Re: Big TV deal... Fox Sports purchases Sports Time Ohio
Originally Posted by Unassisted
This isn't true. The big money in a sports network comes from getting it onto cable/satellite systems as a BASIC channel. Having every cable/satellite subscriber in Reds Country effectively paying, say 75 cents a month, for the channel that carries the Reds is far more lucrative than a channel that has to be marketed as a subscription. This way, the money comes not only from fans, but from the people who subscribe to cable/dish and wouldn't watch a Reds game if it was played in their next-door neighbors' backyard.
Basic cable/dish subscribers are paying ~$4 a month for access to ESPN's channels. They just don't feel it because it isn't itemized on their bill, but it's money that goes back to ESPN in the form of per-subscriber license fees.
So, the end result is that cable rates still go up, only I no longer have a choice?
Good way to lose cable customers.
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