You may have heard recently that ESPN is cutting the cords with some of its high-priced talent, like Keith Olbermann and Bill Simmons. It’s not because the WWL has a problem with their work.
It’s just the result of some good old-fashioned cost cutting. There’s a piece up at the Wall Street Journal about ESPN’s bottom line, and while I don’t subscribe to the WSJ, I did run across a couple of tweets that get the message across.
That tension between on-line video service and cable broadcast service ain’t going away, and you can see how ESPN is rapidly moving to a spot twixt a rock and a hard place. How rapidly? Well…
That’s not a positive trend. And it shouldn’t be too hard to figure out what’ll eventually come if ESPN keeps taking the hit.
You may not care about the loss of Olbermann or Simmons. (I don’t.) But you are kidding yourself if you think it stops there. If enough bleeding occurs, sooner or later that will impact rights fees.
Nobody – at least nobody dependent on conference broadcast network revenues – is going to like it when the 800-pound gorilla goes on a diet. But I’m sure Greg Sankey is on the mother as I type this.
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UPDATE: Speaking of Sankey, David Wunderlich sees one silver lining for the SEC in the approaching dark cloud.
If traditional pay TV collapses in the future, the SEC won’t be stuck with expensive studios and broadcast equipment to liquidate and contracts with talent to buy out. Its institutions will have to deal with a loss of revenue, but so will everyone else, and the conference won’t have to worry about writing off the considerable losses that winding down a TV network would mean. I’m sure that Greg Sankey is a good person to be running an athletic conference, but I don’t see anything in his background that suggests he’s the person to figure out the future of broadcasting where to date all others have failed.
That’s a fair point. It’s also worth pondering whether further conference expansion is such a great idea right now. We’ll see how pleased Jim Delany is with Rutgers and Maryland if the BTN business model falls apart.