The per-household subscription fees ESPN charges cable systems amounts to “a tax on every American household,” Liberty Media Corp. CEO Greg Maffei said Monday at an investor conference sponsored by UBS AG in New York City. ESPN charges are the highest of any cable channel, according to SNL Kagan, which estimates those per-subscriber fees have jumped 42% since 2006 to $4.69. By comparison average cable channel fees were up 24% for that period to 26 cents a month. The problem isn’t just ESPN, Maffei said later, because regional networks such as Fox Sports also contribute to the overall escalation of fees networks pay to carry events. NFL, for example,
is negotiating contracts that could raise broadcast networks’ fees by 60% to about $3.2 billion a year, the Wall Street Journal noted. Some executives think it might be better to position expensive sports channels such as ESPN on a separate tier that would allow uninterested subscribers to opt out and lower their bills. Otherwise, rising sports rights fees could lead many consumers to drop services. MTV Networks and Nickelodeon owner Viacom Inc.’s CEO Philippe Dauman also singled out ESPN as a significant factor in higher costs because it is “double the cost of all our networks combined.” Even though they still resist the idea of a la carte packaging, media exec are beginning to see the merits of selling smaller, cheaper programming bundles as a way to lure or retain cost-wary consumers.


It is no wonder ESPN is Disney’s most lucrative cash cow.
At the risk of losing my man card, I have never watch a minute of any of the ESPN channels in well over a decade.
Until ala carte is no longer a pipe dream, I can only hope they will move it to a sports tier and reduce the cost of the basic tier.
I would be more than happy to not subscribe to ESPN if my cable company would only give me the choice.
I was reading the L.A. Times sports page today and I noticed ESPN has a monopoly on every single college bowl game. If you don’t have cable or satellite TV, which many poor people can’t afford, you can’t watch ANY bowl games.
Doesn’t this type of monopoly violate any anti-trust laws??
Threaten a separate sports bundle of channels and
watch ESPN renegotiate more reasonable yet still
rising rates to avoid losing a solid quarter of their
current forced to subscribers. ESPN is ridiculously overpriced compared to other channels. I would drop a sports bundle because most MNFootball games suck and my local Niners and Raiders get local coverage on Mondays and Thursdays on broadcast. Separate bundle or not, their will be a reckoning with basic subscribers.
I only pay $4.69 a month for ESPN? That’s 5 cents for every time I watch Sportscenter. Seems like a bargain. Thank you Mr. Maffei for enlightening us. The problem isn’t ESPN. It’s the 26 cents we have to shell out for the other 200 channels nobody ever watches.
Gary,
The problem with that, is, many of us do NOT watch ESPN, myself included. So, why should I have to subsidize ESPN’s outbidding of every major sport?
Also, this is JUST for ESPN, each one of their other networks, including ESPN2, is extra, as are the RSN’s and all the other sports channels. Most of us non-watchers could probably save about $10-15 per month by just opting to NOT receive the sports networks.
Even with their recent big-money acquisitions (the “Monday Night Football” renewal, Wimbledon, the NCAA Bowl Championship Series), ESPN simply charges too much.
Hopefully, they’ll hold the line for a few years on what they charge to cable operators.
If ESPN wasn’t such a greedy monopoly thier prices wouldn’t be so high. Thats because their paying billion dollar contracts for sports that have been on free broadcast television for over 40 years. Some of those are The BCS national championship game, other BCS games and bowl games, and Monday Night football. So now people who have pay TV are having to pay for what used to be free if they watch it or not. Its a disgrace for ESPN do this especially when the economy is bad and so many people are hurting for money. Something needs to be done about this. I hope ESPN has it blow up in their face one day and they lose thier shirt. Hopefully more people will realize this and cut the cord to stop feeding the pig.