By Brad Hubbard | @bradhubbard
The head of ESPN, John Skipper, did an interview with the Wall Street Journal where he talked about cord-cutting, Apple, and ESPN’s plans.
Skipper says that Apple is close to being a bigger player in the TV service realm but are ‘frustrated by their ability to construct something which works for them with programmers.’ The Q & A goes on to touch on Sling TV and sports rights.
The major hurdle Skipper and ESPN have, along with other outlets, is the handoff from traditional distribution to digital combined with the rising cost of sports rights.
The fact is this, digital doesn’t pull in the dollars like traditional cable and satellite distribution does. Hence people are reluctant to do anything that could effect the cash cow because that cow is how ESPN affords the $1.9 billion a year for NFL rights.
Skipper has a tough job, ‘how do you make the handoff and maintain or increase revenue at the same time?’ Not sure there is an answer until but you are at some point going to be forced to make decision. That moment is coming closer with the evidence being the 7 millions subscribers ESPN has lost over the last two years.
I think Skipper very much understands the situation and see’s the gathering storm. Some sign makers on College GameDay differ and they could be right but Skipper doesn’t sound to me like someone who is panicking. The next questions becomes, will the Disney board panic if subscribers continue to decline?