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LHN Struggling. Surprise, Surprise, Surprise.

Posted on 10/26/11 at 1:35 pm
Posted by kilo
Member since Oct 2011
27429 posts
Posted on 10/26/11 at 1:35 pm
UT is not long for the Big 12 if that network fails. I am so glad we got out of the UT petri dish that is the Big 12-2-1+1-1+1

LHN Must See TV
Posted by fontell
Montgomery
Member since Sep 2006
4449 posts
Posted on 10/26/11 at 1:57 pm to
Joe Namath doesn't care if you're team is strugg-a-ling...
Posted by JPLSU1981
Baton Rouge
Member since Oct 2005
26275 posts
Posted on 10/26/11 at 2:18 pm to
I think the LHN will eventually survive, but IMO they overestimated the national appeal of the network.

outside Texas, no one really wants it and it's going to be a tough sell getting carriers outside of texas to pick it up.
Posted by TbirdSpur2010
ALAMO CITY
Member since Dec 2010
134026 posts
Posted on 10/26/11 at 2:23 pm to
Hell, not that many people really want it IN Texas. They absolutely overestimated the network's appeal--shoot, even as an Aggie, I wouldn't pony up the cash if there were a Texas A&M network. Just not enough appealing content to justify paying for that channel, IMO.
Posted by c on z
Zamunda
Member since Mar 2009
127424 posts
Posted on 10/26/11 at 2:23 pm to
I had a feeling it wasn't gonna be all that it was cracked up to be.
Posted by KJA
Dallas
Member since Apr 2011
258 posts
Posted on 10/26/11 at 2:31 pm to
It's just such a horrible idea based on the simple fact that not even everyone in Texas is a UT fan, much less outside of Texas.
Posted by Big Kat
Member since Feb 2009
5910 posts
Posted on 10/26/11 at 2:36 pm to
Idk wtf ESPN was thinking.

Besides I think the future is Conference Networks and individual school broadcasting web content.

12th Man TV and AggieAthletics.com do a great job
Posted by adono
River Ridge
Member since Sep 2003
7307 posts
Posted on 10/26/11 at 2:52 pm to
quote:

I think the LHN will eventually survive,


I don't agree. As that article pointed out, the negative back-wash related to the conference in-fighting and the almost robber baron attitude of both ESPN and UT has tainted this thing beyond repair.

Most any other network would have ditched this idea a long time ago when the shite started hitting the fan; ESPN hasn't done it because of their "we will not admit defeat" persona. Eventually, the LHN will fade off into sunset only to be a memory...just like their once dominance in college football!
Posted by WikiTiger
Member since Sep 2007
41055 posts
Posted on 10/26/11 at 2:54 pm to
Part of the problem that the LHN is going to face is that the cable network business model is going to fail in the next 5 to 10 years.

Internet delivery of a-la-carte networks is the future.

If you know anything about the way cable networks offer their channels to cable companies, then you'll know how it can't survive. Here's a post I made months ago on the LHN's business model:

~~~~~~~~~~~~~~~~~~~~

Well, with the business model that cable networks and cable providers have set up, the number of viewers doesn't matter all that much, at least not to the point of it being the primary issue.

The LHN's primary goal right now is to get on as many cable providers as possible. They would then get x amount of dollars per subscriber for that company.

For instance, if Cox Cable in the NOLA area picks up the LHN, and say Cox has 500,000 subscribers in that area (I have no idea how many they actually have), and say the LHN charges $0.75 per month per subscriber, then the LHN would get $375,000 every month, from just that one cable company. Extrapolate that to many companies all over Texas, Louisiana, Arkansas, etc... and you have big bucks coming in, and that's not even counting advertising revenue.

FWIW, I don't know what the LHN per subscriber fee is going to be.

But this gives you an idea of how the network can be feasible.


Also, this demonstrates how shitty the cable TV business model is for the consumer.

But the good news is that its a dying model due to the internet and other delivery methods, and the real question is whether or not the LHN can survive in an "a la carte" type environment.

ETA: Obviously, if the cable company puts it in a "sports tier" then only subscribers to that "sports tier" would count towards the number of subscribers that pay the fee.

Found this chart from 2009 that details the subscriber fees for many networks. If you have cable and you get any of these channels, then you are paying these fees every month whether you watch them or not:



~~~~~~~~~~~~~~~~~~~~~~


But like I said, that model is unsustainable. Technology is changing that, and rapidly.

One of the reasons people may not be yelling and screaming to their cable provider about getting the LHN is that they can probably easily do a google search for "college football games live streaming" and find a site that has a pirated stream available.

They will need to adjust to an internet model, and they will find when they do that it ain't worth 300 million.
Posted by TbirdSpur2010
ALAMO CITY
Member since Dec 2010
134026 posts
Posted on 10/26/11 at 3:00 pm to
quote:

One of the reasons people may not be yelling and screaming to their cable provider about getting the LHN is that they can probably easily do a google search for "college football games live streaming" and find a site that has a pirated stream available.


Bingo
Posted by adono
River Ridge
Member since Sep 2003
7307 posts
Posted on 10/26/11 at 3:04 pm to
quote:

Here's a post I made months ago on the LHN's business model:



Very interesting take on the possible shift in media consumption. I'm not 100% on board with the thought that cable will go to a full "a la carte" system, but major changes will certainly take place.

The guy who makes the best hot dogs only has so much leverage over Wal Mart for so long; Wal Mart will eventually find a supplier as good and cheaper. Cable operators are the "Wal Marts" of modern media distribution to consumers!
This post was edited on 10/26/11 at 3:05 pm
Posted by WikiTiger
Member since Sep 2007
41055 posts
Posted on 10/26/11 at 3:07 pm to
quote:

I'm not 100% on board with the thought that cable will go to a full "a la carte" system


they certainly aren't going to go willingly.

i imagine they will fight the disruptive technologies just like the music and movie industries fought digital delivery.

but they will eventually lose. maybe my 5 to 10 year estimate is too optimistic, but I don't think so. cable is losing subscribers left and right. they will have to do something, and soon.
Posted by StrickAggie06
College Station
Member since Sep 2011
597 posts
Posted on 10/26/11 at 3:15 pm to
This is basically spot on. The biggest reason the LHN will fail is because ESPN believed it could leverage cable companies to add it at $0.40/customer to standard or expanded basic cable packages, forcing the majority of cable consumers to pay for the channel. This is why they agreed to pay Texas so much for the rights.

The problem with that is the demand didn't even come close to supporting that model, and a lot of non-Texas fans have been calling carriers threatening to switch to a another cable provider if forced to pay for the channel.

Because ESPN drastically overpaid Texas and guaranteed the payments, it isn't fiscally viable for ESPN to allow LHN to be offered a-la-carte or included in a sports tier. Furthermore, demand from the Texas fanbase itself isn't enough to warrant this option, regardless of price or financial obligations to Texas.

I will be highly surprised if LHN doesn't fail, and fail epically. Even if they are able to acquire rights to air more football games on it, I'm still not sure cable providers will agree to force it on consumers for fear of blowback from a large contingent of non-Texas fans.
Posted by WikiTiger
Member since Sep 2007
41055 posts
Posted on 10/26/11 at 3:23 pm to
quote:

$0.40/customer to standard or expanded basic cable packages




that's insane.

many people aren't even sports fan. for those people, paying for ESPN and ESPN2 in the basic package is annoying enough.


or even worse, can you imagine being an Aggie fan in Texas and getting a notice from your cable company that they are raising rates (yet again) and, oh yeah, now they offer the Longhorn Network, and it's not even in a sports tier....it's in the basic package and you have to pay for it if you just simply want cable.









Honestly, StrickAggie06, I'm shocked to hear that they really believed it would have enough value to belong on the basic package. It just seems like a perfect fit for a sports tier.

Posted by teke184
Zachary, LA
Member since Jan 2007
95914 posts
Posted on 10/26/11 at 3:24 pm to
quote:

This is basically spot on. The biggest reason the LHN will fail is because ESPN believed it could leverage cable companies to add it at $0.40/customer to standard or expanded basic cable packages, forcing the majority of cable consumers to pay for the channel. This is why they agreed to pay Texas so much for the rights.

The problem with that is the demand didn't even come close to supporting that model, and a lot of non-Texas fans have been calling carriers threatening to switch to a another cable provider if forced to pay for the channel.


And I'd threaten to do so, too, because cable fees are expensive enough as-is without paying for a ton of sports channels few people want.

People can see paying for ESPN 1 because it shows Monday Night Football and a variety of sports. Same with ESPN 2.

ESPN U, the Longhorn Network, and ESPN 8 - "The Ocho", though? Not so much.
Posted by StrickAggie06
College Station
Member since Sep 2011
597 posts
Posted on 10/26/11 at 3:46 pm to
quote:

or even worse, can you imagine being an Aggie fan in Texas and getting a notice from your cable company that they are raising rates (yet again) and, oh yeah, now they offer the Longhorn Network, and it's not even in a sports tier....it's in the basic package and you have to pay for it


Exactly. From what I have seen, tons of Texas A&M and Texas Tech fans in particular have been burning up the phones of cable companies threatening to drop them if they add LHN as part of their package. I know I'll be pissed if DirectTV forces me to pay for it. I sure as hell don't want to pay for that trash.

Posted by adono
River Ridge
Member since Sep 2003
7307 posts
Posted on 10/26/11 at 3:58 pm to
quote:

but they will eventually lose. maybe my 5 to 10 year estimate is too optimistic, but I don't think so. cable is losing subscribers left and right. they will have to do something, and soon.


It's hard to argue against the evolutionary history of media!

I know I've dropped HBO and haven't missed it one bit. I can go online and get newer movies and find any original program they show!
Posted by Chicken
Jackassistan
Member since Aug 2003
22029 posts
Posted on 10/26/11 at 4:06 pm to
quote:

they can probably easily do a google search for "college football games live streaming" and find a site that has a pirated stream available.
I am guessing a very small % of the population does this...
Posted by WikiTiger
Member since Sep 2007
41055 posts
Posted on 10/26/11 at 4:17 pm to
quote:

I am guessing a very small % of the population does this...


large enough for the media corporations to lobby Obama to make a huge issue of it and go on a crackdown back in January.


ironically, the games are easier to find this season than they were last season
This post was edited on 10/26/11 at 4:18 pm
Posted by Carlos Santannaclaus
Houston
Member since Jan 2008
3271 posts
Posted on 10/26/11 at 4:38 pm to
quote:

I had a feeling it wasn't gonna be all that it was cracked up to be.



Sorry, but 24/7/365 about one school is absurd.
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