Expensive cable contracts are causing people to cut the cord in droves. With an overabundance of useless channels and a multitude of viewing options on steaming services such as Netflix and Hulu, cable companies have been taking a huge hit each passing year. This has caused many cable networks to scramble for other solutions in order to survive. One person pointing the finger at expensive cable contracts is Discovery Communications CEO, David Zaslav.
At the recent Bernstein Investor Conference, Zaslav suggested a tiny bundle be offered by cable and streaming companies that costs around $8 to $10. The catch for such a cheap deal? No sports.
It’s widely known that ESPN and its sister channels are the number one reason for high cable bills. There’s no denying the rabid fan base that sports creates. However, those who do not wish to partake in such festivities are left to suffer with a costly monthly fee.
Networks like A&E, AMC, and Viacom (MTV, Comedy Central, VH1, etc.) all agree with Zaslav’s notion. They believe the $10 price point is the best way to counter Netflix’s cheap ticket price that lures the non-sports fanatics who are cutting the cord.
This idea is still in its early stages, and would most likely only cover cable properties. Channels like FOX, CBS, and Disney (who owns ABC and ESPN) all air sports and carry hefty price tags for cable providers. So, collaborating with this $10 venture may not be in their best interests. This suggestion will also not be much of a success if it’s not picked up streaming services such as Hulu, DIRECTV NOW, and Sling TV.
However, the ground work seems to be down, and we will be keeping an eye on the story as it unfolds.
Would you be willing to pay $10 for cable television, minus the sports? Comment below.