How Cable Lost the Remote

[Commentary] ESPN’s recent decision to sue Verizon over cable-package placement is one indication that change is afoot. With a local monopoly, cable operators dictate packages and pricing, markets be damned. Satellite rarely competes on price. Cable bills have grown at almost triple the rate of inflation over the past two decades, according to the Federal Communications Commission. But in April, Verizon announced Custom TV, which offers a few basic channels and additional channel packs: Kids, Pop Culture, Lifestyle, Entertainment, News & Info, Sports Plus and Sports. The Discovery Channel is no longer basic cable. Neither is ESPN. Uh oh. How did the unraveling happen?

[Kessler is a former hedge-fund manager]