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.

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Posted by WikiTiger

Member since Sep 2007

41055 posts

Posted on 10/26/11 at 3:23 pm to StrickAggie06

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.

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Posted by teke184

Zachary, LA

Member since Jan 2007

96540 posts

Posted on 10/26/11 at 3:24 pm to StrickAggie06

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.

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