Seeking Alpha

ESPN to ride Pay-TV cash train a while longer

  • Execs with ESPN (DIS) plan to ride the Pay-TV cash train as long as they can before going all-in with an online service. The current WatchESPN app doesn't do much for cord-cutters or cord-nevers.
  • The motivation to tread very slowly into online access to live programming is simple to understand with the network commanding the highest carriage fees in the industry and sitting with 98M Pay-TV subscribers in its back pocket.
  • What to watch: Behind the scenes, ESPN is busy prepping for the day the Pay-TV model crumbles. New technology to seamlessly fill advertising slots for its apps could help boost revenue if an all-access online service is rolled out.
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