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[QUOTE="JimBoston, post: 2179519, member: 1312"]
Yes, ESPN is not losing money, but their profit margins are under pressure.  And, the future doesn't look great for their current business model.  Basically, they make money 3 ways:  Total subs, price charged per sub, and advertising.  Well, subs are declining, price per sub will probably be difficult to increase going forward, and ratings have been mixed.  On the expense side, ESPN has locked in escalating media rights costs for the long term.  The cost savings of the recent job cuts are minimal compared to costs of media rights and you can't cut too much talent or ratings will decline.

So, ESPN could have flat to declining revenues with rising costs for media rights.

What could happen to an ACCN?  ESPN could convert ESPN Classic to the ACCN as ESPNC has been losing subs and shifting to VOD, so it could be a way for ESPN to turn around a declining asset.  (ESPN Classic has less than 25 million subs today)  The real issue is will the carriage of an ACCN be jammed down the throats of cable companies like the BTN was?  In today's world where cable companies are losing subs to cord cutting due to the high cost of the cable bundle, I think it's doubtful.
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