people are still trying to view "ESPN" as all the Disney Cable Network revenues or most of it
again look at the numbers
Cable Networks
Operating income at Cable Networks decreased $207 million to $1.4 billion for the quarter due to decreases at ESPN and the Disney Channels, partially offset by an increase at Freeform.
so in A SINGLE QUARTER of a single year (three months) operating income (similar to profits before EBITDA) is down $207 million dollars to $1.4 billion
so $1.4B + $207M = $1.607B and $207M / $1.607B = 12.88%
and again that is at ALL Disney Cable Networks and it is probably safe to say that ESPN is responsible for a very large chunk of that loss
they are down millions of subs over the last couple of years and over a million over the last TWO MONTHS
there was also the survey where 56% of people would ditch ESPN and ESPN II to save $8 per month
http://time.com/money/4181145/cancel-esp...e-channel/
so they are not exactly staring at a situation where people are hoping they stay around and are successful and turn it around.....they are in a situation where over 50% of people would just assume they go away at least from their cable TV lineup and their cable TV bill
they are in a situation where revenues are dramatically down as well as operating income and where people are looking for them to get off their cable bill at the same time they are rolling out more networks to try and cram on people and they are expecting to charge people 33% MORE over the next couple of years (probably exclusive of the new networks they hope to cram like the ACCn)
they are massively bloated as far as employees, networks and general overhead and they only seemed to have woken up that there is a problem about 3 days ago and their answer seems to be to "tweak a few things and try and charge a bit more because people demand us"
the real issue as far as Disney is concerned is when you move to the reality that what everyone is trying to say is "ESPN profits" is actually DISNEY NETWORKS PROFITS and that most of the losses ARE most likely ESPN LOSSES is the fact that ESPN represents no synergy for Disney
with everything else like theme parks, movies, DISNEY networks, video games, licensing ect you have movies that spin off Disney TV shows and theme park ideas and licensing and video games.....you have Disney TV shows that spin off movies, theme park attractions, licensing and video games and probably even the chance to make a video game that spins off a TV show or a movie and theme park attractions and licensing
sports programming fits NOWHERE in that unless you are going to have a big bucket of keith oberman crap as a Christmas gift or the dunk in a bucket of festering keith oberman crap theme park ride or keith oberman makes an ass of himself on the big screen movie or maybe a Chris Beerman back back back back ride or talking bobble head doll or movie
and most of that garbage is chasing ESPN viewers off in droves and their answer seems to be dump Beerman and oberman the idiot and replace them with similar idiots that are even dumber
breaking out ESPN and perhaps ABC and spinning them off on their own and going back to worrying about the things that have synergy like fixing the video games, Disney programming and better movies makes a lot more sense Vs trying to fix the one thing that really does not fit in with the rest of the overall company especially when the rest of the overall company (less the one area that ditched the failed video game console) at least have overall revenue increases even if profits were down.....it is much easier to fix profit issues in the face of increasing revenues Vs fix them in the face of declining overall revenues
all the more so when it looks like the freight train of ESPN losing subs and revenues and profits only looks to be gaining steam and when it is pretty clear that a large portion of the population is not interested in paying what ESPN currently charges