| | | | | #1 Disney Profit Grows Despite ESPN | | The Walt Disney Company reported its second quarter earnings this afternoon, and while the company beat Wall Street earnings estimates, thanks to strong performances by feature films and theme parks, the companys media networks division, led by ESPN, continues to be a concern. | | WHY THIS MATTERS: ESPN is facing mounting subscriber losses losing more than 12 million since 2011 combined with higher programming costs with a new NBA deal and three additional college football playoffs in the quarter. Last month, ESPN laid off 100 on-air personalities and reporters in a bid to get some of its costs under control. | 5 TAKES: B&C | NY Post | The Wrap | Variety | Deadline
| | | | #2 CBS Inks New Streaming Deal with Affiliate Stations | | CBS announced that it has reached a new agreement with the CBS Affiliate Board that will help put live streams of affiliate signals on emerging digital streaming platforms. | | WHY THIS MATTERS: The agreement continues affiliate participation in CBS' steaming service, CBS All Access, and it creates a template that allows CBS and its affiliates to be available to subscribers of new virtual MVPDs such as Hulu, YouTube TV and other future entrants into the market. | 4 TAKES: B&C | Deadline | Variety | Fierce Cable
| | | | #3 Discovery CEO: U.S. Skinny Bundles Are Fiction | | Discovery Communications CEO David Zaslav told analysts today that the era of cheaper, sports-free skinny bundles is coming, but first, the U.S. has to wean itself off expensive and largely unwanted sports programming. | | WHY THIS MATTERS: Speaking on the companys earnings call, Zaslav lamented that current slimmed down offerings in the U.S. like DirecTV Now, Hulu Live and Sony PlayStation Vue arent true skinny bundles because they are laden with networks that are heavy with sports programming, which he called a bit of a stuffed turkey. Outside the U.S., sports-free skinny bundles are prevalent and Discovery networks are on most of them. | 5 TAKES: MCN | The Wrap | THR | Consumerist | Fierce Cable
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| | | | TV pundits have been predicting the demise of traditional MVPD service from the moment inexpensive online alternatives were introduced. But that still hasnt happened, because competitors havent matched pay-TVs trump cards: the widest variety of current content, the ability to easily record that content and watch at a time thats convenient, and the ability to fast forward through ads with their DVR.
Peter Fondulas, Principal at Hub Entertainment Research
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