ESPN Needs to Cut Tens of Millions in Costs




ESPN has been hard hit by cord cutting recently. Some news groups have reported that ESPN is even losing as many as 10,000 subscribers every day.

Now multiple sources said ESPN has been tasked with paring tens of millions of staff salary from its payroll including staffers many viewers and readers will recognize.

This all seems to be in an effort to counter the losses that are happening as more Americans become cord cutters. Some of it is being countered by the growing subscriptions to live TV services such as Sling TV, PlayStation Vue, and DIRECTV NOW; however, reports are they pay lower per-subscriber costs to ESPN than does a traditional pay-TV service.

ESPN is not only trying to cut costs but also is working on its own standalone ESPN streaming service. Reports are this will not offer live feeds of ESPN channels. It seems this new service will offer additional coverage and more live games than air just on ESPN.

Now ESPN is still very profitable, the problem is it just is not as profitable as it used to be for Disney. Though ESPN can still be what saves Disney TV in the long run. As many Americans see live events like sports as the number one reason to pay for a live TV service whether it be a streaming service or traditional pay-TV service.

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