Bidding war between networks, sports leagues will increase price of cable TV

Time Warner Cable, Cablevision and scores of rural cable providers are tacking on sports surcharges each month, the direct result of higher fees they are paying to ESPN and other sports networks to carry their channels.

Beginning Feb 5, DirecTV will raise fees by 5.7 percent. The rise in cable prices is likely to test the patience of customers, who may already be tempted to cut their cords in exchange for streaming options that will soon be available to them. The catalyst for the price increases is a slew of dealmaking between ESPN and the biggest professional sports leagues. Based on a recent deal, ESPN is estimated to pay $1.9 billion each year just for National Football League games. ESPN and TNT have signed a new $2.6 billion annual contract to carry National Basketball Association games. Analysts say these costs will get passed on to customers -- slowly and steadily over the next decade.