Tuesday, January 26, 2016

Random Realignment Conference Network Info

I am not saying I believe any of the below...but FYI...


MHver3 @MHver3 2 minutes ago
FSU Prez tells WVU prez Gee that B10 has been courting several ACC schools from info he has received.
 
MHver3 @MHver3 2 minutes ago
FSU has not been one of the schools B10 has contacted.
 
ACC schools blocked a move by ESPN to make ACCN a shared network with EspnClassic. Revenue was undesirable both short and long term


MHver3 @MHver3 6 minutes ago
ACC end in sight? FSU talking to B12 and SEC again. No ACCN renders GOR invalid? It's about to get interesting.
 
 
 
 
 
 
 
"Clearly, ESPN isn't going to abandon its business model, but that's not the threat here, the threat is that consumers abandon the bundle, which kills ESPN's business model whether they abandon it or not. The scary thing is this: ESPN has nothing to do with whether or not its business model will remain viable in future years, it's going to be entirely dictated by consumer behavior. Namely, how quickly do consumers who aren't watching ESPN stop paying for it?

On the same day ESPN argued that ESPN's future was bright, USA Today released Southeastern Conference revenue figures that include the first full year of the SEC Network. The SEC produced $527.4 million in revenue, a whopping gain that reflects the blockbuster success of the new SEC Network. It's likely that each SEC school will receive in the neighborhood of $36 million a year for TV rights, that's up from just shy of $21 million a year in 2013. As the costs associated with launching the SEC Network decline and the costs the league had to pay to buy back local rights are decline as well, the  SEC Network is poised to become more and more profitable each year.

If, that is, the bundle remains a viable business model.  "


"The SEC's drastically undervalued deal with CBS isn't up until 2023-24, which seems like a long way away right now. Already, CBS has been a tough negotiator with the SEC over the additions of Texas A&M and Missouri. As a point of fact, the SEC gained virtually no economic value from CBS over expansion. The reason to expand from 12 to 14 wasn't about existing television deals. It was, as Outkick has been telling you for five years, was to start the SEC Network.  "


"The SEC's drastically undervalued deal with CBS isn't up until 2023-24, which seems like a long way away right now. Already, CBS has been a tough negotiator with the SEC over the additions of Texas A&M and Missouri. As a point of fact, the SEC gained virtually no economic value from CBS over expansion. The reason to expand from 12 to 14 wasn't about existing television deals. It was, as Outkick has been telling you for five years, was to start the SEC Network.  "


"4. I don't think the ACC Network will happen. 

And if it does happen, I don't think the launch will go very well.

The SEC timed the market perfectly. The ACC Network would enter the market at a time of cord cutting and face a great deal of market resistance, much more akin to what the Pac 12 has found.

If I were in charge of the ACC I'd urge patience in the face of market uncertainty. Do you really want to fight a battle to get your network carried, risk your fans not seeing games, and not produce substantial revenue for taking these risks?"

1 comment:

  1. I believe this part: "ACC schools blocked a move by ESPN to make ACCN a shared network with EspnClassic. Revenue was undesirable both short and long term". I also believe the Big Ten has been in contact with UVa and UNC, but I doubt anything comes of it. As for FSU, I'm sure they keep in touch with the SEC and Big XII, but again, nothing comes of that either IMO.

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