ESPN 3D to be Scrapped by Year-End For ‘Limited Viewer Adoption’
Three years and a day following the launch of ESPN 3D (CED June 11 p1), the network has pulled the plug on its struggling 3D channel, citing “limited viewer adoption of 3D services to the home.” ESPN spokeswoman Amanda DeCastro told Consumer Electronics Daily viewership of ESPN 3D isn’t rated by Nielsen, but, while the network can’t provide specific viewership data, the number of viewers was “extremely limited” and “just wasn’t growing.” 3D TV “hadn’t taken off like HD was,” and company executives decided “it was time to discontinue it” she said. ESPN is committing its 3D resources to other products and services “that will better serve fans and affiliates,” she said.
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ESPN hasn’t completely abandoned 3D, DeCastro said, saying “nobody knows more about sports in 3D than ESPN.” The network “will be ready to provide the service to fans if or when 3D does take off,” she said. Regarding what criteria would convince the network to resuscitate 3D -- such as number of 3D TVs in the market or viewership on other 3D channels -- she would only say, “If we see a need to be back in the space, we will.” ESPN will “continue to experiment” with new technologies including Ultra HD production tools, she said. A decision hasn’t been made on what to do with the 3D channel, she said.
Regarding the impact of the decision on two of the most visible ESPN executives associated with the network’s pioneering 3D efforts -- Bryan Burns, vice president-business planning and development, and Chuck Pagano, chief technology officer -- DeCastro said the company “is not commenting on specific individuals.” She said that for Pagano, 3D TV was a “very, very small part of his role” after the buildout of the 3D channel. On whether any layoffs would be associated with the 3D decision, she cited layoffs underway at ESPN on Wednesday but wouldn’t discuss specifics about personnel involved, including specifically Burns, who for weeks has not responded to our queries about the health of ESPN 3D as the network approached its third anniversary. ESPN also had a widely publicized round of layoffs in May.
ESPN executives told Consumer Electronics Daily last fall that in hindsight they wished they had waited two years for 3D TV set sales to develop before launching the 3D channel (CED Oct 25 p1) but still remained committed to the technology and its chance for market success. Sony, which was an early supporter of 3D sports on the production, playback and sponsorship side, said “while we maintain a close partnership with ESPN on production at every level, we do not comment on the business decisions of other companies.” When we asked about Sony’s current commitment to 3D TV, spokesman Rob Manfredo would only say that Sony continues “to produce 3D cameras, movies and home entertainment and that more TVs in our range are 3D capable than ever before.”
ESPN plans to air more live 3D programming before year-end, DeCastro said. Upcoming live events, according to the website, were the Sky Big Air Final from the 2013 X Games in Aspen, Colo., which took place in January, a qualifier game for the 2014 World Cup between the U.S. and Mexico that was played in March, and a Little League World Series game between Goodlettsville, Tenn., and Petaluma, Calif., from last August.
We asked our local cable provider, Time Warner Cable, if any 3D channels were available in our viewing area in Manhattan and were told there was one. The customer service rep wasn’t sure what the offering was because “I haven’t had too many people ask me that because not too many people have a 3D TV,” he said. After putting us on hold, he came back and reported Time Warner offers three 3D channels: ESPN 3D, 3Net and a 3D pay-per-view channel.
Reaction to ESPN 3D’s impending closure was slow to materialize Wednesday, and the few who commented expressed little surprise. “3D TV is back in the news, but not in a good way,” said Paul Gagnon, DisplaySearch director-North American TV research, of ESPN 3D’s demise, in a blog post Wednesday titled, “Is 3D TV Dying in the US?.” ESPN 3D’s death “had been rumored for some time in the tech press stemming from a 2011 decision by AT&T U-Verse to stop carrying 3D channels and a significant lack of 3D news coming from ESPN recently as they announced their fall college football coverage,” Gagnon said. “But really … is anyone surprised?” Given that 3D TV “has shown no real growth in the North America market,” Gagnon said, it’s “understandable that content creators are hesitant to continue investing in costly new technologies if the viewer base is not growing at an attractive rate. However, this move by ESPN might signal that the momentum has shifted away from 3D in the US and TV manufacturers and retailers would be wise to take note."
Immediate speculation centers on whether ESPN 3D’s folding would have a negative ripple effect on the few other 3D TV programming services available. Executives from 3net couldn’t be reached for comment at our deadline, nor were London-based executives from 3D-active BSkyB or the BBC available, due to differences in time zones. One possibly telling bellwether: BBC on Monday released its extensive TV schedule for the upcoming Wimbledon tennis championships without a single mention of 3D, and BBC executives haven’t responded to days of queries. Last year, BBC covered Wimbledon extensively with 3D feeds