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Home / Sports / Cable TV Morphs into Sports Aggregation Service as Streaming Rises

Cable TV Morphs into Sports Aggregation Service as Streaming Rises

31 Jul

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Summary

ESPN to launch direct-to-consumer service, allowing sports without cable
Pay TV losses slowing, as cable bundles offer access to streaming apps
Future of cable TV may be in skinny sports bundles, not general entertainment

Cable TV Morphs into Sports Aggregation Service as Streaming Rises

According to the article, the future of cable TV is shifting towards becoming a primary aggregation service for live sports. This change is driven by two key factors:

Firstly, ESPN is set to launch its direct-to-consumer streaming service in the coming weeks, which will allow Americans to access major sports without needing a cable subscription for the first time. This disrupts the traditional pay TV model that has relied on live sports as the main value proposition for consumers.

Secondly, the article suggests that pay TV losses may be starting to plateau. Cable providers like Charter and Comcast have seen a significant slowdown in video customer losses, with Charter reporting a five-fold improvement in the last year. This is partly attributed to cable companies bundling access to popular streaming services like Disney+, Hulu, and HBO Max, making it less appealing for customers to cut the cord.

As a result, the future of cable TV may evolve into a "next-generation aggregation service for sports." Cable companies are exploring "skinny bundles" focused on live sports, rather than general entertainment programming. This shift is driven by the continued value of sports content, as broadcast networks can continue to charge high fees to pay TV operators for premium live events.

The article suggests that the battle for sports viewership may come down to a competition between cable companies, YouTube TV, and ESPN's direct-to-consumer app, as they vie to become the go-to destination for accessing all major sports.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.