

What about their radio network? I'd say advertising money has to play a big part in that.

[woodsrider]

Got to say, that I did not know and not historically how TV worked. Looks like I do need to cut the cord.

It's not with most channels. I think the next highest is less than $1.00 per. Most get revenue from advertisers. This why we've been saying ESPN's biggest failure has been lack of foresight on where the trend was heading.

[woodsrider]

What about their radio network? I'd say advertising money has to play a big part in that.

I'd say 100% of their revenue is ad money. But how much of the overall pie that is I couldn't say. It may be insignificant.

[coldweatherfan]

But that's not where the bulk of ESPN's money is or has ever been. They make the majority of their revenue off of subscribers. They make somewhere north of $8 per month per subscriber. That's over $8.5 billion per year at 90,000,000 customers.

 

90,000,000

 

The stuff I have read says 59% of total revenue comes from subscriptions and 41% from advertising.

[Jumper_Dad]

What about their radio network? I'd say advertising money has to play a big part in that.

 

I'd say 100% of their revenue is ad money. But how much of the overall pie that is I couldn't say. It may be insignificant.

 

They charge local stations to carry their programming as well. Local station used to carry 4 to 6 hours of ESPN Radio each morning, Mike & Mike and what ever was on next...one day without warning it was dropped. I asked a friend in the business and he said they couldn't afford to carry ESPN any longer due to the fees associated with it. So while national advertising pays a large chunk I'm sure, they (at least used to) charge local stations to carry their programming as well.

[woodsrider]

The stuff I have read says 59% of total revenue comes from subscriptions and 41% from advertising.

Here's an article from 2015 that says it's over 60%. This is based on 2014 numbers when subscriptions were just over $6 each. Seeing they are now at over $8 each I would say this gap is even wider.

More than 6

[woodsrider]

They charge local stations to carry their programming as well. Local station used to carry 4 to 6 hours of ESPN Radio each morning, Mike & Mike and what ever was on next...one day without warning it was dropped. I asked a friend in the business and he said they couldn't afford to carry ESPN any longer due to the fees associated with it. So while national advertising pays a large chunk I'm sure, they (at least used to) charge local stations to carry their programming as well.

Evansville lost their local carrier in Dec and so far no other channel has stepped up. This was after switching channels about 2 years ago. That change was the 3rd one in the last 10 years or so. Now I listen to ESPN radio on Cincinnati 1530 through the iHeart ap.

[coldweatherfan]

I'm 99.9% sure I am cutting the cord come against once my contract is up. Still researching my options. My main issue is making sure all of the TVs in the house are the same.

 

That was one of the tough parts.

 

The other was getting MrsC past the technology part. She just wanted to turn the TV on and watch. She still doesn't like having to search for things on the net or on a box, but she's gotten better at it.

 

Most of the time she watches antenna TV though.

[MJAlltheWay24]

Sounded like Ron Jaworski and Merril Hoge are also out.

[coldweatherfan]

Here's an article from 2015 that says it's over 60%. This is based on 2014 numbers when subscriptions were just over $6 each. Seeing they are now at over $8 each I would say this gap is even wider.

More than 6% of ESPN's revenue comes from subscriber fees - Business Insider

 

Every article I'm reading doesn't point to ad money being down. They are losing subscribers by the millions and it's costing them big $'s. Again they have to figure out a way to replace that money and soon. The ad revenue cannot make up the difference.

 

The one I posted early was from Oct '16. It says just shy of 60%

[woodsrider]

The one I posted early was from Oct '16. It says just shy of 60%

Which would support that cord cutters is what is driving this.

[UKMustangFan]

Sounded like Ron Jaworski and Merril Hoge are also out.

 

I didn't even know Hoge still worked there. No one ties a tie quite like him. :lol2:

[Jumper_Dad]

I liked watching Jaws break down film, I enjoyed his insight.

 

Hoge was one of my least favorite analyst, just always seemed to try too hard and never felt natural.

[rjs4470]

I liked watching Jaws break down film, I enjoyed his insight.

 

Hoge was one of my least favorite analyst, just always seemed to try too hard and never felt natural.

 

Obviously, as a Philly guy, I love Jaws. But he really hasn't played much of a role on ESPN for a few years now.

 

Hoge, I won't miss at all.

[Jim Schue]

Let me use another analogy.

 

The NY Times can print 100 million copies of their paper every day. But if their readership is only 50,000, what number are the advertisers going to use to base their calculations on when figuring what to pay for ad space?

 

Newspaper ad rates are based almost solely on paid subscription numbers, and to a much lesser degree single-copy sales at stores and free-standing racks.