The Sports Bubble

Are we getting to the point where the economics of sports cable programming is no longer sustainable? That is, the high salaries of professional athletes combined with the ever-high fees from leagues flow through to the consumer, and, at some point, significant numbers of customers may cut the video cord (in this scenario, the remaining subscribers would have to pay more).

Jim Beattie of Bevcomm, who moderated a panel at the Minnesota Telecom Association’s 2013 Annual Convention on the topic of accessing video programming, likens the business of sports programming distribution to the housing bubble.

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