Every few months a burst of reports surfaces that television as we know it is changing. Yet, after the dust settles, it's all just talk and cable companies reign supreme.
In the video below, Fool analysts Eric Bleeker, Jamal Carnette, and Simon Erickson look at the business of television. Recent reports have Apple negotiating directly with a host of cable companies including ESPN. As consumers have increasing streaming options like Netflix and cord cutting is an idea attracting broad attention, sports has become a content kingmaker. As an example, ESPN collects more than $5 per subscriber each month while the next closest cable channel commands roughly $1.35 per subscriber each month.
From that perspective, ESPN could dictate the future of television. However, they could also be using companies like Apple as leverage to get better terms against cable operators like Comcast and Time Warner. To see a discussion on how sports could eventually dictate the future of television, watch the video below.
Eric Bleeker, CFA has no position in any stocks mentioned. Jamal Carnette owns shares of Apple. Simon Erickson owns shares of Apple. The Motley Fool recommends Apple and Walt Disney. The Motley Fool owns shares of Apple and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.