It's really simple, they are spending more than they want to, so they're reducing their costs. The tv contracts are the immovable boat anchor, but there are other ways to cut spend. What I don't know, what's their advertising revenue look like?
It's all intertwined, but I'm still of the opinion that the real problem is the loss of subscribers. Perhaps as
@TUSKstuff suggests its the terrible decision making on renewing contracts, but all that would be fine if they still had the subscribers. Losing the subscribers is what's uncovering the issue based on my viewpoint. Each subscriber is worth ~$100/year by my estimates (rounded up).
- Longhorn Network - what's gonna happen with that? They really need to hit the reset on this or find a way to turn this into lemonade.
- Future of ACC network?
- Increase subscriber fee's to account for the loss in subscribers.
- Increase advertising fees.
- Offer ESPN a-la-carte, but they're ranked 19th in terms of what subscribers want at 41% for $1.85 according to http://www.fiercecable.com/broadcas...desirable-a-la-carte-channels-tivo-study-says
The beauty in SlingTV, DirecTV Now, etc....if you only want ESPN during college football season, you can do that and never look back. It's really that flexible. ESPN needs to rethink their entire business model. The good thing they have Disney money behind them and Disney still sees value in them, but changes are coming.