Disney Chair & CEO Bob Iger yesterday said that he sees ESPN as a media property that "could be eventually sold directly to consumers like Time Warner's HBO, but not in the next five years," according to Matthew Belvedere of CNBC.com. Iger: "If we end up seeing more erosion in the so-called multichannel (cable and satellite TV) bundle, quality will win out." He added, "While the business model may face challenges over the next few years, long term for ESPN ... they'll be fine. They have pricing leverage, too" (CNBC.com, 7/27). Iger said that ESPN, which is majority-owned by Disney, "could use information from that direct consumer relationship to customize its product and enable more personalization, which will engage fans in a 'much more effective way.'" The WALL STREET JOURNAL's Shalini Ramachandran noted ESPN "already has indicated it has interest in streaming some sporting events directly to consumers." When ESPN last year renewed a long-term rights deal with the NBA, the net "began laying plans for an online video service that would allow people who aren’t pay TV customers to stream live regular season games." ESPN earlier this year "created a streaming service to offer the ICC Cricket World Cup to American fans without requiring that they have a cable subscription." But selling ESPN’s channel, as a whole, outside the pay TV bundle "would be a major escalation of that strategy" (WSJ.com, 7/27).
GREATLY EXAGGERATED? MULTICHANNEL NEWS' R. Thomas Umstead notes ESPN has "made headlines recently over the departure of high-profile talent and a net loss of subscribers in a very competitive and evolving television marketplace." But the programmer’s position as the "unquestioned leader in sports television doesn’t seem to be in jeopardy of collapsing anytime soon, even if its sturdy foundation may show a crack or two." There is "no doubt ESPN took a PR hit with the recent loss of high-profile -- and high-priced -- personalities in Bill Simmons, Keith Olbermann and Colin Cowherd." However, ESPN’s "virtual DVR-proof live sports programming continues to draw viewers." The net "finished fifth among all cable networks in primetime second-quarter ratings," and the return of college and pro football "should help ESPN continue its perennial run as cable’s fourth-quarter primetime ratings king." For now, it "seems a stretch to say that ESPN is struggling to score points just because it has decided to punt the ball a couple of times" (MULTICHANNEL NEWS, 7/27 issue).
STAMPEDING HERD: In N.Y., Bob Raissman writes the controversy surrounding Cowherd’s comments about Dominican MLBers "only raised his profile," and the "absolute truth is he will offend again if he goes to work at Fox Sports." For those who "think ESPN, which dumped Cowherd Friday, is delivering the Foxies damaged goods, think again." Raissman: "Now everyone knows his name." A source said that Fox was "considering getting Cowherd involved in its coverage of MLB’s postseason by giving him a role on playoff and World Series pre- and post-game shows." Raissman notes this is the "kind of TV face-time he couldn’t get at ESPN," but the latest controversy "could put the kibosh on that" (N.Y. DAILY NEWS, 7/28). SI.com's Richard Deitsch wrote ESPN management "suddenly finding religion on Cowherd’s content was a laugh riot." For years, the net "wasn’t just fine with Cowherd’s socioeconomic mumbo-jumbo; it celebrated it." What caused ESPN to "bail on Cowherd were a number of factors, from the pressure amplified from the MLBPA to a wave of bad PR on social media to the fact that he’s heading to Fox Sports this fall." Deitsch: "I have no doubt many ESPN employees were ticked off with what Cowherd said, especially those working for ESPN Deportes, but when has ESPN employees being ticked off at commentary from talent mattered?" (SI.com, 7/27).
