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[QUOTE="Cuse181, post: 4722981, member: 8295"]
I talked about this the other day, ESPN is looking for a partner to help them launch a linear like DTC service. They see cable is dying, they want to be able to leverage their brand via a streaming service that carries their live content. The search for a strategic partner is key because Disney is getting crushed by the debt they took on after the fox acquisition. They are working on spinning/selling ABC and then taking on a partner for ESPN. They are not going broke because of their media deals, quite the contrary actually: those sports deals are the only reason they are viable. They are struggling because their lower cost content that usually drove a majority of the margin (sportscenter for instance) is obsolete in the age of social media. They want a partner to help reduce the cost of launch of course, but also defend against the inevitable impact to cable revenue (what’s left of it) when the cable guys complain that they’re no longer paying for an “exclusive” service so their rates should drop. It’s a prudent move, but their hand was moreso forced by ABC, and broadcast TV in general, struggles. Frankly, if they can get 40-50M subs to a 20/month ESPN service they probably come out ahead of where they were with cable agreements.
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