Tuesday, July 28, 2015

Is ESPN Becoming a Premium Channel?



Founded in 1979, ESPN has provided 24 hour sports of global news to its viewers.  There is no denying that ESPN controls the sports news market.  With demand for sports increasing with the upcoming college and NFL football seasons, rumors are floating around ESPN has a plan to unbundle with the cable packages and be offered as a separate premium channel like HBO. 

Ranked as one of the top reasons consumers renew cable services, ESPN is the primary non-premium channel in demand.  On average consumers only pay around $6 for about 10+ ESPN affiliated channels, so it is reasonable to think that ESPN, an ABC- Disney owned channel, would want more pieces of the pie. It all boils down to money, and who gets the most of it.  

Representatives for ESPN spoke about the idea, and the only information that was given focused on a plan in 5 years to test the waters on the idea but no serious plans other than that.  Being a business and broadcasting double major, I know that with an opportunity like that out there, we should prepare our wallets to start paying for service of sports news from ESPN.

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