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<blockquote data-quote="RonJohn" data-source="post: 813195" data-attributes="member: 2426"><p>The big things that ESPN has depended on as they rose to behemoth power are: No two providers contracts with ESPN ended at the same time, and at least some people were interested in sports. That power is coming to an end because so many people are cutting the cord, and the TV providers are starting to thumb their nose at ESPN. ESPN put on a campaign to get people to abandon Comcast since the ACCN wasn't available on Comcast. I don't think that campaign had much effect.</p><p></p><p>The typical end of a contract would happen like this: The contract ends the week before college football starts. Both sides negotiate shrewdly. ESPN started advertising that college football might not be available on Dish/DirecTV/Comcast/Charter/etc (whichever one had the contract ending) and that fans might want to switch to another provider. The provider finally agreed to whatever outrageous price ESPN wanted in order to not lose 30-40% of their subscribers. Grandmothers who only watch the Hallmark Channel ended up paying $8-$10 for the main ESPN channel alone. </p><p></p><p>I have seen estimates from 5-6 years ago that the entire ESPN suite of channels cost the providers about $16 per subscriber. ESPN has been making most of their money from subscriber fees. The majority of those subscriber fees are from people who never, ever watch ESPN. Those people don't know that they are paying $16 for ESPN, they only know that their cable bill is too high.</p><p></p><p>That business model is changing, but for the last 20-30 years, yes it is true that nothing mattered to ESPN except ensuring that every TV subscriber is required to have ESPN and continually raising the rates they charge.</p></blockquote><p></p>
[QUOTE="RonJohn, post: 813195, member: 2426"] The big things that ESPN has depended on as they rose to behemoth power are: No two providers contracts with ESPN ended at the same time, and at least some people were interested in sports. That power is coming to an end because so many people are cutting the cord, and the TV providers are starting to thumb their nose at ESPN. ESPN put on a campaign to get people to abandon Comcast since the ACCN wasn't available on Comcast. I don't think that campaign had much effect. The typical end of a contract would happen like this: The contract ends the week before college football starts. Both sides negotiate shrewdly. ESPN started advertising that college football might not be available on Dish/DirecTV/Comcast/Charter/etc (whichever one had the contract ending) and that fans might want to switch to another provider. The provider finally agreed to whatever outrageous price ESPN wanted in order to not lose 30-40% of their subscribers. Grandmothers who only watch the Hallmark Channel ended up paying $8-$10 for the main ESPN channel alone. I have seen estimates from 5-6 years ago that the entire ESPN suite of channels cost the providers about $16 per subscriber. ESPN has been making most of their money from subscriber fees. The majority of those subscriber fees are from people who never, ever watch ESPN. Those people don't know that they are paying $16 for ESPN, they only know that their cable bill is too high. That business model is changing, but for the last 20-30 years, yes it is true that nothing mattered to ESPN except ensuring that every TV subscriber is required to have ESPN and continually raising the rates they charge. [/QUOTE]
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