ESPN -- given its 16.8% reach of all U.S. TV viewers -- would have to charge $36.30 to consumers per month in an a la carte TV world: one where customer pick and choose the networks they want, estimates MoffettNathanson Research. ESPN currently gets around $6.10 per subscriber per month from pay TV providers.
TNT would need to charge $8.95. It has a 16.8% reach and currently gets $1.50 from pay TV providers. Disney would need about the same $8.25 -- this against a current $1.27 number and a reach of 15.4%. USA would be estimated to get $5.45 versus its $0.92 price, considering its 16.9% reach.
“While we clearly believe ESPN should be the most valuable standalone network, a price above $36 per month would limit even the most die-hard sports fans from signing up,” writes Moffett Nathanson.
“Similarly, we think most householders would be unlikely to pay between $5-$9 per month for USA, Disney Channel or TNT. Why? Well, at a similar price, consumers can buy Netflix which offers all this type of content and more.”