ESPN Will Go a La Carte "Eventually," Says Iger

By |


espn-logo.jpgFierceCable reports that, in a recent conversation with CNBC's Squawk Box, Disney CEO Bob Iger said that the company's ESPN unit will eventually go a la carte, but that decision is likely more than five years away. The popular sports network demands a premium price to license as part of a pay-TV bundle; but, as the bundle approach begins to disintegrate, the company will need to explore other strategies, including an a la carte service similar to HBO Now.

From FierceCable
Walt Disney Company CEO Bog Iger said his company's highly profitable ESPN unit will eventually go a la carte as pay-TV's bundling infrastructure gives way. But that decision is still more than five years away, he added.

"If we end up seeing more erosion in the so-called multichannel bundle, quality will win out," Iger told CNBC's Squawk Box. "While the business model may face challenges over the next few years, long term for ESPN ... they'll be fine."

ESPN is already seeing a decline in its user base: The national sports network has lost 7.2 percent of its pay-TV base since 2011, and now counts around 93 million subs.

The costs for its programming, meanwhile, are rising faster than anywhere in the pay-TV ecosystem. ESPN is paying around $2 billion a year to the NFL just to show Monday Night Football, for example, and another $1.7 billion a season to present NBA games.

Meanwhile, ESPN charges $6.61 per subscriber, on average, making it far and away the most expensive programming network to license, among both broadcast and cable channels.

To read the complete FierceCable article, click here.

Additional Resources
NBA League Pass to Add Single-Game and Team Packages at HomeTheaterReview.com.
Millennials Abandoning Traditional TV at Faster Pace at HometheaterReview.com.


Latest News

Sep 15
Hisense Highlights 2020 TV Lineup at CEDIA 2020 The L5 Series, H9G Quantum Dot Series, and H8G Quantum Series run on the Android TV operating system. The H9G and H8G both include Dolby Atmos and Dolby Vision
Hisense Highlights 2020 TV Lineup at CEDIA 2020

Sep 15
Klipsch Holding, LLC Changes Name to Premium Audio Company, LLC The renamed company will consist of two subsidiaries, each comprised of several brands
Klipsch Holding, LLC Changes Name to Premium Audio Company, LLC

Sep 15
Sennheiser Celebrates 75th Anniversary with Limited Edition HD 800 S Release The very limited-edition HD 800 S Anniversary Edition headphones include the hallmark features of the original HD 800 S
Sennheiser Celebrates 75th Anniversary with Limited Edition HD 800 S Release

Sep 14
Bob Stuart Awarded Academy of Engineering Prince Philip Medal MQA creator and Meridian Audio co-founder is the first audio engineer to win the award in its 20-year history
Bob Stuart Awarded Academy of Engineering Prince Philip Medal

Sep 14
Vanco Announces Two New AV Recording Products The Vanco HDCAPT1 and PulseAudio PACAPT1 enable HDMI video and analog audio content, respectively, to be recorded and livestreamed
Vanco Announces Two New AV Recording Products

  • Comment on this article

Post a Comment
comments powered by Disqus