Technology is creating an alternative to cable and satellite TV subscriptions. You still have to pay a subscription for your broadband (THAT is where the real money is) and whatever content you are willing pay to stream (Netflix, Amazon, etc.)
So the revenue is shifting to Broadband providers (Cox, Comcast, etc.) and content providers that stream.
What ESPN (and others) need to do is figure out how to provide their live content to anyone that wants it and make money. I live in BFE - and CANNOT get the ESPN3 streaming content from my cable provider because they are not on the list of "big guy" providers. What a stupid model ESPN uses - screwing over everyone that is not on a big cable or satellite company. One of the reasons I hate ESPN.
Right now they are using live sports as a way to keep cable/satellite subscribers on the hook (or expand subscribers - NBCSN is using NASCAR to do just that). I did go the package route when they upgraded our house to FTTH - I get phone, fiber optic internet and digital cable for about $100 a month. And I use Tracfon for my cell - which I spend about $100 a year on (a bit less for the wife). I get all the ESPNs, Fox Sports, Comcast sports out of Chicago and NBCSN - which I really wanted since I like to watch NASCAR.
The minute I could get live sports (primary Nebraska games and NASCAR) via streaming I would cut the cord on cable - even if I had to pay a bit to get it.