Because they have always got what they wanted and have always been able to increase the fees they charge. If they haven't then they wouldn't pay the huge increases from contract to contract that they have been doing. If the market wasn't broken, then the ESPN suite of channels would be available the same way the HBO suite of channels are. Then Disney could see if the strategy of overpaying for sports programming would work out. But there is no free market in pay-tv as far as channel choice is concerned. So any argument about how the market is supposed to work is just theory.Here's what I don't get though... why does everyone assume Disney/ESPN would automatically get whatever increase they "pass down the line"? THEIR customers (cable/satcos & advertisers) have to be willing to pay more money. If their customers don't pay, ESPN loses money. Isn't that how the market is supposed to work? A company makes a product (and spends money making that product). They sell that product at a certain cost. If the cost is "right", people buy it. If it isn't, they don't.