Would you pay $30 a month to watch ESPN? That's the figure derived by Needham in a report it...


Would you pay $30 a month to watch ESPN? That's the figure derived by Needham in a report it issued studying what would happen if an a la carte system was adopted in the cable/satellite industry. According to industry executives, Disney's (DIS) sports juggernaut is holding the pay-TV model together and consumers would get slammed with higher fees and less choices if a la carte became a reality. What to watch: ESPN earns the highest carriage fees in the industry at $5.54 per subscriber, but NBC (CMCSA) and 21st Century Fox (FOXA) are trying to break up the network's dominance.
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Comments (11)
  • Tack
    , contributor
    Comments (16514) | Send Message
     
    It will be interesting to see what Google's strategy is with its just-released Chromecast product. They could wreak havoc in existing models.
    26 Jul 2013, 10:29 AM Reply Like
  • coloneldebugger
    , contributor
    Comments (923) | Send Message
     
    I agree, their plan to add GoogeTV to the Chromecast device is something to watch. But if that happens it's going to be your internet bill that skyrockets as much or more than your cable bill drops.
    26 Jul 2013, 10:36 AM Reply Like
  • Tack
    , contributor
    Comments (16514) | Send Message
     
    colonel:

     

    That's why Google's fiber initiative is so important. It's deployment, if successful on a broad scale, will prevent carriers from screwing customers.

     

    (As an aside, one thing I have noted, as both a Google and Amazon customer, is that these companies seem to keep providing more for less, while most others are always trying to provide less for more.)
    26 Jul 2013, 10:41 AM Reply Like
  • coloneldebugger
    , contributor
    Comments (923) | Send Message
     
    NBC and Fox are not trying breakup anything. They're trying to cash in on those carriage fees. The same way all the college athletic conferences are so desperate to get a network going like the Big10/11/12/∞ did.
    26 Jul 2013, 10:34 AM Reply Like
  • dilligaf30
    , contributor
    Comments (18) | Send Message
     
    Come on. Everyone would.
    26 Jul 2013, 10:37 AM Reply Like
  • Tvaddic
    , contributor
    Comments (286) | Send Message
     
    But how much would you pay for ESPN 2, ESPN News, or ESPN Classic, probably not that much. And if it they were bundled in with $30 the price could go for $40-$45. So Disney and every other media company would have to think of a way to monetize its subchannels fir ala carte to make sense.
    26 Jul 2013, 10:52 AM Reply Like
  • J Mintzmyer
    , contributor
    Comments (8874) | Send Message
     
    ESPN regular will be fine. The 'network' would likely fall apart. This makes me a little nervous as a $DIS holder.

     

    I think ESPN has potential in the online realm as a sort of sports-NFLX service, but the subscription intake will be much smaller, both in terms of total subs, and it terms of the aforementioned "$30."
    26 Jul 2013, 11:13 AM Reply Like
  • KATHLEENWILCOX631@GMAIL.COM
    , contributor
    Comments (85) | Send Message
     
    People want OBAMA "FREE" TV, not ala carte.

     

    And to show you how craven DIS is on the subject of ala carte, here is a snippet from The Walt Disney Company's Management Presents at Nomura Annual U.S. Media & Telecom Summit Conference (Transcript)...

     

    I don't think there has been any serious thoughtful analysis that suggests that an a la carte world is actually better for consumers. We have a strong belief that in an a la carte world consumers will wind up paying more for less available content on television and that if you look at the extended basic content and the quality of the production that goes in to it, not only sports production and the viewing of sports but all the other production values that have shown up on cable networks, it's still, we think is a wonderful value.

     

    "Jay Rasulo - Senior EVP & CFO

     

    Well, of course, from time to time and you know behind your question of the regulatory environment is the whole question of a la carte that you know from time to time goes up. Look I don't think there has been any serious thoughtful analysis that suggests that an a la carte world is actually better for consumers. We have a strong belief that in an a la carte world consumers will wind up paying more for less available content on television and that if you look at the extended basic content and the quality of the production that goes in to it, not only sports production and the viewing of sports but all the other production values that have shown up on cable networks, it's still, we think is a wonderful value.

     

    If you look at ESPN subscribers over the last two years, there has not been a net change in the subscribers to ESPN. So we feel like, yeah from time to time, there is going to be some rabble rousing about this concept of and it kind of ends up being focused on sports. But we still believe that the values there for consumers and that they will continue to rationale thinking will prevail in that believe system."

     

    http://seekingalpha.co...

     

    What's interesting is, DIS wants to let you know, "I don't think there has been any serious thoughtful analysis that suggests that an a la carte world is actually better for consumers. "

     

    DUH you think so, Jay ?

     

    SO, DON'T tell yourself that it ain't gonna happen with DIS !

     

    And of course, they will be "forced" to do it...because as Jay says,
    "...it's the system" !
    26 Jul 2013, 11:23 AM Reply Like
  • coloneldebugger
    , contributor
    Comments (923) | Send Message
     
    "If you look at ESPN subscribers over the last two years, there has not been a net change in the subscribers to ESPN."

     

    I'm not picking at you personally, but can someone explain to me exactly how anyone has a choice in unsubscribing from ESPN without unsubscribing from cable entirely?
    27 Jul 2013, 10:23 AM Reply Like
  • jmjjmj1
    , contributor
    Comments (183) | Send Message
     
    nice political jab Kathleen, how about just making your point without the "faux news" bent, it might make your arguments more credible from an investment perspective.
    26 Jul 2013, 11:57 AM Reply Like
  • KATHLEENWILCOX631@GMAIL.COM
    , contributor
    Comments (85) | Send Message
     
    These are DIS employees making these statements.

     

    Check the facts for a change, before you use personal attacks.
    27 Jul 2013, 09:19 AM Reply Like
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