Sports Channels and cable tier pricing.

[Langhorne]

Amidst all the clatter about the new NBC/Nascar deal, and the imminent start up of Fox Sports 1, I was wondering how all these sports channels are going to find their way into the same tier on cable channels, since the price to consumers for both the new products (FS1 and NBCSN) will no doubt go up (over the channels they are replacing) to pay for these expensive deals. ESPN is, if I understand it correctly, one of the most expensive channels on cable. Will consumers pay even more to acquire FS1 and NBCSN if included in the same packages? The current landscape of declining ratings would not seem to support increasing the cost of the product, would it?

[Z28]

There was a story about this a week or so ago. Cable and satellite providers are looking at ways to separate expensive sports channels from their lower cost plans because they cost so much. The flip side is that some subscribers have cable primarily because of those sports channels. Complicating that is Comcast being the owner of NBC and many other channels including their sports channel, while ABC not only owns ESPN but so many other channels, same for CBS and FOX and they want providers to carry all their channels. This is the often seen fight when FOX or ABC channels disappear from a cable satellite provider for a short time because they can't negotiate the rights fees.

The only two things for sure are it will work out because all involved just want to make money and the viewers will pay more.

[rodneyh]

ESPN is, if I understand it correctly, one of the most expensive channels on cable. Will consumers pay even more to acquire FS1 and NBCSN if included in the same packages? The current landscape of declining ratings would not seem to support increasing the cost of the product, would it?

It is the most expensive sans some foreign language and premium movie channel, about $5 a month.

Disney was smart a few years ago when they started getting stuff off of ABC and putting it on ESPN, British Open, BCS Championship game, etc.

[Grizzlor]

Yes, Verizon has been separating sports from their lower packages, although those sports packs do not include any of the expensive channels like ESPN, or your regional networks, so I don't see the point. Fox Sports 1 is looking to up the old Speed carriage by like 85 cents per subscriber, which is actually a massive hike. This leads back to my point, as to why networks are overpaying for sports content, because they just dump the cost off on every cable operator and customer.

[SamC]

The ESPNs are in fact the most expensive channels, and that cost is passed on to you. And they are super profitable to Disney.

The point is that now we have (not counting the sport specific channels like NFLN) a four way competition (Disney-ABC/ESPN, CBS-CBS/CBSSN, Comcast-NBC/NBCSN, 21st Century Fox-Fox/FS1) a huge bidding war for every major sport when the rights come available. And they are bidding with our money. The leagues/conferences/series, etc are going to get richer, and we will pay more.