TheDeeble
Guy on the Couch
- Joined
- May 6, 2007
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AT&T/DirectTV, Comcast, Charter, Dish, and whoever, all pay a fee per subscriber to every channel broadcaster that they air, Sports networks, showtime, ETC. Currently, ESPN charges $7.21 per subscriber for their channels. So out of our cable bill that we pay every month, $7.21 of it is paid to ESPN by the subscriber that you get your service from. ESPN fees are about 54% higher than any other network, Which is where the money to pay NFL tv rights, SEC and other leagues money comes from. So either ESPN is wanting more or AT&T/Direct TV wants to pay less. With all the streaming going on and less of us subscribing thru traditional cable services, I think ESPN has been losing money and wants a bigger cut.
I'd guess it's both. ESPN will probably be a part of Disney's streaming service. Disney probably isn't worried because they think everyone will sign up for their service. So they ask for better prices and if it doesn't go their way, they think they'll just make it up on streaming because people want their sports and disney.
AT&T is in a losing battle here. They're already losing customers as more people cut off Direct Tv/U-Verse. So if they cave to Disney, they'll probably raise prices to offset which will in turn speed up customer loss. Or they reach no deal with Disney, and customers are mad about losing sports/disney so they leave AT&T/Direct TV.
I don't think this will just be limited to Direct Tv/ATT. Xfinity, Dish, and anyone else will probably face the same thing when their contract is up with Disney.