How else should Directv account for the different regional costs that the rsns incur?
I'm dubious of how closely the fee being charged by DirecTV tracks with the actual cost of the RSN.
Take Atlanta: You get FOX Sports South and the SEC Network. The regional sports fee is $5.83, and you need to subscribe to Choice($78.99) or higher to have those channels be explicitly part of your programming package.
Per
The Numbers - SEC network accounts for $0.74/mo. So that leaves $5 and change to cover FOX Sports South.
Yet if I sign up for Sling Blue ($25), DirecTV NOW "Live a Little" ($35), Playstation Vue Core ($44.99), FuboTV ($34.99), Hulu Live ($39.99), or Youtube TV ($35) I get those channels included with no additional fees.
Even if you completely ignore the difference in equipment fee costs ($0 for streaming vs $$$$ for cable/sat), the base programming packages for the streaming services are on average less than half the cost of the minimum package to get the local RSN
AND they don't charge any additional RSN fees. Escalator contracts explains part of that (ie, first 100k subs are $0.10/mo, 100-250k are $0.25/mo, 250-500k are $0.50/mo) and starts to explain why services like Vue are having to dump channels as they're able to grow their subscriber counts.
Still .. I don't buy that my local FOX sports station costs nearly half of what ESPN monthly programming fees are. Just look at the contracts that ESPN has racked up:
ESPN Spends More on Content Than Anyone Else, Including Netflix -- The Motley Fool
FOX Sports is covering Atlanta Braves and Atlanta Hawks regular season games, and broadcasts some of the FS Tennessee and FS Carolina Predators and Hurricanes games since the Thrashers NHL franchise was relocated. So FSSouth is directly producing content for 2 major sports leagues (with paid exclusivity contracts), no playoffs, and likely has a fraction of the on-air talent costs when compared to ESPN -- and yet I'm supposed to believe it still costs $5/mo
in addition to a more expensive base programming package?