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02-26-2013, 09:34 AM
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Join Date: Jun 2010
Location: Philadelphia
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Originally Posted by knorthern knight View Post
The problem is "horizontal integration". Disney owns Disney Channel, ESPN, and ABC. Let's say you're Time-Warner or Comcast or even a small regional cable system. Disney only offers a package deal. You have two choices...
  1. You take ABC and ESPN on your standard tier (including a subscription fee for every subscriber on basic cable, and Disney channel on a premium tier.
  2. Or you get zip (no ABC), zilch (no ESPN), nada (no Disney Channel).
Disney has the cablecos are over a barrel.
Disagree, while that may be the case in the short-term, Comcast at least has much deeper pockets than Disney. (Comcast almost acquired Disney previous to buying NBCU). Eventually it will get to the point, where they'll just outbid ESPN for the content they want to show (NFL, MLB, etc.) because it will cost them less than getting raked by their subscriber fees.

This is no different than any other business chain where a middle man gets too greedy and eventually those above and below him cut him out of the game. If Comcast can pump up NBCSN to be a viable alternative to ESPN's original programming (Sportscenter, talk shows and not much else) this might happen sooner than you think provided they can get more premium content.

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