Which is rich as shit:
But Disney is grateful for those $6.1 billion in affiliate fees from ESPN that help stabilize revenues each quarter. Ad revenues at ESPN, now $3.3 billion, can fluctuate depending on the economy (total ESPN revenues, including the networks, magazine and website, are $10.3 billion). Affiliate fees, paid by cable companies to channel owners each month, have steadily grown 8% annually at ESPN in recent years. ESPN and ESPN2 are both in more than 100 million homes and command $5.13 and $0.68 per month, according to SNL Kagan. The next highest among widely available channels are TNT at $1.18 and Disney Channel at $0.99 says Kagan. The average fee for basic cable channels is $0.26.
ESPN is worth $40 billion according to a research report this summer from Wunderlich or barely ten times earnings before interest, taxes, depreciation and amortization of $3.9 billion. Disney as a whole is currently worth $84 billion (Hearst owns a 20% stake in ESPN with Disney owning the rest).
That is some serious market clout.
Be grateful that we dodged a bullet that Michael Eisner fired, though.
He told the New York Times when the merger was announced, “We know that when we lay Mickey Mouse or Goofy on top of products, we get pretty creative stuff.” Eisner added. “ESPN has the potential to be that kind of brand. ABC has never had our resources, and we haven’t had ESPN. Put the two together and who knows what we get.”
How ’bout Lou Holtz and Goofy? Or Mickey as ESPN’s Game Day guest picker? (Or regular panel picker, for that matter?)
Although I have to admit that Minnie Mouse might make a better sideline reporter than some of the folks the WWL trots out.