The interesting part is whether ESPN will have to reveal publicly the payment it extracts from the cable and satellite companies to carry the network’s sports programming. We noted in December that sports networks account for as much as half the cost of a cable subscription.
If ESPN is forced to reveal what it charges for its programming to carriers like Dish, DirecTV (NASDAQ: DTV), Time Warner Cable Inc. (NYSE: TWC), Comcast Corp. (NASDAQ: CMCSA) and others, the information could stoke a revolution against the current packaged subscriptions the carriers offer. Because all subscribers subsidize the sports channels — whether they watch them or not — carriers have been reluctant to offer subscribers a sports-less package, fearing that it would drive up costs for those who want the sports channels to a level where those subscribers would flee because of the high prices.
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