Along those lines, ESPN is now launching its own streaming service, which looks from the outside like a Pyrrhic victory. As Techcrunch explains,
"A streaming service, while it might attract sports fans who have cut the cord, won’t solve ESPN’s profit problems. Instead it will exacerbate them. Why? Because ESPN will continue to lose the millions upon millions of cable subscribers who pay for it but never watch it. Losing $7.21 from each non-watcher is going to be a revenue killer. There is no possible way the universe of sports fans who want ESPN can make up that revenue, even if they’re charged more for a streaming service."(The above was quoted in the story text, but it's unclear from context who was being quoted. Edit: it's an excerpt of this Bloomberg News story.) This is a problem of long-standing I first noticed with the Dodgers and their cable TV deal; there's simply no way the insane TV rights deals stand up without mandatory bundling. Things are going to get tighter for everyone in this space, and soon.
Update 2017-08-23: One aspect of this that has bothered me from the beginning is the same sense I got when the Guggenheim Group bought the Dodgers for $2.1 billion, and that is that this is predicated on revenue streams that simply cannot exist in the real world. (Even my rough contemporaneous pencil test showed the Dodgers couldn't milk that stream for the kind of dough they were getting out of bundled cable deals.) I'll spend some time digging and see if I can get MLBAM subscriber numbers somewhere. Also, it's important to know for return-on-investment figures that Disney earlier bought 33% of BAMTech for $1 billion, so their total investment appears to be $2.5 billion for (effectively) the whole magilla, or at least a majority stake.
It appears that MLBAM as of two years ago had 3.5 million subscribers, though this LA Times article doesn't mention how many are MLB.TV subscribers. But assume that 90% of them are paying for MLB.TV at $112.99/year. That means revenues are
3.5M subscribers * .9 * $112.99 subscriber-1*year-1 = $356M/yearIt's not implausible that they might be able to make money under this scenario, but it omits the costs of carriage for MLB, MiLB, PGA, and other content.
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