What The ESPN Critics Are Missing

An excellent counter argument to the ESPN is dead theme w/ quartlery profit estimates @ various subscriber levels and monthly pricing ($7.21 + 25% price increase):
1) 80m subs — $1.4b — $2.0b
2) 70m subs — $800m — $1.5b
3) 60m subs — $500m — $1.1b
4) 50 subs — $200m — $750m

The following 2 things can be true at the same time:
1) ESPN is a magical business and one of the greatest (legal) cash machines in existence.
2) The cash machine has driven up monthly cable bills to the point where consumers are exploring alternatives.​

Smart idea. ESPN keeps current subscriber model (in the short term), but launches direct to consumer product focused on super fans and specific sports/teams.


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