Ask HN: Why doesn't ESPN ditch cable?

2 pointsryanklee1 comment

What keeps ESPN and the like from offering live coverage via subscription-based internet streaming?

I hear it over and over again from cable subscribers that sport channels are the only thing stopping them from ditching cable.

Who's holding the cards here? Would there be any economic advantage for ESPN et al. to making the switch? Is the change probable, or are there too many incentives in maintaining the status quo?

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As with HBO, ESPN makes a fortune from the subscription fees paid by cable providers. There are far more people who have cable/satellite than have the ability to stream to their televisions. As such, they get more eyeballs -- allowing them to charge more for advertising. This war chest begets more broadcast rights deals with the major sports league which further cements their market leading position. Their analysis indicates that they would be unable to replace revenue in a purely streaming subscription model so they will be with cable until it can.

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