The rise and fall of ESPN: Inside Disney’s $11 billion meltdown

The network that charged $9 per cable subscriber and made a billion dollars monthly — now bleeding 30 million viewers and struggling to survive.

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By The Numbers

100M

subscribers at peak

$9B

annual sports rights committed

-30M

subscribers lost since 2011

What They Nailed Early

Created the first 24/7 sports network with SportsCenter as the anchor. Secured exclusive sports rights and leveraged cable monopolies to charge premium fees. Built personalities into stars that young audiences loved.

What Changed

Cord-cutting accelerated as streaming replaced cable. Social media delivered highlights instantly, killing SportsCenter's edge. Tech giants like Amazon and Apple outbid ESPN for sports rights. Sports leagues went direct-to-consumer, cutting out the middleman. Revenue dropped while fixed costs soared.

Where it Landed

Down to 70M subscribers from 100M peak. Launched $30/month ESPN Unlimited streaming service. Multiple rounds of layoffs. Gave up 10% equity to retain NFL rights. Still massive but the flywheel is reversing.

The Principles

Infinite money glitches don't last. ESPN's ability to raise prices at will bred overspending that became fatal when subscriber decline hit.

Middlemen get disintermediated. When both suppliers (leagues) and distributors (streaming) can go direct, your bundling power evaporates fast.

Build cash reserves in good times. Spending like there's no tomorrow in the 2000s left ESPN with no cushion when the market shifted hard.

Builder's Takeaway

If you're riding a monopoly tailwind, remember:

•

Stay frugal even when money prints — rainy days always come eventually

•

Your distribution advantage can vanish overnight when technology shifts

•

Fixed cost commitments kill you when revenue reverses direction

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