|reply to NotHereNow |
Re: So, what he's saying is...
That's how I see it, too. I learned about how much the content providers are gouging the Cable companies on this website, so I have some sympathy for the high prices they charge.
The worry is that a bunch of people dumping ESPN does not make it any cheaper for the cable co. to provide it to the 40% of people who do want it.
Let's say CableTown is spending 100million dollars for ESPN, for 10 million subscribers, and charging those 10 million $10 each. Now, they offer a la carte, and charge $20 for ESPN. Only 4 million subscribers sign up. If they are still paying 100million dollars for ESPN, they're losing $20 million dollars and have to raise the price to $25.
I think it's fine, 6 million people are saving $10/month, so what if 4 million are paying an extra $15/month. But I can see how they are hesitant to do it, CableTown doesn't make more money and the billing becomes more complicated.
said by ISurfTooMuch:
It just means that ESPN is overpriced and needs to lower what it charges cable operators.
And so they ESPN must pay less to the teams and leagues, and the teams must pay less to the athletes, and the athletes are worth less to advertisers so Nike sells less shoes.
All good ideas but it will take quite a while to echo through the system other then a total collapse of the SPORTS INC. system, with an awful lot of people/money opposing it.
CATV fees are a small part of the big picture.