ESPN Pays Big for Baseball Rights
Reports indicate that ESPN - the cable channel - has agreed to pay Major League Baseball $296 million a year for the rights to broadcast MLB games in the coming years. Quite a piece of change for the national pastime.
But where, you may ask, is ESPN getting all this money to pay MLB? Why from your wallet is the answer. ESPN has two revenue streams. One is advertisements shown throughout the MLB broacasts and the other is cable and satellite fees. And since cable and satellite fees are passed straight through to cable customers, ESPN can afford to pay whatever it wants for MLB broadcasts because they are spending your money, not their own. Just watch your cable bill rise in the coming months as a result of this new MLB-ESPN contract. For those of you who don't know, ESPN is the most expensive cable channel today. With this new contract, that will obviously remain true.
So next time you open your cable bill and are outraged at the cost, just remember that ESPN and MLB are the main reason your cable bill continues to rise with no end in sight.
9/15/05 ( 148 )
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