23 October, 2013

Why ESPN Is Worth $40 Billion As The World's Most Valuable Media Property

Why ESPN Is Worth $40 Billion As The World's Most Valuable Media Property: There are fears that spending on sports rights fees will crimp ESPN’s profitability going forward as competition heats up from Fox Sports and NBC Sports. ESPN recently agreed to double the annual rights fees it pays for Major League Baseball and last year reached an eight year, $15.2 billion deal to broadcast the National Football League.

The reality is that the value of sports on television is only increasing, as much of the viewing public moves to watching programs on delay, limiting the effectiveness of advertising. It is a problem that ESPN does not have to worry about as 99.4% of sports events on TV are watched live, according to Disney CFO Jay Rasulo.