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Here's the full story on ESPN and what's going on...they just released their financials
Posted on 10/20/23 at 1:28 pm
Posted on 10/20/23 at 1:28 pm
ESPN has released its financials for the first time ever.
• $16 billion in annual revenue
• $2.9 billion in annual profit
Even crazier, ESPN drives more annual profit for Disney than the company's entire entertainment division.
But not everything is perfect.
Here's what you need to know ??
Disney CEO Bob Iger announced earlier this year that the company is changing how it reports quarterly financials.
There will now be three categories:
1. Experiences (Parks & Products)
2. Entertainment (Streaming, TV, Movies, Etc.)
3. Sports (ESPN)
This is the first time that we've gotten a peak behind the curtain into ESPN's financial results.
Here are the highlights:
1. ESPN is a major cash cow for Disney
ESPN delivered $16 billion in revenue in fiscal 2022 and had profits of $2.9 billion.
That's significantly less revenue than Disney's entertainment division (Streaming, TV Networks, Movie Studios, etc.) at $39.6 billion.
Disney's Annual Revenue
• ESPN: $16 billion
• Streaming/TV/Movies/Etc.: $39.6 billion
But ESPN has better margins and still brought in more annual profit than the entire entertainment division.
Disney's Annual Profits
• ESPN: $2.9 billion
• Streaming/TV/Movies/Etc.: $2.1 billion
The majority of ESPN's revenue comes from the affiliate fees that cable companies pay to distribute ESPN ($10.1 billion), with a smaller amount of ESPN's annual revenue coming from advertising ($4.4 billion).
But that is changing as we speak....
2. ESPN's financials are headed south
It's true that ESPN is far from being the failure many people like to claim it to be — but it's also true that the business is not as good as it once was.
For example, we've gone from 100 million pay-TV households in the United States to about 70 million over the last decade.
Add in the fact that sports rights keep getting more expensive because it's the last thing holding the cable bundle together, and it's no surprise that ESPN has seen its revenues drop 35% over the first nine months of 2023.
That's why ESPN has been pushing people to ESPN+.
The streaming service currently has 25 million subscribers, which sounds great.
But ESPN+ lost subscribers for the first time ever last quarter, and many people are only signing up because it's included as part of a package deal with Disney+ and Hulu.
So, while ESPN is still a cash cow for Disney today ($2.9 billion in annual profit!!), the future looks less promising than it once did.
That's why ESPN has been cutting jobs and is now reportedly looking to partner with companies like Apple or Amazon to increase distribution.
-- Joe Pompliano on Twitter
• $16 billion in annual revenue
• $2.9 billion in annual profit
Even crazier, ESPN drives more annual profit for Disney than the company's entire entertainment division.
But not everything is perfect.
Here's what you need to know ??
Disney CEO Bob Iger announced earlier this year that the company is changing how it reports quarterly financials.
There will now be three categories:
1. Experiences (Parks & Products)
2. Entertainment (Streaming, TV, Movies, Etc.)
3. Sports (ESPN)
This is the first time that we've gotten a peak behind the curtain into ESPN's financial results.
Here are the highlights:
1. ESPN is a major cash cow for Disney
ESPN delivered $16 billion in revenue in fiscal 2022 and had profits of $2.9 billion.
That's significantly less revenue than Disney's entertainment division (Streaming, TV Networks, Movie Studios, etc.) at $39.6 billion.
Disney's Annual Revenue
• ESPN: $16 billion
• Streaming/TV/Movies/Etc.: $39.6 billion
But ESPN has better margins and still brought in more annual profit than the entire entertainment division.
Disney's Annual Profits
• ESPN: $2.9 billion
• Streaming/TV/Movies/Etc.: $2.1 billion
The majority of ESPN's revenue comes from the affiliate fees that cable companies pay to distribute ESPN ($10.1 billion), with a smaller amount of ESPN's annual revenue coming from advertising ($4.4 billion).
But that is changing as we speak....
2. ESPN's financials are headed south
It's true that ESPN is far from being the failure many people like to claim it to be — but it's also true that the business is not as good as it once was.
For example, we've gone from 100 million pay-TV households in the United States to about 70 million over the last decade.
Add in the fact that sports rights keep getting more expensive because it's the last thing holding the cable bundle together, and it's no surprise that ESPN has seen its revenues drop 35% over the first nine months of 2023.
That's why ESPN has been pushing people to ESPN+.
The streaming service currently has 25 million subscribers, which sounds great.
But ESPN+ lost subscribers for the first time ever last quarter, and many people are only signing up because it's included as part of a package deal with Disney+ and Hulu.
So, while ESPN is still a cash cow for Disney today ($2.9 billion in annual profit!!), the future looks less promising than it once did.
That's why ESPN has been cutting jobs and is now reportedly looking to partner with companies like Apple or Amazon to increase distribution.
-- Joe Pompliano on Twitter
9
Posted on 10/20/23 at 1:33 pm to JetDawg
Looks like they didn't need to fire all of those white dudes for financial reasons.
Posted on 10/20/23 at 1:34 pm to JetDawg
Cooking Financials to get bezos to buy it.
Posted on 10/20/23 at 1:38 pm to JetDawg
Before ESPN+ the only reason I kept Dish was to watch sports. But now with ESPN+ I still have to keep Dish because I need my tv provider sign in to use it.
My local internet supplier Franklin Telephone wont work to run ESPN+
If they’d do away with that crap and make it where you could pay for the streaming app without needing TV or internet provider sign in they’d get more users imo
My local internet supplier Franklin Telephone wont work to run ESPN+
If they’d do away with that crap and make it where you could pay for the streaming app without needing TV or internet provider sign in they’d get more users imo
Posted on 10/20/23 at 1:44 pm to JetDawg
Is the bidding open yet?
Posted on 10/20/23 at 2:05 pm to JetDawg
frick ESPN.
Posted on 10/20/23 at 2:20 pm to JetDawg
Didn't expect this topic to veer where it has gone 
Posted on 10/20/23 at 5:07 pm to JetDawg
Call me old-fashioned, I am old.
I’m done with paying cable and expensive streaming services like Sling Orange to watch the Dawgs.
I’ve got a radio app- I really enjoy it actually because I remember having to listen to Dawgs games on the radio.
Big games are on CBS, I get those over the air. The others I listen on the radio. It’s nostalgic for me personally.
I’m done with paying cable and expensive streaming services like Sling Orange to watch the Dawgs.
I’ve got a radio app- I really enjoy it actually because I remember having to listen to Dawgs games on the radio.
Big games are on CBS, I get those over the air. The others I listen on the radio. It’s nostalgic for me personally.
Posted on 10/20/23 at 5:27 pm to JetDawg
ESPN's biggest money maker is forcing cable subscribers to buy their product whether they want it or not. When this comes to an end, what will they do then? I know a lot of people who hate sports and never watch but have ESPN forced on them. They definitely won't be buying it of their own free will.
Posted on 10/20/23 at 6:03 pm to JetDawg
Two comments...
1. Disney has invested a huge amount into the TV/Movie streaming platform. So far, nothing to show for it. It's the likely culprit for the anemic op profit. They are not alone as no one has figured out the model yet...including ESPN.
2. Breaking out ESPN as a separate reporting entity is likely a prelude to a sale.
Rodo
1. Disney has invested a huge amount into the TV/Movie streaming platform. So far, nothing to show for it. It's the likely culprit for the anemic op profit. They are not alone as no one has figured out the model yet...including ESPN.
2. Breaking out ESPN as a separate reporting entity is likely a prelude to a sale.
Rodo
This post was edited on 10/20/23 at 6:04 pm
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