[bmh_ca]

ESPN is paid by cable subscriber, regardless of whether they watch sports.

Most people (>50% iirc) don't watch sports, but because of the arrangement described above most cable subscribers end up subsidizing it.

As a result: Selling sports directly to people who watch it dramatically undercuts their business model.

[coldcode]

ESPN's contracts forbid it to sell to anyone other than a Cable system. Otherwise it would be selling direct like Netflix. This is the terrible deal that major sports networks forced on it (and it took on anyway). Some day all that massive money will vanish and sports leagues will be gasping for income.

[protomyth]

> ESPN's contracts forbid it to sell to anyone other than a Cable system.

In Major League Baseball's case, they reserve that right for themselves. Of course, every baseball team also has its own local contract or network.

I get the feeling that ESPN is a middleman that is increasingly being seen as not adding enough value for the price by its subscribers.