johnbragg
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RE: Theory on ESPN, Disney, and the Big 12 (cord-cutting included )
(11-13-2017 10:39 AM)BadgerMJ Wrote: (11-13-2017 10:00 AM)quo vadis Wrote: (11-13-2017 09:30 AM)BadgerMJ Wrote: (11-13-2017 06:08 AM)TerpsNPhoenix Wrote: (11-13-2017 03:36 AM)DawgNBama Wrote: I think I know what Disney-ESPN/ABC is up to now. Yes, cord-cutting is gradually affecting cable tv, but not at the speed we think it is. All of these ESPN layoffs, in the name of "cord-cutting " are nothing more than a red herring for what is really going on at ESPN. Part of why ESPN is screaming about cord-cutting so much is that they're trying to get all of the pro-leagues to lower their rights value as well as college sports leagues. Thus, we can conclude that ESPN is saving $$'s, but for what reason?? Disney's bid to try to take over FOX provides the answer, IMO. Not only does Disney want FOX for its movies, it wants it for its sports league rights also!! ESPN is trying to build a coast to coast sports broadcasting monopoly. It doesn't just want the SEC & the ACC, it wants all of the Big Ten and PAC 12 too, not to mention the valuable programs in the Big 12 for college sports.
AA: Disney purchase of Fox
"CNBC’s David Faber dropped a bombshell Monday, reporting that ESPN parent company Disney has held talks with 21st Century Fox about buying most of Fox’s assets, but not Fox News, Fox Sports, or the Fox broadcast network." *Bold is mine
AA: What a Disney/Fox deal means for ESPN's streaming services
"If Disney and Fox get into handshake mode and start signing dotted lines, Disney would take over Fox’s European and Asian sports networks, Sky and Star. And with ESPN preparing to launch a streaming service in 2018, the inventory that the two international networks can bring would be a boon."
"Sky Sports is dependent on English Premier League, boxing, darts, golf, F1 and other sports. Star Sports in India has a lot of cricket. ESPN won’t stream EPL games as they belong to NBC and golf to Golf Channel, but the other sports are pretty much fair game. ESPN is increasing its boxing inventory and in the U.K., Sky is known for its excellent stable of fights and quality boxing production."
I just don't get that. If Fox would keep Fox Sports as part of the deal, it would make absolutely no sense to give up properties that would make ESPN stronger and increase it's streaming services. Talk about cutting one's own throat.
It it were me at the negotiating table, I'd try and work something out where as Disney would acquire the Fox Studios movie catalog (including the X-Men and Fantastic Four to add to the MCU) but in return would want a portion of their sports rights (ie: college sports). If Fox is going to build around News and Sports, why not try and swap something THEY want for something YOU want.
Because, apparently, it's not a swap, it's a sale: FOX is trying to raise money, because right now, they need money, not sports properties.
If that's the case, it still makes no sense.
Fox is keeping Fox Sports which must mean they see that as a way to make money so why sell something to your competition that's in direct opposition to that?
Seems like short term thinking.
No, if you read the original article, Fox is trying to sell because they don't think a player of their size is viable in the current environment. They've leaked the talks with Disney, possibly in an attempt to smoke out offers from Amazon, Google, Apple, Facebook, Microsoft etc.
They're not keeping Fox Sports, Fox News, the Fox Network and the Fox local TV stations because those properties are or aren't profitable. They're keeping them because a Fox-Disney deal would never get US Anti-Trust approval if it meant one company owning 2 OTA networks, or ESPN acquiring it's biggest competitor. Fox News Channel may be too difficult to untangle from Fox Sports 1 and the broadcast network. (Or possibly Fox News doesn't generate enough profit to balance out the negative reputation carried.)
I'd expect that, if a Disney-Fox deal went through, you might then see the Murdochs & Co sell the Fox US TV unit. Or possibly they sell the whole package to Amazon or Apple or Bill Gates and just cash out.
EDIT: The fact that ESPN would be picking up US streaming rights to some boxing, darts, golf, Formula 1 and cricket isn't really a big factor either way.
(This post was last modified: 11-13-2017 01:14 PM by johnbragg.)
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