| I'll explain it less confrontationaly than you did. First, the argument you presented actually is evidence for what I wrote. > But the bottom is dropping out of the model because of cord cutters As I wrote, the market across the board is becoming efficient. This is restating my point. Previously the only option was for cable, now there are other options for consumption. This is increased market efficiency. > so now they have change and adapt to not getting flat fees for much longer. Yes they have to change from their previous fee structure, but there are many things they could've changed to that would've supported quality programming. Instead ESPN changed to an advertising model, which doesn't support it. (Ex. Why does HBO get showered with awards year after year? And how do they monetize viewers?). To understand the difference, imagine a directed graph with a transition between two nodes. You're too focused on the node it's leaving - instead I'd recommend focusing on the node it's arriving at (efficient market advertising model). Regardless of where you come from, if that's where you end up you will quickly produce fast-food content or you'll go under. ESPNs problem from before is not that they had a subscription model. It's that they had a bundled subscription model. It was bundeled with Cable, and they were making money from people who never watched them. Their revenue was inflated. Rather than trim and find the true medium, they're throwing it all away and going advertising. Sports can absolutely be supported via expensive subscription (see NFL Game Pass, NFL Sunday Ticket, MLB Packages, ...). Up to $400 / year for it. But ESPN is going a different route. One that will unfortunately turn them into the MTV of sports. But they won't be the only one. |