Web streaming is upending the neat arrangement long enjoyed between TV channels and cable providers such as Verizon and Comcast. Verizon pays ESPN and other channels a certain amount to carry their programming, a cost that gets factored into customers’ monthly bills. But with consumers complaining about paying for too many channels and switching to online streaming alternatives such as Netflix, cable firms are feeling the pressure to cut costs — and even drop channels, especially those with plummeting ratings.
via In cable, it’s survival of the fittest as channels drop from the bundle – The Washington Post.