[opendtv] Re: News: Fox News Wants To Double License Fees

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Thu, 19 May 2005 08:20:11 -0400

At 5:33 PM -0700 5/17/05, John Willkie wrote:
>Craig and I differ on this point, but I get my assertions from the Wall
>Street Journal.
>The average cable bill contains $5 - $6 per month that goes directly for
>sports programming.  ESPNs get more than $5 of that amount.

During the last round of retrans consent "holdups," Disney pushed to 
raise the monthly fee for the ESPN channels to ~$3 - the going rate 
had been about $2.70. There may be some systems paying more than $3, 
but most still pay less.

>And, those are historical, not leading, figures.
>I've been saying for years that sports on cable needed to become a separate
>tier.  Even cable companies are saying it now ...

There are already sports tiers on virtually every digital cable 
system. ESPN has resisted being moved to a pay tier because they are 
getting $2-3/mo. from EVERY extended basic subscriber.

Sports is a MAJOR contributor to premium subscription revenues today, 
especially for the DBS companies which do offer multiple sports 
packages. I know of some sports nuts who subscribe to both cable and 
DBS, and have multiple TVs so that they can monitor all of this 
stuff. Kind of like turning your home into a sports book. Actually, 
that's exactly what some of these folks are doing, using the Internet 
to place their bets...

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