Friday, July 8, 2016

Unbundling: ESPN possibly preparing stand-alone service

This is an interesting topic and rarely addressed (because there are so few "ACC media" and the few there are just shill for Swofford).  The ACC is pumping out regular PR that basically is a funny sales job.  Thankfully for Swofford the ACC is made up of fan bases just happy to be in the Power 5. 


Real issues that are always ignored by the ACC:

*Are any ACC talking heads going to be hired like the DOZENS they hired for the SEC?

*Will there be an ACC Gameday show like the SEC gameday show?

*Will this streaming web channel be in bars, airports, etc?  Or just 15 year olds who are dying to watch Wake on their IPhone?

*Is the revenue with 80% of the SEC channel?

*If the "future" methodology is so great, why are ACC ADs still wanting a "linear channel"?

*If ACC schools were added for their great markets like Penn, New York, etc.....how does that benefit the ACC when we aren't tapping into those markets with cable bundling anymore?  Will those TINY fan bases actually be buying an ACC channel?

*How does the ACC make up for such tiny fan bases to make a pay for a web site channel game plan work?

*If it is so great, larger fan bases conferences are just going to follow suit and blow the ACC away with revenue.

*Why does the ACC media keep ignoring REAL revenue questions with weak statements like "ACC will never make as much as the SEC" when that is a strawman argument?  Nobody is claiming it will.  What the issue is.....is what % of revenue will the ACC make?  If it is 80%...fine....if it is 30%......FAIL. 

*Why does the ACC keep using weak arguments, like "exposure" for such a low payout?  Unless "exposure" is latin for SEC is primetime and ACC is on Friday nights and Sat noon....I think the ACC is getting screwed here.


I want to believe this all works out, but the ACC's game plan always seems to be weak PR with silly statements like "The future is here, so the ACC might as well start acting like it" (what does that mean?...just gibberish)...while ignoring real questions and answers.

All the ACC ever seems to have is weak PR one liners that throw in words ("Ninja", "future", "exposure") to keep the zombies from asking real questions.




http://www.wralsportsfan.com/unbundling-espn-possibly-preparing-standalone-service/15837851/

"Every time the subject of the ACC's long-gestating ESPN channel comes up, conference commissioner John Swofford's talking points are essentially the same – the ACC and ESPN will continue to evaluate the industry landscape. But make no mistake, ol' Ninja Swoff is scheming something with the Worldwide Leader.

That something might might be a web-based, stand-alone initiative in lieu of a tradition linear channel.  According to Business Insider, ESPN is planning a direct-to-consumer package of live programming. ESPN's plan wouldn't offer a full programming lineup, excluding games from the NFL and NBA, but would focus on "niche leagues and possibly some types of college sports" instead.
If it turns out Disney, ESPN's parent company, has finally warmed up to the idea of untethering certain live sports properties from the mothership, it's entirely possible the ACC is part of those plans. Swofford hinted as much during the conference's annual spring meetings in May.
“I think [ESPN] will continue to be very aggressive in terms of how they distribute [live sports] events. And that could be very important going forward to have a partner of that nature," Swofford explained to Andrew Carter of the News & Observer. "So with technology and so forth, you want to be with people that are progressive and that have flexibility, that are willing to adapt. And I think that's who our partner is."
According to Bloomberg, Disney agreed to acquire a one-third stake in the video-streaming unit of MLB Advanced Media and a four-year option to buy an additional 33 percent stake in the digital arm of Major League Baseball. The deal highlights the increased importance of video streaming to media companies as viewers eschew traditional television and ties into Swofford's recent comments about the conference's partnership with ESPN.
Despite industry movement towards more streaming, a handful of ACC athletic directors continue to pine for a linear channel. In a recent interview with the Wolfpacker, NC State AD Debbie Yow said she was "bullish" about a network similar to the SEC and Big Ten.
“You need two things: more visibility for everybody, especially the Olympic sports, and more money," Yow said. "With the kind of money that the SEC schools and Big 10 schools are making, it would bode well for us to have an operational, linear network and begin to see what kind of distribution and money we can get for that."
Unfortunately for the ACC, the window for an ESPN network similar to SEC's might have closed as the television industry goes in the direction of skinny bundles.
There's also the matter of demand. SEC markets, where college sports are essentially treated as professional, are thirsty enough for a product that broadcasts third-tier matchups. The ACC loves to discuss their footprint, but it covers too many markets where college sports rank below their professional counterparts.
And let's remember not every conference network comes with a guarantee to print money. The Longhorn Network has become a budgetary albatross for Mickey Mouse. Meanwhile, the PAC-12 has struggled with distribution of their network ever since it launched in 2012.
In order for a traditional cable channel to work, ESPN would have to risk putting high-value matchups, such as a Duke vs. North Carolina basketball game, as exclusives to drum up demand. That's a highly unlikely proposition for obvious reasons. However, the ACC and ESPN could cater to motivated niche fans who would pay to watch sports like baseball and lacrosse through an on-demand service. Growing from there, the ACC could begin offering more basketball and lower tier football.
Bottom line - the landscape appears ripe for the ACC and ESPN to explore a different model.
Consider recent Nielsen research data indicating streaming video subscriptions and digital video players are just as popular as DVRs. High speed broadband access continues to come down in price, leading more consumers to at least consider the option of all-stream household. And take a look at how tech companies, like Twitter, have placed value on streaming sports for their platforms.
The future is here, so the ACC might as well start acting like it."

3 comments:

  1. More info: ESPN wants to launch an a la carte digital network for "niche leagues" and "possibly some types of college sports". http://www.businessinsider.com/espn-readies-a-la-carte-service-2016-7

    The above piece makes it sound like they have no plans for football or basketball on this network - at least at first. Definitely not the network we were expecting. Looks like the big boy sports will remain on ABC/ESPN/ESPN2 for now, while this new thing will be in addition to (not in place of) the existing contract - hopefully Swofford and the boys get at least $3 million PLUS for this - and NO extension!

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    1. I generally agree....especially about no extension. You can't do that.

      $3 Million puts the ACC at WELL south of 50% of SEC revenue.....that is REALLY bad.

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    2. Especially if FSU is forced to go to 9 conference games. That'd be more like a $1M increase. AWFUL. Time to find the exit.

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