Disney could respond to the increase trend toward cord-cutting by offering direct consumer access to ESPN, says Bob Iger, CEO of The Walt Disney Company. This could potentially make it available as a standalone channel on Apple TV, rather than something you can only get if you subscribe to a cable package that includes it.
But don’t rush out to cancel your cable subscription just yet – Iger, who is also on Apple’s board, said in a CNBC interview that the move won’t happen in the next five years. He was responding to questions about the future of the channel in an increasingly difficult market for cable. Enterprise recently reported that the channel lost more than three million viewers in the last year.
Sports network ESPN, meanwhile, reportedly lost 3.2 million viewers over the last year as a growing number of pay-TV customers either cut the cord or sought so-called skinny packages that didn’t include the industry’s most expensive channel. ESPN accounts for about $6 of most cable bills.
Iger said that the company viewed technology as friend rather than foe, and would adapt as the industry changed.
“While the business model may face challenges over the next few years, long term for ESPN … they’ll be fine. They have pricing leverage, too,” Iger said. “Disney [Channel] is another … brand and product that could be sold directly to the customer.”
But with that five year caveat, don’t expect to find ESPN offered as a standalone service like HBO or Showtime, and possibly not even as part of the streaming TV service Apple is expected to launch in the fall.
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I’m a nerd. I have zero interest in sports.
There are also a lot of people who are not nerds and in fact love the outdoors and sports who have no interest in ESPN. :)
There are also a lot of people who are nerds that do in fact love the outdoors and sports.
That’s super frustrating. Fortunately I’m still a kid who has an overpriced cable plan I’m not paying for that is all I really need.
It would be nice if Apple could get some exclusives for a six-month time period before the other streaming box services get it. Apple should have that much cloud or be able to pay extra for those privileges.
I have ESPN but rarely watch sports. If there’s some auto racing I might watch if a race is interesting.
In other words, we will not be keeping any clauses in contract renewals with TV service providers that prevent us from offering direct access to our channels.
This will, of course, take time to run through existing contracts, but at the end of the day, Disney owned channels are of the caliber that they have this clout and can gamble with pissing off cable providers. Think of it this way. DirecTV or Comcast say they want ESPN, etc. for less. Disney says no, but tell you what. I’ll offer, to your customers, a direct service. You won’t be offering our channels anymore, so we aren’t competing with you.
If Sling TV can offer nine ESPN channels, through various packages, why couldn’t the same happen with Apple TV (should they go the rumored streaming route). Not to mention, there are three Disney channel, and Apple has always been super close with Disney. It doesn’t make sense that Disney would leave Apple out, in this regard.
really 5 years is a long time from now…cable as we know it may be dead by then. Think how much the iphone changed the phone industry in 5 years…
An “over-the-top” ESPN offering in 5 year is totally useless. ESPN has a real problem on its hands if the cable bubble bursts well before 5 years time. Source: DisneyLeaks. Blogspot. Com.