ESPN laying off up to 350, earning forecasts down

Submitted by justingoblue on

 

 

The network, which commands the highest price per customer among basic cable channels, has lost more than 4 million subscribers in the past four years, according to researcher SNL Kagan.

Disney Chairman and Chief Executive Officer Robert Iger said on an Aug. 4 conference call that ESPN was experiencing “modest” subscriber losses. The company lowered its projected annual growth in operating income at its cable TV business to mid-single digits percentages, from high-digit percentages in the four-year period through fiscal 2016.

A lot of the talk about the new Big Ten deal in 2018 has revolved around being either the last of the megadeals or the first of a leaner market. The conference contract will almost certainly be the biggest up for bid this decade.

http://www.bloomberg.com/news/articles/2015-10-20/disney-s-espn-said-planning-to-eliminate-as-many-as-350-jobs

Perkis-Size Me

October 21st, 2015 at 1:03 PM ^

Can Pam Ward be one of the pink slips, please?

But seriously, I watch ESPN for the games and for nothing else. ESPN has become a frickin circus with the likes of Mark May, Stephen A Smith, Skip Bayless, and every other former athlete who thinks they know how to commentate. It’s getting 5-10 guys on a screen and all arguing and screaming at each other. Sadly, guys like May and Smith are not going anywhere, though, because news these days is not so much about good stories as much as it is “what’s going to generate the most clicks and reactions from our viewers?”

This is the age we live in, though. Social Media is a blessing and a curse. Everyone has a voice, and ESPN thrives off of blowhards reacting to Stephen A Smith’s obnoxiousness. 

Reader71

October 21st, 2015 at 1:27 PM ^

Yes, the debate format they have gone to is terrible. Yes, they have many professional trolls who are paid to say ridiculous things in an effort to get people to hate-watch. Yes, 75% of their stuff is garbage. But if having to put up with that means not having to watch games on BTN or Fox Sports, I'm ok with it. BTN has no idea how to present a game - terrible camerawork, slow to no replays, and awful announcing. Fox is marginally better on the cameras, worse on the mics. Also, Edge NFL Matchup is the best sports show ever programmed, despite Merril Hoge being as annoying as hemorrhoids.

Eastside Maize

October 21st, 2015 at 1:28 PM ^

They are a victim of their own success. I remember when I would watch the same looped episode of Sportscenter 2 or 3 times straight. College Gameday was must see TV. Now it's mostly sporting events that I watch on ESPN.

Ty Butterfield

October 21st, 2015 at 2:09 PM ^

So much this. Putting on programming with awful people like Hill is why I gave up on ESPN. Anyone remember the fake press conferences with Steve Phillips pretending to be the GM of a baseball team and answering questions about the personnel needs that should be addressed in the off season? Just God Awful. Give me a mid 90s Sportscenter with Kenny Mayne and Dan Patrick.

UMProud

October 21st, 2015 at 2:45 PM ^

Paying $20 a month now with Sling TV for ESPN & ESPN2.  Sling TV is garbage...video quality is horrible.  I use the ESPN apps and they work pretty darn good.  If the price is around $20 and includes everythng I'll buy it.  Hopefully they'll bundle in B1G network too!

sdogg1m

October 21st, 2015 at 2:23 PM ^

Why spend an hour watching sports news content when you can get it all in less than 10 minutes? You can use the other 50 to browse team specific content on your favorite blog like (mgoblog). ESPN started to head this route with the fan nation pages but gave up too quickly on it.

The shows were commentators basically argue with each other I have no time for. I really would prefer about 50% less talking during the telecasts. I think I am not the only one.

The only reason ESPN held on for so long is it was difficult to get game production on the internet and that era has come to an end. Long live On Demand programming!

pdgoblue25

October 21st, 2015 at 4:07 PM ^

But I'm not going to shed a tear over ESPN losing money.

In my opinion ESPNs downfall started about 15 years ago when the "Rumor Section" was added to espn.com.  The rumor section was essentially make up whatever bullshit you feel like and claim an anonymous source. 

Then came Tebow....then Manziel and Michael Sam.

MileHighWolverine

October 21st, 2015 at 4:09 PM ^

I guess this is what happens when dump $125mm into a new studio that has absolutely no positive value for your bottom line. There was nothing wrong with their old facilities that required that kind of an upgrade......but, someone wanted a monument to themselves and got it. It just cost 350 people their jobs.

funandgun

October 21st, 2015 at 6:05 PM ^

When they decided to tackle social issues, many people jumped ship.  They really need to stick to sports.  People watch to get away from real life and not be reminded of it or have an agenda pushed at them.  Run inspirational stories, but stay away from subjects that isolates a large portion of the country.  (even if they are wrong, why would a business think it is smart to make 10%, 20%, or even 50^ of their customers upset?)  I am not getting into right/wrong here, but there are way too many people that do not agree with many of their social agendas.  The problem is many of those people vote with their wallets and have jumped ship.

If they get back to the basics and cover sports/inspirational stories that aren't controversial....they will gain viewers back. 

mischill

October 21st, 2015 at 7:23 PM ^

When Favre was the constant update for months on end, I gave up. ESPN tries to create the narrative. The NFL is no different. They push a nothing story until everybody is talking about it. Deflated footballs were turned into a story that even our mothers were aware of. And it meant nothing. People are getting tired of it, I'm sure.



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UofMfanJJ (not verified)

October 21st, 2015 at 8:16 PM ^

ESPN has better presentation when it comes to a college foot all game anyway. Fox is literally a joke for those people who just don't wanna hear people like Skip Bayless, legit I can't watch anything on Fox

SharkyRVA

October 21st, 2015 at 8:49 PM ^

Cable in general is tanking due to how inexpensive web streaming is.  If I no longer need ESPN to watch sports (primarily football)...  bye bye cable.

mauigoblue

October 21st, 2015 at 9:47 PM ^

What is happening is people now know that ypu are payin to be advertised to. I will pay and have no advertsements or watch for free and be watch adds. Going back to how it was before cable.

bronxblue

October 21st, 2015 at 9:52 PM ^

Again, I'm not fan of cable as an institution, but these media companies are still going to make it a pain in the ass to access the content they have rights to, and even if the individual leagues take back their rights and distribute on their own, there will be middlemen along the way.  Sure, there might be incremental drops in cost, but I am fairly certain that most of us won't notice a major drop in the bills we pay for a fair amount of the meida we consume.  I mean, we're already seeing it with broadband, which is jumping up in cost to offset any drops in cable subscribers.

Bluelake

October 21st, 2015 at 10:00 PM ^

ESPN is nothing like they used to be. think about all the talent that went though their studio's. I looked forward to watching  Olbermann and Patrick when they did sportscenter together years ago. (I can't stand Olbermann now)

I think they still do a decent job with college football, but I get sick of being force fed all things NFL and NBA. I love football but damn how can they talk about the NFL all day every day.

TheReal_GR3

October 22nd, 2015 at 8:25 AM ^

I've been visiting this blog consistently since 2011. I didn't join for so long becuas some of you are so rude to each other. I finally did but usually don't post. Reading this thread makes it really hard to enjoy this blog on another level. It is personal. 

It seems some of you enjoy the idea of families losing their jobs income. Do any of you know what it is like to be in a home where someone is laid off? My mother was laid off many years back and trust me it is not a feeling you ever want. 

I've been with ESPN since 2008. This is the second time I've had to say goodbye to coworkers, to mentors, to my friends. 

I see people begging for Jemele Hill to be fired, why? Because she bragged loudly about her team winnning? Really? Is it that serious? I worked with Jemele and Michael Smith for two years on Numbers Never Lie before His and Hers and I can promise you she is the nicest person and I owe her some credit for my career progressing as it has. 

Now I am a producer at the SEC Network. I see someone suggest that they hope this is due to the SEC Network... Just an FYI... The building is half Big Ten grads or fans. So yeah there is that... 

This might not make sense but whatever. This isn't a joke or something for you to laugh at. This is real life and it hurts to tell someon goodbye and good luck as they go home to their wife and children.

 

 

UMProud

October 22nd, 2015 at 4:49 PM ^

You're not the first person who's ever been downsized and you won't be the last.  Most of us paying customers resent the exorbiant prices that we have to pay because many games are now not on over the air broadcast.

Many people, myself included, think ESPN has been greedy and monopolized sports broadcasting to a great extent.  But don't worry alot of us hate cable companies too.

So now that people have options we're saying goodbye to cable and ESPN is not getting the exorbient fees they used to...hence the cost cutting.

So nothing personal to you but we don't like ESPN that much.  Some stuff is good but most of it...nah.

As far as Jemele Hill goes she may be a saint in heaven but it's pretty unprofessional to "in your face" to paying customers.  If I spoke to my customers who were fans of a rival like this they wouldn't be my customers anymore.

And I'm sorry you lost your job...I've been there, done that with a family to support.

PS - Please tell the folks in advertising to quit looping the same fucking commercials over and over and over and over and over again on streaming broadcast.

DairyQueen

October 22nd, 2015 at 7:14 PM ^

Fair enough, but your argument is absolutely based on a pure logical fallacy. Appeal to emotion.

Being "laid off" I'm sure is a very difficult time. But, there's a simple market-based reason that ESPN is laying people off.

Their service is no longer valued.

I'm not trying to be patriarchal or punishing (though you are with you hetero-normative BS about "wife and kids" line, as if a "wife" automatically can't work, can't provide, or derives her person-hood through her male counterpart), but the simple fact is, layoffs happen because the company has calculated that it is more valuable to NOT pay you and LOSE your work-contribution, than it is to do the opposite.

This is a fact of life, and subject to every line of work.

The previous posters are merely voicing their disdain for certain on-air personalities (who, by the way, are ABSOLUTELY fair targets for criticism and contempt, as per their position), and have connected THAT VERY disdain to criticisms of ESPN as causalities into why ESPN is hurting for subscribers (and cash), and ultimately viewership (and likely their complaints are accurate). 

Now you can disagree, and take umbrage with their positions on the layoffs, but they have just as much freedom (and clearly the market has spoken, of which they are a part) to voice their opinions as you do.

Look, I feel bad for people who are struck with cancer, blindness, brain-damage, chronic pain, auto-immune diseases, lose of a loved one or divorce/separation or anything of the like. But please don't try to appeal to my emotional side when people are let go from a job that covers sports. Spare me. There are many, many more important things in the world than a sports broadcaster being criticized, or people who are extremely capable, and physically able, getting laid off from a premiere and reputable employer. It was always a privilege as employment, and there is no doubt they will bounce back (except for possible extreme exceptions, but again they are the extreme exception, not the rule), and will recover into the many, many, many employers that will have their resumes placed at the very top.

A privilege is a privilege, not a right, regardless of how one sees it.