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TV markets don't matter

Posted on 9/27/11 at 9:00 pm
Posted by Tigershatebama
New Orleans
Member since Feb 2006
263 posts
Posted on 9/27/11 at 9:00 pm
I really wish that discussions about teams like Missouri and NC state would end. They WILL NOT bring more money to the SEC. The reason CBS and ESPN have huge deals with the SEC are because of the large number of marquee matchups that occur each year.

The only way the SEC expands is if it brings more money to 12(13) schools already in the conference.

Tex AM has been a school that has shown that its on the cusp of being a dominate team. The SEC is gambling that in a conference without Texas, Texas AM will become a superpower that will draw in viewers from around the country to watch them play in big games. It's a gamble.

However, Missouri(and the St Louis market blah blah blah) isn't a team that is ever expected to be a dominate force in CFB. Everyone keeps talking about the St Louis TV viewers. So what? They'll tune in to watch Missouri get torn to pieces by the SEC powerhouses while the rest of the country watches CSI. CBS will pay more for the rights to broadcast SEC games, but you are kidding yourself if you think it will be enough to give Missouri it's share AND have some left over for the rest of the SEC. This doesn't bring any extra money to the other schools. Whatever market (revenue) they would bring to the table, just gets sent right back to them.

The only way an increase in the number of SEC schools is acceptable, is if the team brings along with it a strong fan base that watches every game even when playing Vandy. BUT it must also bring in more NATIONAL viewers whenever there is a marquee matchup.

Teams like Oklahoma and Florida St bring more national interest when playing big name schools.

Are you more likely to watch Oklahoma vs Bama or Missouri vs Bama?

The game you would more likely watch is same one that the National TV audience would watch. That is what CBS pays for when it deals with the SEC. And that is how you get the current members of the SEC a bigger paycheck. A larger paycheck is the only way the SEC expands.
Posted by bgtiger
Prairieville
Member since Dec 2004
11426 posts
Posted on 9/27/11 at 9:01 pm to
Well, come help me be sarcastic about this subject in my hypothetical thread.

Posted by arwicklu
Houston, TX
Member since Jan 2008
7627 posts
Posted on 9/27/11 at 9:08 pm to
quote:

TV markets don't matter


Makes sense.

To add to that:

Revenue, television ads, and expanding the conference foot print is worthless.
Posted by Tigershatebama
New Orleans
Member since Feb 2006
263 posts
Posted on 9/27/11 at 9:14 pm to
Did you even read it? Expanding the conference footprint doesn't necessarily add revenue on a per school basis
Posted by GeauxTigersLee
Atlanta
Member since Sep 2010
4641 posts
Posted on 9/27/11 at 9:19 pm to
quote:

TV markets don't matter
Sure they don't...
quote:

The reason CBS and ESPN have huge deals with the SEC are because of the large number of marquee matchups that occur each year.
Then why does the PAC12 have a better TV contract currently than the SEC? It matters, but viewers matter more. Missouri adds to the SEC footprint, which brings in more viewers to watch SEC games because they will be part of the conference.
quote:

However, Missouri(and the St Louis market blah blah blah) isn't a team that is ever expected to be a dominate force in CFB
That's why the SEC added Arkansas and South Carolina 10 years ago also.
quote:

BUT it must also bring in more NATIONAL viewers whenever there is a marquee matchup.
Missouri playing LSU/Bama/Auburn/UGA will bring in a national audience. How is that any different than A&M?

Again, adding large markets increases the footprint of the SEC. I bet Missouri fans watch Big12 football because of conference affiliation. If they moved to the SEC, that viewership will follow.
Posted by 870Hog
99999 posts
Member since Jul 2011
16189 posts
Posted on 9/27/11 at 9:22 pm to
College football is a toss-up the ranked teams get more viewers, If you can get a program that is constantly ranked top 25 year in and year out its common sense that it will bring in more viewers. SEC is already broadcasted nationally.

Ranked teams = Higher viewers. Higher viewers = More $$.
This post was edited on 9/27/11 at 9:24 pm
Posted by Jwho77
cyperspace
Member since Sep 2003
76624 posts
Posted on 9/27/11 at 11:50 pm to
Again, markets and TV is the ONLY reason for any of these conferences adding teams.


Mizzou brings a state of 6 million people...and most of them are cable subscribers who will pay a bunch for the new SEC Network that WILL happen. Adding TAMU was all about selling the SECN to a state with 25 million people and their cable providers.

Thus, TV markets matter...a lot.
Posted by Tigershatebama
New Orleans
Member since Feb 2006
263 posts
Posted on 9/27/11 at 11:51 pm to
quote:

Then why does the PAC12 have a better TV contract currently than the SEC?


The Pac12 has a larger contract because of the fumble the SEC made in allowing CBS to air the marquee SEC matchup in the afternoon and not primetime where advertising costs more. Still, CBS pays alot more money for 1 game a week than any other network.

quote:

It matters, but viewers matter more. Missouri adds to the SEC footprint, which brings in more viewers to watch SEC games because they will be part of the conference.


Which is a wash in terms of revenue. Yes, those extra viewers bring in more money, but the SEC would still need to pay Missouri. Missouri doesn't have the fanbase outside of market to increase the per school tv revenue of the SEC. I highly doubt that Kentucky vs Bama brings in much more viewers outside of Kentucky and Bama. Oklahoma vs Bama however would bring in a national audience. Do you really believe that Missouri vs Bama will do very well outside of those 2 states? Remember, the SEC revenue may increase but it needs to be split 14 ways instead of just 12. Bringing in more viewers from Missouri only helps to pay for Missouri's share of the pie. An extra team needs to be able to generate its share of the pie AND increase the share for everyone else.

quote:

That's why the SEC added Arkansas and South Carolina 10 years ago also.


They were added to get a 12 team conference for a championship game. That 1 extra game has generated alot of revenue.

quote:

Missouri playing LSU/Bama/Auburn/UGA will bring in a national audience. How is that any different than A&M?


It's a gamble with A&M. There is the thought that out of the shadow of Texas they can be dominate. Will they be? I don't know, but it's at least a high risk high reward. Missouri is no sleeping giant. It has always been a middle of the road team, and there is really no reason to believe that will change.

quote:

I bet Missouri fans watch Big12 football because of conference affiliation. If they moved to the SEC, that viewership will follow.


Yes they will watch SEC football, but they don't bring anything up and above that. They don't gain new national viewers to the SEC. CBS will increase the payout to the SEC for these new viewers, but all of the new payout just goes right to Missouri's share of the pie.
Posted by Tigershatebama
New Orleans
Member since Feb 2006
263 posts
Posted on 9/27/11 at 11:59 pm to
quote:


Again, markets and TV is the ONLY reason for any of these conferences adding teams.


I agree with you if an SEC network were to exist, but in the current SEC TV model, no, markets do not matter.

Networks pay gobs of money to show the game of the week. LSU fans will always watch LSU games and Missouri fans will always watch Missouri games. The national interest, however, is in the big games. Marquee matchups and the chance to air them are the only thing that matters to the networks.
Posted by jturn17
Member since Jan 2011
4978 posts
Posted on 9/28/11 at 12:20 am to
quote:

I agree with you if an SEC network were to exist, but in the current SEC TV model, no, markets do not matter.


Right.. That's the whole reason why markets do matter because the SEC wants to move towards the Big 10 model with the SEC Network, and this is the first step towards doing that.
Posted by KaiserSoze99
Member since Aug 2011
31669 posts
Posted on 9/28/11 at 10:55 am to
errr. Here's my $.02.

Top TV markets:

21 St. Louis -- Missouri
22 Portland, OR
23 Pittsburgh
24 Charlotte, NC
25 Indianapolis
26 Baltimore
27 Raleigh-Durham
28 San Diego
29 Nashville
30 Hartford-New Haven
31 Kansas City -- Missouri

Misery U has potential viewers. Means more advertising dollars to the networks, which means more TV money for the products shown (SEC Football).

Carry on.
Posted by General13
Mobile
Member since Dec 2008
1363 posts
Posted on 9/28/11 at 11:10 am to
quote:

TV markets don't matter
Again, markets and TV is the ONLY reason for any of these conferences adding teams.


Mizzou brings a state of 6 million people...and most of them are cable subscribers who will pay a bunch for the new SEC Network that WILL happen. Adding TAMU was all about selling the SECN to a state with 25 million people and their cable providers.

Thus, TV markets matter...a lot.



This is absolutely true. TV markets are the driving force behind this entire shift in conferences.
Posted by jturn17
Member since Jan 2011
4978 posts
Posted on 9/28/11 at 11:28 am to
The problem is advertising dollars to networks doesn't pay as well as network subscriptions in certain markets.

The Big 10 receives 5.5x more money per subscription for their network in team markets than in non-team markets. This is where the Big 10 makes most of the money from their network. That's why the SEC is trying to add teams from Populous states with large TV markets.
Posted by Feed Me Popeyes
Baltimore, MD
Member since Apr 2008
2104 posts
Posted on 9/28/11 at 11:33 am to
if the current SEC tv model never changed, then you're right. But it's obvious that an SEC cable channel is coming eventually, and in that scenario (as others have pointed out), market size matters a lot
Posted by Hubbhogg
Fayettechill
Member since Dec 2010
13414 posts
Posted on 9/28/11 at 11:45 am to
quote:

TV markets don't matter


Say what?
Posted by Big Kat
Member since Feb 2009
5910 posts
Posted on 9/28/11 at 12:14 pm to
There's a reason A&M was the gold mine in this and not Oklahoma.

TV markets matter
Posted by Draconian Sanctions
Markey's bar
Member since Oct 2008
84766 posts
Posted on 9/28/11 at 12:23 pm to
quote:

TV markets don't matter


Yes, they do.

See the Big Ten Network.
Posted by attheua
Tuscaloosa
Member since Apr 2008
5442 posts
Posted on 9/28/11 at 1:13 pm to
For all the people so impressed with the CFB market in Missouri-

Mizzou averaged 60,000 in attendance last year, 10k under capacity.

SL and KC are not Birmingham or Atlanta or New Orleans. The people there don't give a damn about CFB and certainly not Mizzou.
Posted by attheua
Tuscaloosa
Member since Apr 2008
5442 posts
Posted on 9/28/11 at 1:15 pm to
quote:

Mizzou brings a state of 6 million people...and most of them are cable subscribers who will pay a bunch for the new SEC Network that WILL happen.


But they won't pay to fill up their stadium?

I don't buy it, and neither will CBS.
Posted by jturn17
Member since Jan 2011
4978 posts
Posted on 9/28/11 at 4:36 pm to
You don't understand the mechanics. Do some google searches about how the Big 10 network works.
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