To clarify that chart: the "reach" number is the proprietary percentage the
research firm came up as opposed to penetration. My interpretation of that
is that they somehow crunched research and ratings to calculate it.

On Fri, Jan 29, 2016 at 5:08 PM Tom Wolper <[email protected]> wrote:

> On Fri, Jan 29, 2016 at 5:49 PM, Joe Hass <[email protected]> wrote:
>
>> Here's the bonus level though when it comes to ESPN (and all the
>> non-specific sports channels, for that matter): they're all, essentially,
>> bundles themselves. ESPN carries a laundry list of sports. It's one thing
>> to say "Would you pay $36 for ESPN?", but it's quite another to say "Would
>> you pay $36 for ESPN knowing you'll only watch MLB and NBA games (for
>> example)?" I'm quite fortunate that I'm primarily an NHL, F1, and EPL fan,
>> so it'd be a no-brainer for a hypothetical NBCSN a la carte, but if those
>> three sports were on ESPN, would I be willing to plunk down $36 for that?
>> <[email protected]>
>>
>
> I haven't talked to bar owners about how much they pay for their cable
> subscriptions, but sports channels are a premium for them as they bring in
> business. I wonder, in an a la carte world, if ESPN et al would raise their
> rates to keep home subscribers under $36.
>
> I will note that the prices in the article come from multiplying the rate
> cable channels charge to carriers with the channels' reach. If there is to
> be an a la carte model, which I doubt will happen, the channels will have
> to find a sustainable price in the market and that might be very different
> than what was calculated in the article.
>
> According to a quick Google search, the average cable bill in 2015 was
> just under $125/month. The publicized studies tell us that the average
> family watches just 17 channels. So if we ask how much a family will pay
> per month for 17 a la carte channels, we already have our answer.
>

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