It's been a less-than-ideal year for ESPN (NYSE: DIS), with the sports news giant struggling with one bad press story after the next. As a result, there are major questions about the direction the company is heading.
With ESPN struggling, a new wave of sports media companies is hoping to pick up market share. PlayersTV Digital (PTV) is one such example with its vision to "disrupt the conventional hierarchy of the industry." And with 50+ professional athletes as investors, partners and content creators - including former Major League Baseball outfielder Ken Griffey Jr., National Football League tight end Travis Kelce and National Basketball Association player Damian Lillard - PTV is on the right path.
What's Happening At ESPN?
The first wave of bad news hit when ESPN began to lay off some of its most well-known and well-liked on-air talent. This included Jeff Van Gundy, Suzy Kolber, Max Kellerman and Keyshawn Johnson.
On top of that, remaining on-air talent was asked to accept smaller raises or in some cases, agree to a salary cut to stay onboard.
As if that wasn't bad enough - both for the affected employees and the company as a whole - it came to light that ESPN generated more than $12.5 billion in revenue for the nine months ending July 1. That's a lot of money, raising the question of why the company had to cut so many people.
Another problem facing the company is that its streaming service - ESPN+ - lost subscribers for the first time in five years.
In a second-quarter earnings call, The Walt Disney Co. reported a slight decrease in ESPN+ subscribers, dropping from 25.3 million to 25.2 million. This marks the first time the streaming service has seen a decline in its user base since launching over five years ago. Additionally, the average monthly revenue per ESPN+ user decreased from $5.64 to $5.45.
Last month, more bad news struck with ESPN+ raising its monthly subscription fee from $9.99 to $10.99 and its annual fee from $99.99 to $109.99. The price hike also impacts the Disney Bundle plans, which comprise ESPN+, Hulu and Disney+. The Basic Bundle plan will increase from $12.99 to $14.99, while the Premium Bundle plan will go up from $19.99 to $24.99.
There are a lot of moving parts at ESPN right now. The company is at its most vulnerable state in years, leading competitors to consider how they can seize the moment.