Gameday for Disney to Boost ESPN Growth

www.wsj.com

Miriam Gottfried:

Assuming Disney already increases the prices it charges cable and satellite companies for ESPN by 5% a year, bumping that up to 6% as it signs new deals would boost fee revenue by 4% a year to $12.56 billion from 2016 to 2022, MoffettNathanson estimates. This assumes its subscriber base declines at a compound annual rate of 2%. If Disney can use minimum penetration guarantees to add back 2.5 million of the subscribers it lost to skinny bundles, it could get an additional $400 million in fee revenue over the period, the firm says.

I mean, if ESPN is really looking for "growth" by boosting fees and putting in more penetration clauses, good luck with that. Literally short-term gain for long-term pain. So of course that's exactly what they'll do. 

Read more...
Linkedin

Want to receive more content like this in your inbox?