The giants have admitted it: The old model of TV distribution could be at an end. Disney said that ESPN programming could go direct to consumers ? eventually. According to CEO Bob Eiger, that won?t be happening for at least the next five years.
Ah, that qualifier.
And not at a good time. Bloomberg media analyst Paul Sweeney, on being asked if Disney was in trouble over ESPN?s performance, said that it might not be the ?consistent growth driver for Disney has it has been over the last five to ten years. ? The reality is that consumers are cutting the cord [on cable and satellite TV] on the margin. There are people that are not signing up for pay TV pages.? It?s affecting all TV companies, including ESPN, Disney?s major printing press for cash.
Why does Eiger think that he has at least five years? Because Disney has embraced the Innovator?s Dilemma, a Clayton Christensen concept in which a company?s leaders focus on what protects today?s gravy train rather than put resources into a new idea for the future. Disney?s eyes are on a current cash cow.
But that leaves an enormous opportunity for someone to disrupt the industry. How do you take on ESPN in sports? As is true for all cases of big companies being protective of their old way of doing things, you find the niches they don?t cover well or services they are reluctant to offer and go after appropriate audiences.
Read more at?INC.