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Started By
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re: why A&M was a huge get and why FSU, WVU, Clemson etc are not.
Posted on 9/18/11 at 10:26 pm to lsu777
Posted on 9/18/11 at 10:26 pm to lsu777
quote:
Your telling me that WVU has enough national appeal to bring in an extra 20 million to cover themselves plus atleast another 26 million to make the other schools atleast another 2 million?
doc has never taken an economics 101 course but he knows WVU likes to play on thursday nights
0
Posted on 9/18/11 at 10:26 pm to lsu777
quote:
Unless the SEC is shredding it's contract with ESPN for the SEC Network (same thing with the ACC), then marketability will matter.
This what the SEC and ACC will probably do, shred their contracts. Why? Texas' LHN has proved to be an extremely valuable commodity, for Texas.
The Big 10 network is extremely valuable as well.
Me, living in Louisiana, I would love to have an SEC Network on cable/Direct tv. All SEC all the time, 24-7. That channel has value, big time. It promotes all SEC Sports all the time. Talk about a great PR asset to pump up SEC sports, especially sports not supported by attendance. Soccer, swimming whatever.
Posted on 9/18/11 at 10:29 pm to TheDoc
quote:
-WVU brings huge parts of the the Pittsburgh, Baltimore, and Washington DC TV markets, as well as residual parts of the Philly/NY/NJ markets.
that's quite a stretch. understandably, WVU brings viewers in Pittsburgh since Morgantown is part of the Pittsburgh tv market. however, WVU would be behind the Steelers and Pitt. Washington & Baltimore is far fetched. i lived in WDC for 10 years and know that it goes 1. Redskins, 2. Maryland, 3. Va Tech 4. UVA. and Philly/NJ is really reaching.
Posted on 9/18/11 at 10:35 pm to lsu777
The links you provide only show that's the Big 10 network is a lucrative model. But it doesn't show how they're going about making their money. Is it about cable companies paying for their product to show viewers in markets that these schools are located near? Or is it advertising revenue from amount of viewers? Are only cable companies near the schools buying the product? Or is it being purchased for sports packages nation wide?
Nothing you've provided supports just having big markets over actual viewers.
Nothing you've provided supports just having big markets over actual viewers.
Posted on 9/18/11 at 10:42 pm to jturn17
the usa today article i think explains it.
I will sum it up though
1. the B1G gets a fee for any household anywhere that has subscribes or has a tv package that carries the B1G network. This fee is negotiated with the service provider i.e. direct tv, suddenlink, dish network, cox etc etc. Its the same thing the LHN is trying to negotiate right now and the same reason they are having a hard time...because they want to much per subscriber. The cable company makes this money back through advertisements, new subscriptions etc. B1G network really doesnt have many commercials so mainly through new subscribers.
2. The B1G gets a larger payout per household in states where existing B1G members reside. It is substantially more.
with this model it is easy to see why having schools in large populous states has its advantages.
hope this helps.
I will sum it up though
1. the B1G gets a fee for any household anywhere that has subscribes or has a tv package that carries the B1G network. This fee is negotiated with the service provider i.e. direct tv, suddenlink, dish network, cox etc etc. Its the same thing the LHN is trying to negotiate right now and the same reason they are having a hard time...because they want to much per subscriber. The cable company makes this money back through advertisements, new subscriptions etc. B1G network really doesnt have many commercials so mainly through new subscribers.
2. The B1G gets a larger payout per household in states where existing B1G members reside. It is substantially more.
with this model it is easy to see why having schools in large populous states has its advantages.
hope this helps.
Posted on 9/18/11 at 10:49 pm to jturn17
here you go from the usa today article
quote:
The Big Ten Network receives approximately $0.85 per cable subscriber in markets where it has a school, approximately $0.15 per subscriber out of market.
Posted on 9/18/11 at 10:55 pm to lsu777
uhhhh wassup doc??? care to respond? or are you gonna post the same cut and paste paragraph for the100th time?
Posted on 9/18/11 at 11:04 pm to lsu777
bump
Posted on 9/18/11 at 11:21 pm to lsu777
The BTN has been a major success for that conference. They have increased their revenue every year now and make more money off of that then their ESPN contract.
The SEC would be foolish not to follow suit.
The SEC would be foolish not to follow suit.
Posted on 9/18/11 at 11:23 pm to Bob Ag
couldnt agree more and I believe the SEC will follow suit, sooner rather then later.
Posted on 9/18/11 at 11:32 pm to lsu777
im going to sleep but damn it doc you better respond in the morning.
Posted on 9/19/11 at 7:26 am to lsu777
quote:
Total viewership is not important. I have seen many here say Missouri doesn't get many viewers in St louis and KC watching and it very well could be true. I believe SFP was the main one harping on this. Guess what it doesn't matter. The real money is in the premium royalties not commercials as the B1G has proven
if you had read my comments, i already stated this
we don't have anything close to an SEC cable channel to rival the big10s ready. we may down the line, but even then, we still don't have the population centers to make it work financially like the big10 network works. we'll still be behind
this is why the pac10 basically wanted to hold the entire west last year. their population footprint would have been huge
Posted on 9/19/11 at 7:30 am to mrbayoublu
quote:
Why? Texas' LHN has proved to be an extremely valuable commodity, for Texas.
Texas is in a unique position. They're by far the #1 school in an extremely populated state who is addicted to football
Ohio State is probably the only other state that could make something similar work
Posted on 9/19/11 at 7:32 am to lsu777
quote:
with this model it is easy to see why having schools in large populous states has its advantages.
if this is what determines revenue advancement, the SEC is going to start tracking back
the pac-x will rule
the big-x will be 2nd
then it will be the ACC
the SEC just doesn't have that much population, even if we add a few markets
Posted on 9/19/11 at 7:52 am to SlowFlowPro
no the SEC wont. I understand that we have less population and are locked in geography wise but the SEC would be able to demand more per subscriber then the B1G can due to the popularity of the SEC. and I understand that the SEC doesnt have anything close to the B1G network yet but alot of this expansion is driven by the SEC developing this kind of network and maximizing the revenue that this kind of setup can bring.
Posted on 9/19/11 at 8:04 am to lsu777
quote:
but the SEC would be able to demand more per subscriber then the B1G can due to the popularity of the SEC.
i think you underestimate the popularity of the big10 in the midwest. they support their schools and CFB is very popular
quote:
but alot of this expansion is driven by the SEC developing this kind of network and maximizing the revenue that this kind of setup can bring.
i just think there will be saturation and a breaking point. and i mean generally. if this is how it's going, i guess we have to try...but we need to go back to the role of innovator
the big10 took the biggest step in CFB since probably the SEC going to 12 for the title game
the pac-x is going to follow and is the first to really capitalize on streaming revenue
slive and company need to come up with the next one
Posted on 9/19/11 at 8:12 am to lsu777
Just FYI, but the B1GN makes money off of carriage fees, the SEC does not. That is why population and footprint matter more for the B1G. Those things matter for the SEC during negotiations, but do not continually add revenue like it does for the B1G. The problem with that is that when the SEC signed their deal with the networks it was so they would forgo making a private network. With the private network model the basis of your argument is moot.
The SEC does not make revenue in the same manner as the B1G. It is a total different revenue model. That being said, I am not convinced that WV provides the $$ to be a break even for the SEC. The problem is that I am not even sure that A&M does due to the fact that A&M does not bring a dominant market. As it sits A&M will bring Houston, which technically LSU could potentially bring after the death of the Big 12.
The SEC does not make revenue in the same manner as the B1G. It is a total different revenue model. That being said, I am not convinced that WV provides the $$ to be a break even for the SEC. The problem is that I am not even sure that A&M does due to the fact that A&M does not bring a dominant market. As it sits A&M will bring Houston, which technically LSU could potentially bring after the death of the Big 12.
Posted on 9/19/11 at 8:46 am to laxtonto
SFP agree completely with you post. and I dont underestimate the B1G popularity I just believe that SEC is more popular. Everything else I agree with 10000%
laxtonto I know that is the situation right now with the current"sec network" if you wanna call it that. But the B1G has proved the way to go is a private network and thats the direction I believe the SEC will go in asap.
laxtonto I know that is the situation right now with the current"sec network" if you wanna call it that. But the B1G has proved the way to go is a private network and thats the direction I believe the SEC will go in asap.
Posted on 9/19/11 at 8:52 am to laxtonto
quote:
As it sits A&M will bring Houston, which technically LSU could potentially bring after the death of the Big 12.
Thanks for the chuckle. I will abide many things, but Houston is an Aggie town. Even moreso than UT ... and LSU has less pull than Rice in Houston.
Posted on 9/19/11 at 9:09 am to TheDoc
quote:
-WVU serves Beer in their Stadium
Be honest, Doc. This is really why we won't these guys, isn't it?
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