April 1, 2012 11:11 AM Subscribe
The Dodgers tax.
posted by VikingSword (104 comments total)
8 users marked this as a favorite
'The group that paid an astronomical sum for the' The Dodgers baseball 'team will seek big money for broadcast rights. That cost will end up on your pay-TV bill, even if you don't watch sports. But how long can TV services expect the millions of' Americans 'who aren't sports aficionados to pay a premium for channels they don't watch? The demands from sports networks are outsize versions of the increases obtained by other channels; together, they've driven up the average monthly cable bill from $40 to nearly $80 over the last decade. That's far faster than the rate of inflation. This trend seems impossible to sustain.'
This is of course not limited to just baseball. The economics of spectator sports affects the entire paid viewership model.
'When it comes to basic cable, ESPN is perhaps the biggest offender. Media tracker SNL Kagan estimates that ESPN alone sets distributors back $4.69 a month for every subscriber.
You can expect that figure to continue to inch higher, and some in the industry are more than a bit concerned. Speaking at a media conference earlier this month, Liberty Media (LMCA) CEO Greg Maffei suggested that there will come a point when ESPN's escalating fees will become a "tax on every American household."
We may already be there. '