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    Time Warner Can Blame ESPN for Much of That Cord Cutting

    Expensive sports channels are pushing cable bills to levels that make Internet-only subscriptions seem ever-more appealing. After its earnings report, Time Warner seemed to be in a bit of denial over the cable exodus as we discussed yesterday. At least one reason for the rise in cord cutting has to do with cost. As commenter TooDiesel lamented, cable packages don't come cheap. "I think part of the problem is the ridiculously high price of TW cable too.  I live in Charlotte, can't get TW for less than $75 no matter what package I select," he wrote. Well, TooDiesel a lot of that has to do with sports packages driving up those prices, as data offered by AllThingsD's Peter Kafka confirms

    RELATED: No Matter What Time Warner Says, Cord Cutting Is Happening


    Looking at Kafka's chart of 2012 wholesale prices for each channel (below), we see that sports channels rank as the number one and two most expensive offerings, with a smattering of rankings in the top 25, confirming the fears cable execs had expressed back in December as they came to deals with these channels. 

    RELATED: Why the Television Will Be Not Revolutionized


    RELATED: The Fragmented Future of Streaming Television


    ESPN gets that top spot because viewers value sports. Thus ESPN and Disney can charge as much as they like. Cable companies are therefore obliged to carry them—and pass the spending onto consumers—because they're convinced the networks lure customers. Comcast even signed a deal to lock in this relationship with ESPN for the next 10 years. 

    RELATED: Google's Irresistible Potential as an Alternative to Cable


    The people ditching cable for the Internet don't quite agree. Many don't care about sports, or at least don't care enough to pay premium prices to have it in their living rooms. While Comcast has reupped its contract with these expensive networks, other execs didn't sound too excited about these rising prices a few months ago. "What happens to the bundle of cable if you keep pushing [the price] higher and higher," wondered Liberty Media CEO Greg Maffei a month ago. The answer is obvious: Subscribers leave.

    RELATED: Can Netflix Afford a Comeback?


    Image via Shutterstock by B Calkins. 

     

    29 comments

    • Michael Paul  •  San Marcos, California  •  26 days ago
      which is why the cable companies need to offer a la carte pricing packages. I don't need 200 channels! i need a handful only. but I have to pay for all the crap i don't care about while they market all these "choices" I have.
    • Sean  •  Irving, Texas  •  26 days ago
      Time Warner is their own problem. If they would sell Ala Carte, there would be less cord cutting. I would say about 60% of the channels could go away and nobody would care.
    • Keith  •  Overland Park, Kansas  •  26 days ago
      Getting my basic TV via antenna. I just go to my neighbors home to watch Sunday football. In return I share my wireless internet connection with them. We all get what we need at half the price. This stuff is getting too expensive and is requiring creative solutions.
    • NotSure  •  26 days ago
      they can also blame the crappy offerings of other networks. I am cutting the "cord" with my satellite co in July because there is nothing worth watching for over $100 a mo. I have better things to spend a $100/mo. on.
    • Randolph  •  Salem, Oregon  •  25 days ago
      I REALLY want a la carte service. I should be able to subscribe to all the good channels and none others.
    • Jet Fan  •  Tampa, Florida  •  26 days ago
      No more cable for me. Better selection of sports for free online, great reception of all the local channels on HDTV with a decent antenna and $8.00 Netflix to fill the gap. Have Verizon FIOS internet, would consider TV package if ala carte and equipment for 4 TVs was free.
    • ghst  •  26 days ago
      screw cable. the internet has grown to meet all my wants at less than half the cost and in many cases commercial free or only a small amount. and ya who needs soo many worthless channels bundled in anyway???
    • Randolph  •  Salem, Oregon  •  25 days ago
      I dare a marketer to simulate a la carte service and find out just how many channels most people would subscribe to.
    • Jim Z  •  Hartford, Connecticut  •  25 days ago
      Here's what needs to happen... These cable companies need to allow us to purchase ONLY the channels that we want. and allow us to turn OFF the individual channels we DONT want.
    • Syanis  •  Manila, Philippines  •  26 days ago
      I cut my cable package back in 2007 because in Minneapolis the cheapest package I could get was $80 for just cable. I watched maybe 10 channels and not one of the Disney or a sports channel. I also had friends doing the same and now we are all happy using the Internet for our watching demands. Give me a cable package for under $30 again and I may be interested in going back when I'm back stateside but they don't do it and they will just continue to die out.
    • ME  •  Kenosha, Wisconsin  •  25 days ago
      they need to come with a pick and choose package where u can pick up to a certain number of channels for a certain price point
    • jarck  •  25 days ago
      Its time to boot cable in my house.As a matter of fact I dont think I really NEED my cell phone. If I get a check book which I havnt used and buy some stamps I can get rid of this internet.(never mind Im addicted to XBOX)
    • M.E.  •  26 days ago
      Add the cost of each set-top box that's needed to the advertised "special" price and it's not so "special" any more.
    • 06gee35  •  Lenexa, Kansas  •  24 days ago
      The only reason I have cable is for sports, plus if you don't bundle cable with internet they make the internet so expensive it's almost worth spending a little extra for cable. If ESPN created their own cable company where they would broadcast all of their channels and maybe merge with FOX sports so I can still see all my lowly KC Royals games they would make a killing. Charge $10-15 a month I'd do that and just get an antenna for all the local HD channels.
    • Jumbaco!  •  24 days ago
      firstrow.tv

      You can stream any game in any sport. Problem solved
    • Sam  •  25 days ago
      cable is a waste
    • dw0128  •  26 days ago
      I'll usually be the first to bash TWC, especially with their customer service however that's a different rant. ESPN does in fact deserve a lot of the blame. With the astronomical ridiculous prices they pay to get rights to all these games (think SEC football, MBL, NFL, NBA, etc) it's no wonder cable companies like Time Warner have to jack up their rates. ESPN is shafting them right back.
    • Kevin H  •  26 days ago
      It's a big scam by ESPN, as well as the regional sports networks owned by pro sports teams, forcing all cable customers to pay for this programming, even if they don't want it. It's hard to feel bad for TWC though, the way they treat their customers.
    • Joey Bloggs  •  25 days ago
      Never watch BSPN. Tired of Chris Berman's mouth and the guys with bad toupees. Yeah, and the women. I'm sure they were hired for their sports knowledge. Watch Linda Cohn. Only her lips move. Her teeth never separate. Must be why she's single again.
    • Wayne  •  Indianapolis, Indiana  •  26 days ago
      Until Congress passes the law forcing ala carte pricing I will just buy dvds. I do not want to support the Kardashians, big upper frontal extremedied women hunting hogs or any FOX network.
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