ESPN's new streaming service is a ripoff—and that's the point  | PCWorld


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ESPN's new streaming service is a ripoff—and that's the point
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The economics of bundling and fixed costs play a significant role in the pricing of streaming services. When individual channels are offered as separate streaming options, each would need to be priced at a minimum of $10 to cover customer support costs and ensure financial viability.

This structure provides users with choices; for instance, those who only want ESPN for Monday Night Football can subscribe for those specific months, allowing for more flexibility compared to traditional cable bundles.

While some critics may view this strategy as corporate greed, it's important to understand that maintaining operational costs for each standalone service is a considerable undertaking.

Fox is very clear about its pricing strategy. They want to avoid losing any TV subscribers to their direct service, which is aimed at cord nevers.
In his May update, he added that the pricing “will be healthy,” adding, “It will not be a discounted price.” The streamer is aimed “at the cordless community,” with Murdoch noting, “We don’t want to lose a traditional cable subscriber to Fox One.”