Newsbreak: ESPN goes dark for Spectrum cable subscribers amid Disney-Charter Communications dispute

Article published: 18 September, 2023

IB Economics syllyabus: Microeconomics (market power, supply and demand)

ESPN, a major sports network, went dark for Spectrum cable subscribers due to an ongoing dispute between Charter Communications and Disney. This blackout affected several Disney-owned channels, but it was particularly noticeable to college football fans. Both Spectrum and Disney released statements, with each side presenting their perspective on the dispute. The core of the disagreement revolves around pricing, with Disney allegedly demanding an excessive increase and trying to limit Spectrum’s ability to offer varied programming packages.

IB Economics Internal Assessment (IA) Commentary

The ESPN blackout article touches on microeconomic concepts like market power, price discrimination, and consumer choice. You could use a supply and demand diagram, to show the effects of such disputes, showing how interruptions in channel availability can influence viewer demand. This analysis can show the changes in consumer and producer surplus, the possibility of deadweight loss, and the dynamics of monopolistic behavior in the market. The article also highlights the implications for consumers, from restricted content access to potential price fluctuations, while emphasizing the negotiation challenges faced by cable providers, such as Spectrum, with major content producers like Disney.

Source of image: By Richard Deitsch and The Athletic Staff

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