🏈📉📺 ESPN Waka From Di Disney Money Machine Go Turn Problem Pikin
⬇️ Pidgin ⬇️ ⬇️ Black American Slang ⬇️ English
Di time wen ESPN bin dey run tins for Disney as di number one money maker don reach final stop bus. ESPN don dey ginger Disney with plenty cash for almost 30 years, e don carry dem pass plenty wahala like recession, box office washout and even di COVID-19 matter. ESPN dey make am easy for Disney to buy plenty oda big companies like Marvel, Lucasfilm, Pixar, 21st Century Fox, and e even make dem build streaming service. Di whole tin turn Disney to big ogbonge company wen go fit fight dem Silicon Valley wey wan show.
But now ESPN best days don end. 🥺
ESPN still dey make billions for Disney through wetin dem dey call “dual revenue stream” from dem cable subscribers and advertising. For di first six months for 2023 fiscal year, Disney’s cable networks division wen ESPN dey control plus oda small channels don make $14 billion revenue and $3 billion profit. 🏆💰
Di wahala be say, Wall Street wan see progress. Revenue for dem six months don reduce by 6 percent from last year, as profit drop 29 percent. 😲
Disney don dey reason to sell small part for ESPN. CEO Robert A. Iger don yan say dem no go sell all, but e need “strategic partners wey go fit help us with distribution or content.” E talk dis one last month during interview. Dem don hold meeting with NFL, NBA and MLB about buying small stake. 🏀⚾🏈
Di mata dey urgent, so Mr. Iger don bring two former Disney ogas, Kevin Mayer and Thomas O. Staggs, make dem help for ESPN matter with James Pitaro, di channel president, to arrange di deal. 🤝
Steve Bornstein, wen bin be ESPN CEO, yan say “e dey very hard to see di real growth opportunities wen dey ESPN.” But e also add say “dem get better hand.” Di network get plenty rights to show live games, digital properties, and correct website. 💪📱
Di tin wen ESPN dey find dey confuse people, nobody sabi wetin dem really need. Dem need money, technological help, or assistance with distribution? 🤷🏿
Di main problem wey ESPN dey face simple to understand.
Dem dey make most of di money from affiliate fees. Na di money wen cable providers like Comcast, Charter Communications and Cox dey pay ESPN for di right to show dem channel to people. For last year, about 71 million U.S. households don pay for package wen include ESPN. Di cable providers come pay ESPN average of $8.81 per month for each house. 💸📡
Cord cutting don dey chop di money small small. Ten years ago, pass 100 million houses dey get ESPN, meaning say 30 million fewer houses dey get ESPN now pass 2013. ESPN don try increase di fee to balance am, but dem no fit continue like dat for di future. By 2027, less than 50 million houses go pay for cable TV according to PwC. 📺📉
Di same time, ESPN cost don dey rise like yeast. ESPN go pay average of $2.7 billion every year for di next ten years to show N.F.L., na 42 percent increase from before. Dem go soon negotiate with N.B.A. for big contract. 🏈🏀💸
Disney go pay $10.8 billion dis year for sports programming. Dem future commitment don reach about $57 billion, and some of di contract go even reach 2030s. All dis na because of spending spree to fight tech companies wen dey hungry for sports programming, plus to support ESPN+ streaming service. 📺🎥💥
Roger Werner, wen be former ESPN CEO talk say, “di cord-cutting matter na answer to di increasing cost of cable, and true true di increasing cost of cable na because of di increasing cost of sports rights.” 😔💔
ESPN don dey cut back for other areas to pay for di rights, especially original programming. Dem dey depend on big stars like Stephen A. Smith. Dem never dey proud of layoffs before, but since 2015 dem don do am six times, including one wen affect big men and women for June. 🎙️👋
Di same time, ESPN dey face di wahala economics of streaming era.
ESPN+ dey show thousands of games every year, but di best N.F.L., college football, N.B.A. or baseball games dey for ESPN and ABC, wey Disney own sef. Sport leagues no dey allow companies show games only for streaming platforms, e dey reach small audience pass network or cable TV. 🏈⚽🏏
For April, ESPN+ get 25.3 million subscribers, but only five million people pay for am directly. Di rest buy am with bundle of Disney+ and Hulu. 🎥🎬💸
Analysts dey ask when Disney go offer ESPN as single streaming channel, make people fit buy am alone. E go cost plenty money, maybe $40 or $50 per month, to keep di same revenue. 🎫💲
E no go easy at all. E be like say cable still be di best way to watch sports if you be fan, and e go hard to sell ESPN alone without di other channels.
For this matter, Disney no fit rush. Na better calculation dem go use play di game. ⚖️🧠🎲
NOW IN BLACK AMERICAN SLANG
🏈📉📺 ESPN Shiftin’ from Disney’s Cash Cow to a Problem Child
So there was a time, right, when ESPN was the big moneymaker for Disney. For like 30 years, ESPN was holdin’ Disney down, keepin’ ’em afloat through all kinds of stuff – recessions, them box office flops, even that COVID-19 mess. Helped ’em snatch up Marvel, Lucasfilm, Pixar, 21st Century Fox, and get that streaming service off the ground. Disney was flexin’, ready to go toe-to-toe with Silicon Valley.
But now? ESPN’s golden age? It’s a wrap. 🥺
Don’t get it twisted, ESPN’s still pullin’ in the billions for Disney with that “dual revenue stream” from cable subscribers and ads. First six months of 2023? $14 billion in revenue, $3 billion in profit from Disney’s cable network division. 🏆💰
Problem is, Wall Street’s all about that growth. Revenue’s down 6 percent, profit’s down 29 percent. People are stressin’. 😲
Disney’s even thinkin’ ’bout sellin’ a piece of ESPN. CEO Robert A. Iger said they ain’t sellin’ all of it, but they lookin’ for partners to help with content or distribution. They been talkin’ with the NFL, NBA, MLB. 🏀⚾🏈
They ain’t playin’, either. Iger brought in Kevin Mayer and Thomas O. Staggs to strategize with James Pitaro. 🤝
Even Steve Bornstein, ex-ESPN CEO, said, “it’s really hard to see the real growth opportunities available to ESPN.” But he still believes they got a strong hand, with rights to games, digital assets, and a solid website. 💪📱
What ESPN needs? That’s the real question. Money, tech help, distribution? 🤷🏿
Here’s the skinny on ESPN’s main issue:
Most of the money’s from affiliate fees. Cable providers like Comcast, Charter Communications, Cox pay ESPN to show their channel. Last year? 71 million households were payin’, and ESPN was gettin’ $8.81 per month for each. 💸📡
Cord cutting’s takin’ a bite out of that. Ten years back? 100 million households. Now? 30 million less. By 2027, fewer than 50 million homes gonna be payin’ for cable TV. 📺📉
Costs ain’t helpin’, either. ESPN’s gonna be payin’ $2.7 billion a year for the next ten to show the NFL, a 42 percent increase. Then there’s that NBA contract comin’ up. 🏈🏀💸
Disney’s droppin’ $10.8 billion this year on sports programming, and they’re locked in for about $57 billion more, some contracts runnin’ into the 2030s. All to keep tech companies at bay and pump up ESPN+. 📺🎥💥
Roger Werner, another ex-ESPN CEO, broke it down: “the cord-cutting phenomenon is a response to the increasing cost of cable, and indeed the increasing cost of cable is due in part to the increasing cost of sports rights.” 😔💔
To make it work, ESPN’s been cuttin’ back on original shows, leanin’ on big names like Stephen A. Smith. Even had to let some folks go, six rounds since 2015. 🎙️👋
And don’t get me started on the streaming game.
ESPN+ shows a ton of games, but the big ones are saved for ESPN and ABC. Leagues ain’t lettin’ games go straight to streaming; they need that big network and cable audience. 🏈⚽🏏
As of April, ESPN+ had 25.3 million subscribers, but only five mil were payin’ for it alone. The rest? They got it bundled with Disney+ and Hulu. 🎥🎬💸
People are wonderin’ when Disney’s gonna let folks buy ESPN by itself. Might need to charge $40 or $50 a month to keep that money right. 🎫💲
It ain’t gonna be easy, though. Fans still like their cable, and sellin’ ESPN without the rest? Tricky.
Disney’s gotta play this one cool, figure out their next move real careful. ⚖️🧠🎲
NOW IN ENGLISH
🏈📉📺 ESPN Moves from Disney’s Money Machine to Becoming a Problem Child
The time when ESPN was Disney’s top money maker has come to an end. For almost 30 years, ESPN has been boosting Disney’s fortunes, carrying the company through challenges like recessions, box office failures, and the COVID-19 pandemic. ESPN made it easier for Disney to acquire major companies like Marvel, Lucasfilm, Pixar, and 21st Century Fox, and even enabled them to build a streaming service. This transformed Disney into a giant capable of taking on Silicon Valley’s entertainment invasion.
But now ESPN’s best days are over. 🥺
ESPN still earns billions for Disney through what’s known as a “dual revenue stream” from cable subscribers and advertising. In the first six months of the 2023 fiscal year, Disney’s cable networks division, anchored by ESPN and other smaller channels, made $14 billion in revenue and $3 billion in profit. 🏆💰
The problem is that Wall Street wants to see growth. Revenue for those six months fell by 6 percent compared to the previous year, and profit plunged by 29 percent. 😲
Disney is now considering selling a portion of ESPN. CEO Robert A. Iger has stated that they won’t sell it all but need “strategic partners that could either help us with distribution or content.” He said this last month during an interview. Meetings have been held with the NFL, NBA, and MLB about purchasing a minority stake. 🏀⚾🏈
The matter is urgent, so Mr. Iger has brought in two former Disney executives, Kevin Mayer and Thomas O. Staggs, to consult on ESPN’s strategy with James Pitaro, the channel president, to arrange the deal. 🤝
Steve Bornstein, a former ESPN CEO, said, “it’s really hard to see the real growth opportunities available to ESPN.” But he also added that “they have a strong hand.” The network has numerous rights to broadcast live games, digital assets, and a robust website. 💪📱
What ESPN is seeking is confusing, as nobody knows what they really need. Do they need money, technological help, or assistance with distribution? 🤷🏿
ESPN’s main problem is easy to understand.
Most of their money comes from affiliate fees. These are fees that cable providers like Comcast, Charter Communications, and Cox pay ESPN for the right to show their channel to customers. Last year, about 71 million U.S. households paid for a package that included ESPN, and these cable providers, in turn, paid ESPN an average of $8.81 per month for each household. 💸📡
Cord cutting has been chipping away at this revenue. Ten years ago, over 100 million households received ESPN, meaning 30 million fewer households get ESPN now than in 2013. ESPN has tried to increase the fee to offset this, but their ability to continue to do so will be limited in the future. By 2027, fewer than 50 million homes will pay for cable TV according to PwC. 📺📉
At the same time, ESPN’s costs are soaring. ESPN will pay an average of $2.7 billion annually for the next ten years to show the NFL, a 42 percent increase from before. They will soon negotiate with the NBA for a potentially costly contract. 🏈🏀💸
Disney will pay $10.8 billion this year for sports programming. They have future commitments totaling about $57 billion, with some of the contracts running into the 2030s. All of this is due to a spending spree to fend off tech companies hungry for sports programming, as well as to support their fledgling ESPN+ streaming service. 📺🎥💥
Roger Werner, a former ESPN CEO, commented that “the cord-cutting phenomenon is a response to the increasing cost of cable, and indeed the increasing cost of cable is due in part to the increasing cost of sports rights.” 😔💔
To afford the rights, ESPN has cut back in other areas, primarily original programming, relying more heavily on big stars like Stephen A. Smith. Once proud of never having undergone layoffs, the company has seen six rounds of layoffs since 2015, including one that affected high-profile executives and on-air personalities in June. 🎙️👋
At the same time, ESPN is grappling with the turbulent economics of the streaming era.
ESPN+ broadcasts thousands of games annually, but the biggest NFL, college football, NBA, or baseball games are reserved mostly for ESPN and ABC, which is also owned by Disney. Sports leagues are reluctant to allow companies to offer games exclusively on streaming platforms, where they reach far fewer audiences than on network or cable TV. 🏈⚽🏏
As of April, ESPN+ had 25.3 million subscribers, though only five million people paid for it directly. The rest purchased it as part of a discounted bundle with the more popular Disney+ and Hulu. 🎥🎬💸
Analysts are questioning when Disney will offer ESPN as a standalone streaming channel, allowing people to buy it individually. It would likely have
to be priced substantially, perhaps at $40 or $50 per month, to maintain the same revenue. 🎫💲
It won’t be easy. Cable still seems to be the preferred way to watch sports for fans, and it may be challenging to sell ESPN without the other channels.
In this situation, Disney cannot act hastily. They will need to carefully strategize their next moves. ⚖️🧠🎲
