Skinny bundles are the rage. One way to look at this is that 5 new national cable providers have launched in the past 2 years with a starting price under$40 compared to an average cable bill of $103.
Basic package cost by streaming cable provider:
Hulu Live — $40
DirecTV Now — $35
Sling TV — $20
PlayStation Vue — $40
YouTube TV — $35
Fox News has the highest prime time ratings on cable (2.5m) and costs the average cable subscriber $1.55/month. ESPN averages 1.9m in primetime and costs $7.86. The average cable subscriber pays 5X more per month for a channel that they are 30% less likely to watch.
What happens when the cable news channels start asking for highly monthly fees based on their increased ratings?