ESPN is imploding

[SpookyAction]

Bob Iger said their "linear" television assets are on the chopping block. That list would include ABC (the only thing I watched on ABC in the last year was the Pitt game), History Channel, Lifetime, National Geographic, A&E, FX, FXX, FXM, Crime and Investigation, Military Channel, and FYI.
I have to say, I don't watch any of these anymore, except an occasional National Geographic.

We do watch "What We Do in the Shadows" from FX on HULU. That show is hilarious.

 

[SpookyAction]

I have been thinking about the ESPN slashing of talent.
TV is a dying industry. I am not sure streaming is going to end up profitable for much longer for content creators and screen talent.
Post Covid, the cinema/movie model appears to be in jeopardy too. We rarely go to the movies these last 2-3 years.
Things are changing fast.
I read Disney's market cap would go up if they sold their linear tv assets. Don't really know if ESPN is on the market.
I expect Disney to switch the ESPN brand to a streaming model in the very near future.

This happened @ 20 years ago in the music industry.
Revenue plunged after file sharing reduced cd sales. The market was ripe to turn because cd's were overpriced. Then customers bailed on the cd model that had created vast wealth for music corporations and artists, and especially songwriters. It has been a long while since I paid for a song. I use SiriusXM, and don't even worry about hearing a specific song anymore.

Today, songwriters of #1 songs with millions of downloads and billions of streams are making less than $10k for their efforts. I read an article about a young woman in her late twenties. She co-wrote and helped record three songs with over a billion streams each on an album, and made $8000. Just 20 years ago, she would have made enough money through cd and single sales and radio play to live large and have generational wealth to leave to her children.

These developments in the music business are why you can find world-class talent on Broadway playing to 15 people on Tuesday morning at 10am. Artists that would have been fabulously wealthy in Nashville 20-30 years ago, are today playing for food money at any gig paying.

There are still some huge money makers, mainly legacy acts and a few new artists reaching top status from time to time. This is why concert tickets skyrocketed to crazy money. To make up for the loss of cashflow. Tours used to promote cd sales, now they are the main cash driver of the business (along with licensing for commercials, series, and movies).

 

[CAVPUT]

I have been thinking about the ESPN slashing of talent.
TV is a dying industry. I am not sure streaming is going to end up profitable for much longer for content creators and screen talent.
Post Covid, the cinema/movie model appears to be in jeopardy too. We rarely go to the movies these last 2-3 years.
Things are changing fast.
I read Disney's market cap would go up if they sold their linear tv assets. Don't really know if ESPN is on the market.
I expect Disney to switch the ESPN brand to a streaming model in the very near future.

This happened @ 20 years ago in the music industry.
Revenue plunged after file sharing reduced cd sales. The market was ripe to turn because cd's were overpriced. Then customers bailed on the cd model that had created vast wealth for music corporations and artists, and especially songwriters. It has been a long while since I paid for a song. I use SiriusXM, and don't even worry about hearing a specific song anymore.

Today, songwriters of #1 songs with millions of downloads and billions of streams are making less than $10k for their efforts. I read an article about a young woman in her late twenties. She co-wrote and helped record three songs with over a billion streams each on an album, and made $8000. Just 20 years ago, she would have made enough money through cd and single sales and radio play to live large and have generational wealth to leave to her children.

These developments in the music business are why you can find world-class talent on Broadway playing to 15 people on Tuesday morning at 10am. Artists that would have been fabulously wealthy in Nashville 20-30 years ago, are today playing for food money at any gig paying.

There are still some huge money makers, mainly legacy acts and a few new artists reaching top status from time to time. This is why concert tickets skyrocketed to crazy money. To make up for the loss of cashflow. Tours used to promote cd sales, now they are the main cash driver of the business (along with licensing for commercials, series, and movies).

All I know is that I'm damned glad I still rock my vinyl from my HS and college days. Never bought into CD's and my 8 tracks and cassettes plum wore out leaving my LP's as the last man standing.

 

[SpookyAction]

All I know is that I'm damned glad I still rock my vinyl from my HS and college days. Never bought into CD's and my 8 tracks and cassettes plum wore out leaving my LP's as the last man standing.

My LP collection is in the living room in a huge shelving unit, and my (huge) cd collection is in the shed.

 

[Nerwen Aldarion]

I don’t think Disney is going bankrupt tomorrow but they certainly don’t seem interested in the oncoming train.

Most of their films are barely breaking even or are losing money, Elemental, Little Mermaid, a lot of the last few Marvel films, they’ve underperformed big time.

Their streaming service is losing money too. A lot of streaming services are as there is now a glut of services and a lot of password sharing. There’s a reason Netflix is cracking down on that. Disney deciding to release their films on streaming early has also hurt their box office as why would I pay $12 a ticket and more to go sit in a theater when if I wait a couple months I can just watch it at home?

Their parks are becoming vastly overpriced. They’ve raised prices and dumped their deals. Now it costs thousands of dollars for a middle class family to just get into the parks for a couple of days not including meals and lodging. Look at their ridiculous Star Wars hotel that started at minimum of around $2500 a night. They spent over a billion to build that thing and shut it down within a year

That’s their problem, the parks used to be their bread and butter but now attendance is down and continuing to trend down as it becomes more and more affordable to only the rich.

They just don’t seem interested in changing lanes but instead keep doubling down on the things that simply aren’t working. Disney won’t be in trouble of bankruptcy for a while but if they don’t do something different then yes it will happen.

 

[SpookyAction]

I don’t think Disney is going bankrupt tomorrow but they certainly don’t seem interested in the oncoming train.

Most of their films are barely breaking even or are losing money, Elemental, Little Mermaid, a lot of the last few Marvel films, they’ve underperformed big time.

Their streaming service is losing money too. A lot of streaming services are as there is now a glut of services and a lot of password sharing. There’s a reason Netflix is cracking down on that. Disney deciding to release their films on streaming early has also hurt their box office as why would I pay $12 a ticket and more to go sit in a theater when if I wait a couple months I can just watch it at home?

Their parks are becoming vastly overpriced. They’ve raised prices and dumped their deals. Now it costs thousands of dollars for a middle class family to just get into the parks for a couple of days not including meals and lodging. Look at their ridiculous Star Wars hotel that started at minimum of around $2500 a night. They spent over a billion to build that thing and shut it down within a year

That’s their problem, the parks used to be their bread and butter but now attendance is down and continuing to trend down as it becomes more and more affordable to only the rich.

They just don’t seem interested in changing lanes but instead keep doubling down on the things that simply aren’t working. Disney won’t be in trouble of bankruptcy for a while but if they don’t do something different then yes it will happen.

All true, but Disney's problems are shared by many corporations.
High prices are finally slowing revenues for a lot of businesses. It took much longer than I expected, and prices will stabilize at a level that has really cut in to my own standard of living.
I know I am spending 80% less on things besides food, utilities, insurance, and transportation.
I have been amazed by the spending spree the nation has been on the last 3 years.

Disney movies are now less profitable, and the whole industry has treaded water since 2020. Three movies grossed over a billion worldwide last year. Nine movies grossed a billion in 2019. What does the movie industry look like when movies cost more to make and see, yet profit less?

 

[n_huffhines]

I don’t think Disney is going bankrupt tomorrow but they certainly don’t seem interested in the oncoming train.

Most of their films are barely breaking even or are losing money, Elemental, Little Mermaid, a lot of the last few Marvel films, they’ve underperformed big time.

Their streaming service is losing money too. A lot of streaming services are as there is now a glut of services and a lot of password sharing. There’s a reason Netflix is cracking down on that. Disney deciding to release their films on streaming early has also hurt their box office as why would I pay $12 a ticket and more to go sit in a theater when if I wait a couple months I can just watch it at home?

Their parks are becoming vastly overpriced. They’ve raised prices and dumped their deals. Now it costs thousands of dollars for a middle class family to just get into the parks for a couple of days not including meals and lodging. Look at their ridiculous Star Wars hotel that started at minimum of around $2500 a night. They spent over a billion to build that thing and shut it down within a year

That’s their problem, the parks used to be their bread and butter but now attendance is down and continuing to trend down as it becomes more and more affordable to only the rich.

They just don’t seem interested in changing lanes but instead keep doubling down on the things that simply aren’t working. Disney won’t be in trouble of bankruptcy for a while but if they don’t do something different then yes it will happen.

You guys make these elaborate assessments based off your world view and type out 300 words of bad info when all you gotta do is take 3 seconds to use Google.

 

[SpookyAction]

I know the rule of thumb in business is 5% profit margin is less than ideal, and 10% is healthy.

I am thinking, in entertainment, Disney's 10% profit margin seems low. It is a sign of a healthy business overall, but entertainment has traditionally been a moderate spending and high reward industry. Streaming is having the same effect on tv and movies it had on music, just a generation later.

 

[05_never_again]

I know the rule of thumb in business is 5% profit margin is less than ideal, and 10% is healthy.

I am thinking, in entertainment, Disney's 10% profit margin seems low. It is a sign of a healthy business overall, but entertainment has traditionally been a moderate spending and high reward industry. Streaming is having the same effect on tv and movies it had on music, just a generation later.

It's totally different industry to industry. A 5% margin in the grocery business would be incredible.

10% does seem low for Disney though as an entertainment and media company.

 

[SpookyAction]

It's totally different industry to industry. A 5% margin in the grocery business would be incredible.

10% does seem low for Disney though as an entertainment and media company.

Something just occurred to me. Disney might be carrying debt from 2020-21's movie season and theme parks that are offsetting some profits going forward.

 

[Remy]

ESPN is owned by Disney. Disney made ESPN political. Choosing sides in politics costs you the viewership of those that disagree with your viewpoints. Lack of viewership costs advertising dollars. Supporting the WNBA, which no one watches, costs you money. Stakeholder capitalism destroys companies. ESPN is not profitable & going bankrupt. Disney is not profitable and going bankrupt. Pixar is now unprofitable. If you make 3m, plus the cost of your co-workers, plus the costs of production, and the overhead of corporate managers, you better bring in a significant viewership by your presence. None of the people fired really did. They will be replaced by people who make a fraction of what those let go did. This is why profitability & staying out of politics is so important. Notice how no one in upper management got fired. I guarantee you many in management are looking to jump ship. They know they are next.

As a recent example Disney stock was down again yesterday and closed for less than $86 per share. Wall Street Journal reports their Orlando property has attendance way down from previous years. They need to quit giving pervs a voice on and in their products, the guy in the beard working in a dress at Cinderella's Castle restaurant area is not going over well with the Joe and Jane Sixpacks in this country and world.

 

[butchna]

What if they can not find the money to fulfill the SEC TV contract? Would another network step in and offer lower money to the conference?

A contract’s a contract. Unless they file bankruptcy, they’re paying up.

 

[butchna]

You guys make these elaborate assessments based off your world view and type out 300 words of bad info when all you gotta do is take 3 seconds to use Google.

View attachment 563360

Fun with numbers. Like Biden’s handlers asserting that we’re enjoying the strongest economy in history. I’m sure Iger is breaking it all up because he’s running out of storage room for all the money.

 

[n_huffhines]

I know the rule of thumb in business is 5% profit margin is less than ideal, and 10% is healthy.

I am thinking, in entertainment, Disney's 10% profit margin seems low. It is a sign of a healthy business overall, but entertainment has traditionally been a moderate spending and high reward industry. Streaming is having the same effect on tv and movies it had on music, just a generation later.

When I looked it up, I believe revenue was $82b and a $28b margin is way more than 10%.

 

[n_huffhines]

Fun with numbers. Like Biden’s handlers asserting that we’re enjoying the strongest economy in history. I’m sure Iger is breaking it all up because he’s running out of storage room for all the money.

So to be clear, you think Iger came back to Disney so he could put himself criminally in danger by cooking the books to the nth degree, just so Disney can save face...

 

[butchna]

So to be clear, you think Iger came back to Disney so he could put himself criminally in danger by cooking the books to the nth degree, just so Disney can save face...

I think he came back because he never wanted to leave in the first place and they gave him a hefty raise. Who brought up “cooking books”, you goober? Are you seriously asserting that Disney is flush with success? High school classmate of mine worked for that company 14 years. Cut loose suddenly like the ESPN talent. Move numbers around the ledger and the money saved looks more positive, but the ACTIONS show the numbers are window dressing. Things ain’t healthy.

 

[05_never_again]

I think he came back because he never wanted to leave in the first place and they gave him a hefty raise. Who brought up “cooking books”, you goober? Are you seriously asserting that Disney is flush with success? High school classmate of mine worked for that company 14 years. Cut loose suddenly like the ESPN talent. Move numbers around the ledger and the money saved looks more positive, but the ACTIONS show the numbers are window dressing. Things ain’t healthy.

Iger left because he wanted to run for President. Speculation initially, then eventually self-admitted. He came back because they hated Chapek so much and canned him.

 

[butchna]

Iger left because he wanted to run for President. Speculation initially, then eventually self-admitted. He came back because they hated Chapek so much and canned him.

How come he never declared his candidacy? Not buying.

 

[05_never_again]

How come he never declared his candidacy? Not buying.

Uh...maybe because he was just thinking about it?

 

[butchna]

Uh...maybe because he was just thinking about it?

So that required him to leave his job?

 

[05_never_again]

So that required him to leave his job?

I mean...he was in his late 60s and had already made hundreds of millions of dollars in his career. I don't think he's thinking about how to make more money at that point. And yeah, doing some type of exploratory committee-type thing to see if a presidential run is feasible is a full-time job.

 

[n_huffhines]

I think he came back because he never wanted to leave in the first place and they gave him a hefty raise. Who brought up “cooking books”, you goober? Are you seriously asserting that Disney is flush with success? High school classmate of mine worked for that company 14 years. Cut loose suddenly like the ESPN talent. Move numbers around the ledger and the money saved looks more positive, but the ACTIONS show the numbers are window dressing. Things ain’t healthy.

So now you're not saying it's not fake Biden numbers? Make up your mind.

Cool anecdote and theories. Sorry your friend got fired, but trimming the fat is how they get to $28b in profit in a year where people believe they are in actual trouble.

You guys construct an entire narrative based on a few select stories that are fed to you from parties that don't like Disney. IDK why it is so hard to comprehend the fact that you only have a fraction of the picture. Disney is much bigger than your friend, some high profile ESPN employees, a handful of movies, and a Star Wars resort. ESPN is < 5% of their revenue, FFS.

 

[jaguinn5]

None of those are big losses imo.

You don't have to like all of them to acknowledge that they are big names to let go.

 

[butchna]

So now you're not saying it's not fake Biden numbers? Make up your mind.

Cool anecdote and theories. Sorry your friend got fired, but trimming the fat is how they get to $28b in profit in a year where people believe they are in actual trouble.

You guys construct an entire narrative based on a few select stories that are fed to you from parties that don't like Disney. IDK why it is so hard to comprehend the fact that you only have a fraction of the picture. Disney is much bigger than your friend, some high profile ESPN employees, a handful of movies, and a Star Wars resort. ESPN is < 5% of their revenue, FFS.

Biden was an analogy. “Things are great because of job growth!” which is jobs generated from Covid restrictions ending…restrictions THEY enacted. So fun with numbers.

Gratitude for your fake sympathy, but when a behemoth turns it’s own people into “fat” and CUTS it to maintain a false NARRATIVE of profitability, something isn’t working. I have no need to “comprehend” the BS spewing out your piehole like Ebola. A functional company runs EVERYTHING effectively. The rot’s in the core and cutting off limbs like they’re the source is cosmetic.

“Us guys” open our eyes and see a company struggling due to consumer blowback from their forcefeeding a progressive agenda. Continue to defend and deflect that fact with your NON-PARTISAN posts and one begins to suspect your motives.

 

[butchna]

I mean...he was in his late 60s and had already made hundreds of millions of dollars in his career. I don't think he's thinking about how to make more money at that point. And yeah, doing some type of exploratory committee-type thing to see if a presidential run is feasible is a full-time job.

So he was DONE and now he’s not so much? Why accept the huge bump? Nothing to save?