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"ESPN3/MAC Digital Network" VS. "ESPN/SEC Cable Network"
This is what bothers me about the MAC deal. In many ways it is a mirror of the "ESPN/SEC Cable Network" - we'll call it the "ESPN3/MAC Digital Network".
- ESPN/SEC controls the entirety of the SEC
- ESPN/MAC controls the entirety of the MAC
- SEC has a dedicated ESPN sponsored channel on cable
- MAC has a dedicated ESPN sponsored channel on WatchESPN
- Cable companies pay carriage fees for SEC Network
- Internet providers pay carriage fees for ESPN3 where WatchESPN hosts the MAC Digital Network
- SEC is required to invest millions for on-campus studios for high-quality self-production to feed ESPN
- MAC is now required to invest million for on-campus studios for high-quality self-production to feed ESPN3
- SEC has unlimited upside in revenue that can grow with increased distribution and carriage fees and holds equity in the Network
- MAC gets a FIXED PAYMENT and NO UPSIDE in the WatchESPN Digital Version of the ESPN3 MAC Network
ESPN is making the MAC share in the investment and risks associated with starting this new studios to feed content produced by the MAC at the MAC's expense but is not sharing the potential revenue rewards with the MAC.
Recent articles show that the SEC schools invested between $2 million to $5 million a piece for their ESPN quality studios and the MAC will have to do the same except our payment is fixed at $700,000 per year.
It will take 4 of the 13 years of re-investing that $700,000 to pay for the new equipment required to feed ESPN not to mention staffing. Why couldn't the MAC asked to share in the ESPN3 carriage fees for this new "Digital Network"
WatchESPN could easily ask for modest carriage fees separated out from their existing ESPN3 carriage fees they charge the ISPs for access to ESPN3 through WatchESPN and the MAC could share in the revenue as Digital Rights and ESPN3 grows on the upside. Internet TV and viewing is in its very beginning at will grow dramatically over the next 13-years and the 15 new Digital Conference Networks on WatchESPN are the pre-cursor to this. Just substitute "cable company" with "internet company" and "ESPN" distribution and carriage fees with "ESPN3" distribution and carriage fees and "Cable Network" with "Digital Network".
You want access to the MAC Digital Network on WatchESPN? sign up with an ISP that offers this Network or buy the subscription package that carries it as the "Sport Pack".
The MAC completely Whiffed on this opportunity and will have to live with it for the next 13 YEARS !
MAC also made silly negotiations and contracts with Temple and UMass and got used by them too.
AAC, Sun-Belt, and C-USA - don't make the same mistake in your TV contract negotiations.
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08-19-2014 05:24 PM |
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