• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Sports

The SportsCenter rebellion

By
Scott Woolley
Scott Woolley
Down Arrow Button Icon
By
Scott Woolley
Scott Woolley
Down Arrow Button Icon
September 12, 2011, 9:53 AM ET

ESPN’s deal to pay $15 billion for Monday Night Football could incite a revolt against the cable industry’s basic business model.

The idea that American television viewers should be free to buy just the TV channels they want has always proven a pipe dream. It’s a silly idea, cable and satellite operators have convinced politicians and regulators: selling channels in packages funds a wider variety of programming, actually leaving consumers better off.

Regardless of the merits of that argument­ — whether cable industry pricing does more to benefit cable companies’ customers or their shareholders — it hasn’t mattered as a practical matter. Over the past decade, cable companies have always gotten their way in Washington, easily batting down laws and regulations aimed at forcing them to sell TV channels a la carte. But while the pricing system of the cable business has proven impervious to government attack, it’s starting to show signs of weakening from within. As more and more cable channels pile higher and higher fees on subscribers, the foundation of the industry’s hefty profits may fracture.

The critical question: How high can ESPN and other networks raise their “subscriber fees” before it makes sense for one major cable or satellite company to tell them to go jump in a lake? Right now ESPN charges Comcast (CMCSK), DirectTV (DTV) and their competitors about $55 per subscriber per year to carry the main ESPN channels. But the sports network, which is owned by Disney (DIS), just signed a huge new deal to carry Monday Night Football through 2021 at a staggering cost of $15 billion. There’s no question ESPN is going to use that cost to justify further hikes in its subscriber fees.

The incentive to tell ESPN to shove off may already have arrived, as the reliably blunt chief executive of Dish Network (DISH), Charlie Ergen, mused in an earnings call earlier this year: “I guess strategically, I would say it this way, if you got 3 competitors and they all have the sports programming and only 15% of the people actually watch the sports programming…to not carry sports programming would have a great strategic advantage for certain customers.”

To the cable industry, that’s heresy. The notion that dropping unwatched channels would be an advantage for customers is precisely the idea that the industry has fought for years. (According to studies the cable lobby cites, allowing subscribers to by channels individually would result in both less choice and higher prices.)

There would be obvious disruptions as angry sports lovers left a distributor who gave up sports channels, Ergen admits. Presumably sports lovers would drop the cable or satellite system quickly, while it would take longer for the non sports-lovers to realize they can save money by moving to the sports-less competitor. Says Ergen: “I think there might be some short short-term pain, but they probably do pretty well long-term.”

In the earnings call Ergen was careful to keep his discussion hypothetical, and a Dish Network spokesman is quick to emphasize that the company is not planning to drop sports from its lineup.

Dish is currently in a longterm contract with ESPN. The company won’t say exactly what it pays in subscriber fees, or when the deal expires.  When the contract does come up for renewal if Dish was to refuse to pay fees for its 14 million subscribers and drop ESPN, the company would save roughly $750 million a year.

About the Author
By Scott Woolley
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

U.S. says China to buy $17 billion of agricultural goods annually
EconomyChina
U.S. says China to buy $17 billion of agricultural goods annually
By Yash Roy and BloombergMay 17, 2026
42 minutes ago
Taiwan’s president says the U.S. arms sales that Trump called a bargaining chip with China are ‘the most important deterrent’ of regional conflict
AsiaChina
Taiwan’s president says the U.S. arms sales that Trump called a bargaining chip with China are ‘the most important deterrent’ of regional conflict
By The Associated PressMay 17, 2026
52 minutes ago
WHO declares latest Ebola outbreak a global health emergency. A rare variant of the disease with no approved treatments is to blame
HealthHealth
WHO declares latest Ebola outbreak a global health emergency. A rare variant of the disease with no approved treatments is to blame
By Chinedu Asadu and The Associated PressMay 17, 2026
1 hour ago
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
EconomyDebt
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
By Jason MaMay 17, 2026
2 hours ago
BlackRock private credit fund’s valuations are probed by DOJ
InvestingDepartment of Justice
BlackRock private credit fund’s valuations are probed by DOJ
By Olivia Fishlow, Ava Benny-Morrison and BloombergMay 17, 2026
4 hours ago
Ukraine brings the war to Moscow with one its largest drone attacks on the capital, adding to the ‘darkening cloud of anxiety over Russia’
EuropeRussia
Ukraine brings the war to Moscow with one its largest drone attacks on the capital, adding to the ‘darkening cloud of anxiety over Russia’
By Samya Kullab and The Associated PressMay 17, 2026
4 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
1 day ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
21 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
5 days ago
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
Innovation
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
By Jason MaMay 16, 2026
1 day ago
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
Energy
Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying, analysts warn
By Jason MaMay 16, 2026
24 hours ago
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
Future of Work
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
By Jake AngeloMay 16, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.