According to ESPN president John Skipper is frustrated with the way content companies are treating it in regards to the Apple TV deals. But this may change in the mid 2016 period. At the point we have some information about the potential system Apple allegedly is planning to offer on its featured Apple TV settop box. On conversation with the ESPN head, we come to know details , as below Does Apple have a path to being a big player in the TV industry in the future ?
Mr. Skipper: They are creating a significantly advantageous operating system and a great television experience and that television experience is fabulous for sports. We are big proponents of believing it would be a fabulous place to sell some subscriptions. We have ongoing conversations. They have been frustrated by their ability to construct something which works for them with programmers. We continue to try to work with them. Skipper also discusses services like Sling TV which include ESPN service without a standalone cable subscription, adding that he believes announcements of similar packages to attract newsubscribers will come out of 2016.
In your view, will the people who sign up for streaming TV services from Sony, Sling TV, and possibly Apple make up for losses in traditional pay TV subscribers? Mr. Skipper: We think that it can be a significant mover in helping us navigate the next few years. We see the Sling TV numbers, which are significant. We’ve had discussions with Apple. I believe in 2016 there will be further announcements on other kinds of packages….that will get younger subscribers into the market. We don’t think of it as an offset. It was simple before when we had subscription and television ad revenues. Now we’ve got more buckets. We have new directtoconsumer, digital advertising [revenues].
ESPN presently has a presence on the Apple TV, the iOS, and also the web with its “WatchESPN” app. It has not been clear as to what Mr Skipper is implying with his remarks, may be mulling on an HBONOW type standalone membership form of the ESPN, for a month to month rate basis ormaybe incorporate into Apple’s new service. We might have to wait for a decision to be made in
this regards.
