http://www.nunesmagician.com/2017/4/27/15447288/does-espnu-relocation-spell-trouble-or-opportunity-for-acc-network-syracuse-espn-layoffs
The terrible news around ESPN’s high-profile layoffs on Wednesday also included some information around ESPNU relocating its studio operations to Bristol, Conn. (home of most of ESPN), away from Charlotte, N.C.
Despite ESPN’s college sports-focused network moving, it appears layoffs in Charlotte will be minimal, and the SEC Network operations will continue to be housed there. Those Charlotte employees laid off in this round will also be able to apply to other positions within ESPN -- including potential openings for the upcoming ACC Network.
While it’s not addressed directly, this certainly sounds like ESPN working to consolidate its college sports coverage into fewer buckets. The SEC is obviously the big fish, and makes profits according to that status. The Longhorn Network appears to be unaffected despite its albatross status for ESPN.
The ACC Network isn’t up and running yet, but the digital portion has already been broadcasting games all year. We’re still a couple years out from the official launch... if that ever happens.
No one’s said as much, and obviously there’s legal stipulations that probably force the ACC Network onto the air now, in some form. But you’d have to think ESPN would be better off if it never happened.
The SEC Network’s a well-established entity with large audiences, a collective culture and a marketable and cohesive product to feed to fans around the country. While the ACC’s making a ton of money and is on a several-year upswing as an overall league, we can’t expect them to compete with the SEC. Or come close to commanding the television earnings that were bandied about of late (somewhere in the $4-8 million range per school in the near future).
If there’s any chance the ACC Network is as profitable as promised, it’ll probably be at the sacrifice of ESPNU, to start.
Awful Announcing points out the changing landscape of ESPN’s college coverage, largely confined to just the SEC (all but select CBS broadcasts), ACC (all) and Texas. The Big Ten’s inventory is not what it was. They own bits and pieces of other leagues, but not to the extent they once did. ESPNU, once teeming with valuable content, would basically house whatever didn’t fit on its big three college networks.
Which makes it seem like it’s on the way out.
So that’s trouble and opportunity for the ACC (and the Syracuse Orange). Trouble because it could mean less options to be on television in the short term. And a very real view of the sports programming landscape shifting underneath them.
There’s little chance ESPN can’t/won’t pay the rights fees to the ACC and other entities. But if moves like folding ESPNU and firing hundreds are the only thing that gets those checks written, was it really worth it?
The opportunity comes from what’s left after ESPNU likely goes away as a separate network. Without that tacked onto the overall ESPN package with cable providers, there’s potential room for the ACC Network.
ESPN moving away from the linear TV model they’ve come to know means more money being spent on digital and streaming video (was already the case anyway). Shifting programming from traditional cable/satellite to digital is no easy task. Starting off with a streaming model -- as is the case with the ACC Network -- is a much easier transition, since the method really doesn’t change.
With luck, that scenario is what comes to fruition for the ACC. A digitally-focused network rising from the ashes of ESPNU won’t be as profitable as the SEC Network. But long-term, it may be better positioned (for ESPN and the league) to survive.
Networks, conferences, schools and fans should’ve never expected the rights and subscriber fees to keep rising the way they have. And as much as this feels like a sudden slap in the face, it’s really the reckoning from a decade of keeping heads in the sand.
What happened on Wednesday is far from the last we’ll see of the collateral damage here. Syracuse and the ACC just have to hope their number doesn’t come up eventually.
http://www.wralsportsfan.com/despite-espn-woes-swofford-expects-acc-network-success/16573711/
When ACC commissioner John Swofford formally announced a long-rumored linear network partnership with ESPN at last year's ACC Kickoff media event in Charlotte, he was playfully self-aware of the vague answers he'd give to any questions regarding a potential channel.
"Some of you may be disappointed that I'm not going to be able to do the dance that I've done the last couple of years, dancing around some questions about television," Swofford joked.
Everyone involved, from athletic directors to ESPN honchos, jubilantly marked the occasion with photo-ops and lock-step talking points about the future health of the conference. It was supposed to be the end of those questions Swofford referenced last summer. Unfortunately, the continued erosion of ESPN's bread-and-butter cable subscriber base and finicky consumer habits have thrown into question whether a new linear network can be such a sure bet. Just take a look at the headlines since the start of this year.
"Walt Disney pressured by sagging ESPN performance." - Wall Street Journal
"ESPN will have significant cost-cutting over the next four months on its talent side." - Sports Illustrated
"Some ADs grumble about Pac-12 Networks’ payouts, distribution." - San Francisco Chronicle
"Niche cable channels fall victim to Peak TV." - Variety
"Linear pay TV lost 319K subs in Q4 as cord cutting accelerated, analyst says." - Fierce Cable
Keep in mind, the ESPN/ACC linear channel is still over 2 years away. That's an eternity in “internet time.” By 2019, consumers will have an even greater variety of over-the-top internet streaming options, including new offerings from YouTube and Hulu. Service providers, such as AT&T and Spectrum, will be happy to sling data deals at customers instead of bundled television tiers.
Despite it all, everyone within the ACC remains optimistic their network will be successful. Florida State AD Stan Wilcox explained to Noles247 the network "should have the same kind of return that the SEC Network has had in their first couple of years" based on the most recent projections from media consultant Dean Jordan. Virginia Tech AD Whit Babcock didn't get as specific with David Teel of the Daily Press, but did say he's "hopeful the channel will give [the ACC] the upside" to match the SEC.
Projections are just that, and the ACC has a long history of sandbagging revenue discussions. Only time will tell.
I've used a considerable amount of digital space to argue against a traditional, linear cable channel and the difficulties of launching a new network in an era of cord cutting and Disney budget cuts. While my opinion has softened a bit, understanding the cable sports bundle is still the best way to make money in the short term, I’m still skeptical of any earning projections. At some point, either Disney or the ACC will be forced to change their business model. Whether it’s selling direct to consumers or making their cable tier as expensive as their European paid television counterparts, it’s become clear the old way won’t bring in the kind of money everyone had grown accustomed in the last decade.
Swofford, naturally, did not share that same skepticism when he sat down for a wide ranging interview on 99.9FM The Fan during the ACC Tournament in Brooklyn. Below is an excerpt of the conversation related to television.
Wall Street continues to be skeptical of Disney stock mainly because of ESPN, with their subscriber losses changing the outlook of cable all together, yet you have Florida State AD Stan Wilcox being optimistic about the kind of revenue ESPN will pay out once the channel goes live. Why the optimism in the face of so much uncertainty.
"First of all, we’re with the best partner we could have with whatever takes place with the television landscape going forward. I think that’s a respect ESPN over a long period of time has earned by their performance. If things change dramatically, they’re going to change dramatically for everybody, not just the ACC, if it were to change to the point we were going in different directions. We feel very confident the launch of the ESPN linear network will be successful. We’re not in the business, nor is ESPN, of making decisions and launching efforts that we don’t think we’ll be successful. If there are adjustments based on the world as we know it, with the changing technology and how people continue view sports in the future, we feel like we’re exactly with who we would want to be with."
But there are times where market forces can dictate to ESPN, even if they want to be successful. Consider the latest news about budget cuts. However, do you think live sports is popular enough to withstand it, that people would be willing to pay what they’d have to pay to keep watching Duke & North Carolina play basketball or football games? Is it that powerful?
"I think so, it has so over time. History would tell us that it is, but I don’t think you can take that for granted. I think it has to be about quality and something that consumers want to be apart of and see. A very important part of that in our league is to be the best we can possibly be in every respect. I don’t say that with any degree of complacency."
Given that you’re still two years away from the start of your channel, and the landscape can change relatively quickly, what kind of dialogue are you having with ESPN?
"Periodic and thorough updates. That was a big part of our winter meetings in February in Ft. Lauderdale. ESPN came in and gave us updates on where we were with things, what needed to be done going forward and timelines for things that needed to be done. I think it’s all moving along exactly as it should in terms of the launch of the linear network in 2019."
Disney is making ESPN part of skinny bundles and over-the-top internet services. The plan seems to be making themselves available on all platforms in an effort to negate whatever cable subscriber losses occur. Is this something they’ve talked about with the ACC?
"There’s some of that, and some of it is obviously the distribution aspect of it. It’s very important for it to continue on cable."
http://thefederalist.com/2017/04/26/the-real-story-behind-espns-wednesday-massacre/
Thanks for posting. I'm sure a lot more things will change between now and 2019.
ReplyDeleteAgreed. It's the great unknown.
Delete#ninja
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