It’s a new year and time for a thorough financial review. Around our house, that means it’s time to make a closer review of our spending habits and see where we need to make a few adjustments.
If you’ve made a trip to the grocery store in recent weeks, you understand that the food inflation problem has not eased.
Yesterday, I paid $95 at our local grocery store for what used to be my $80 grocery list. That’s nearly 19% higher!
Then, the mail arrived yesterday with the latest bill from our cable television/internet provider.
Beginning this month, they plan to charge an extra $30 per month for the privilege of providing television services which include about 95% more channels that we actually watch and desire to pay for.
This morning, I read that the US government has reached its debt limit again (now at $31.4 trillion). Since the House and Senate remind me of the Keystone Kops of the finance world, I predict that your hard-working Congress and Executive Office will:
* Blame the other political party non-stop for weeks or months
* Threaten to shut down the federal government (well, at least some of it) to prove a point
* Do very little or nothing at all to reduce spending
* End-up kicking the can down the road for another year.
* Provide back pay for those who were temporarily furloughed as they return to their non-essential (?) jobs
Unlike Congress, our budget must balance or we’ll learn a new word – bankruptcy.
Our household will, indeed, achieve its goal to reduce spending and cut back on things which we really don’t need in 2023.
Since my wife won’t agree to a significant trimming of our grocery bill, that new cable and internet bill seemed like a great place to start.
When you examine your television bill, have you ever wondered why the provider charges you so much money?
I did, and I’m going to share a little information with you.
As a sports fan, it is most appropriate to start with the cost of the most popular sports channel.
ESPN is part of the Walt Disney Company (DIS). The self-proclaimed worldwide leader in sports depends heavily on our monthly contributions.
Depending on your cable television package, you may be paying as much as $16 per month for ESPN, ESPN2, SEC Network, and an assortment of other Disney-related channels including your local ABC affiliate (which you could watch for free using an antenna – more on that later).
For just ESPN, it costs more than $8 per month alone. Good luck trying to buy it as a stand-alone entity, though.
ESPN has invested a lot of money in long-term sports contracts granting the company rights to cover college football, the NFL, NBA, Major League Baseball, and other significant sporting events.
In addition to those very significant fixed costs for broadcast rights, ESPN must pay for its on-air talent and a very large team of talented professionals to operate some very expensive broadcasting equipment in order to bring us sporting events during the year.
In addition to the $8 monthly fees, those seemingly endless commercial breaks during ESPN’s coverage of major sporting events helps to generate additional revenue to offset its costs.
By the way, ESPN2 costs you about $1.05 per month, SEC Network is about $1 per month, and the assorted other ESPN and Disney-related channels cost anywhere from $.80 per month down to about $.20.
Disney attempts to bundle as many of their family of programming channels as possible. Though most sports fans simply want ESPN (and, perhaps, ESPN2), the parent company is reluctant to provide ESPN without forcing cable television providers and others to carry as many of the other channels as possible.
According to Disney’s most recent (2021)