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$EC Network to charge $1.30 per subscriber
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Lurker Above Offline
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Post: #21
RE: $EC Network to charge $1.30 per subscriber
(01-13-2014 02:04 PM)CommuterBob Wrote:  
(01-13-2014 01:06 PM)Wedge Wrote:  
(01-13-2014 12:55 PM)bullet Wrote:  
(01-13-2014 12:42 PM)CommuterBob Wrote:  https://www.sportsbusinessdaily.com/Dail...C-Net.aspx

Within the SEC footprint, ESPN is asking for $1.30 per subscriber for the new SEC network. Outside the footprint, it'll be only 25 cents per subscriber. To compare, IIRC the BTN gets $0.85 per subscriber in the footprint and $0.15 per subscriber outside of it.

Wow. I guess my cable bill will be going up. Was there really any doubt of that though?

Be lucky to get .15 outside the footprint unless they are really putting a lot of good games down into the network. SEC schools aren't as big and alumni as widely distributed as Big 10. It will be interesting to see if the DISH network deal gets leaked. Disney and Dish have apparently agreed on everything except things like Hopper.

That will be interesting, because the reason DirecTV got its panties in a wad about Pac-12 Networks is that the Pac-12 made a deal with DISH before DirecTV, and DirecTV apparently thinks they ought to be the market-maker who sets the price for everyone else rather than being asked to pay what everyone else is already paying.

According to this, DISH has a tentative deal already for carriage of the SEC Network, and U-Verse already has one inked.

Quote:The SBJ also noted that Dish Network has agreed to carry the channel starting with its August launch, but noted that the deal has not been completed. Currently, the only announced distribution agreement for the network is with AT&T U-Verse.

http://www.bizjournals.com/birmingham/ne...Journal%29

Is it just a coincidence that the SEC Network's initial carriage fees are being released days before the NCAA Convention? Over 30% more revenue than the BTN in year one is STRONG!
01-13-2014 06:44 PM
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Jet915 Offline
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Post: #22
RE: $EC Network to charge $1.30 per subscriber
I can't imagine any location outside of the south paying those kind of fees. The Big Ten has a bigger overall following than the SEC and they can't even get that much.
01-13-2014 08:29 PM
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TerryD Offline
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Post: #23
RE: $EC Network to charge $1.30 per subscriber
(01-13-2014 01:22 PM)USAFMEDIC Wrote:  
(01-13-2014 01:13 PM)TerryD Wrote:  
(01-13-2014 12:42 PM)CommuterBob Wrote:  https://www.sportsbusinessdaily.com/Dail...C-Net.aspx

Within the SEC footprint, ESPN is asking for $1.30 per subscriber for the new SEC network. Outside the footprint, it'll be only 25 cents per subscriber. To compare, IIRC the BTN gets $0.85 per subscriber in the footprint and $0.15 per subscriber outside of it.

Wow. I guess my cable bill will be going up. Was there really any doubt of that though?

I have zero desire for access to the SEC Network and hate that it is foisted upon me against my will.

Come on TerryD.... You know Notre Dame is joining the SEC some day. Might as well familiarize yourself with the SEC now... 03-lmfao


Lol, being a grad of LSU Law School and living in Baton Rouge for 30 + years, I am familiar enough with the SEC.
01-13-2014 08:38 PM
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Frank the Tank Offline
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Post: #24
RE: $EC Network to charge $1.30 per subscriber
(01-13-2014 08:29 PM)Jet915 Wrote:  I can't imagine any location outside of the south paying those kind of fees. The Big Ten has a bigger overall following than the SEC and they can't even get that much.

Remember that the BTN carriage fees were negotiated in 2007 and 2008, which is considered to be a long time with respect to how even more valuable sports channels have become since then. If the BTN were negotiating today (and they'll be starting that process again soon with current carriers), you could expect something on par with what the SEC Network is asking for. I think ESPN will actually get that figure pretty easily in the Southeast. What is more important is how much is actually going to the SEC itself as opposed to Disney (whereas we know the Big Ten gets 49% of everything from the BTN).
01-13-2014 08:41 PM
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He1nousOne Offline
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Post: #25
RE: $EC Network to charge $1.30 per subscriber
(01-13-2014 06:44 PM)Lurker Above Wrote:  
(01-13-2014 02:04 PM)CommuterBob Wrote:  
(01-13-2014 01:06 PM)Wedge Wrote:  
(01-13-2014 12:55 PM)bullet Wrote:  
(01-13-2014 12:42 PM)CommuterBob Wrote:  https://www.sportsbusinessdaily.com/Dail...C-Net.aspx

Within the SEC footprint, ESPN is asking for $1.30 per subscriber for the new SEC network. Outside the footprint, it'll be only 25 cents per subscriber. To compare, IIRC the BTN gets $0.85 per subscriber in the footprint and $0.15 per subscriber outside of it.

Wow. I guess my cable bill will be going up. Was there really any doubt of that though?

Be lucky to get .15 outside the footprint unless they are really putting a lot of good games down into the network. SEC schools aren't as big and alumni as widely distributed as Big 10. It will be interesting to see if the DISH network deal gets leaked. Disney and Dish have apparently agreed on everything except things like Hopper.

That will be interesting, because the reason DirecTV got its panties in a wad about Pac-12 Networks is that the Pac-12 made a deal with DISH before DirecTV, and DirecTV apparently thinks they ought to be the market-maker who sets the price for everyone else rather than being asked to pay what everyone else is already paying.

According to this, DISH has a tentative deal already for carriage of the SEC Network, and U-Verse already has one inked.

Quote:The SBJ also noted that Dish Network has agreed to carry the channel starting with its August launch, but noted that the deal has not been completed. Currently, the only announced distribution agreement for the network is with AT&T U-Verse.

http://www.bizjournals.com/birmingham/ne...Journal%29

Is it just a coincidence that the SEC Network's initial carriage fees are being released days before the NCAA Convention? Over 30% more revenue than the BTN in year one is STRONG!

The power of having ESPN negotiate for you. The Big Ten is already vested in ownership of theirs. It will be interesting to compare what schools ACTUALLY get as a direct return.
01-13-2014 08:52 PM
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billings Offline
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Post: #26
RE: $EC Network to charge $1.30 per subscriber
Just put it on a sports package as an option so I don't have to pay for it and I am fine. Direct TV is not covering PAC as the PAC refused their offer to put it on a pay package and not a base package. I was happy that Direct TV turned down the PAC demands.


PAC network simply does not carry many of the really important PAC games and is not worth the money. SEC network will have to be more then Vandy, Ole Miss, and Mississippi State games to be worth anything.
01-13-2014 08:58 PM
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C Marlow Offline
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Post: #27
RE: $EC Network to charge $1.30 per subscriber
Personally I loathe the fact that I have to pay for the BTN in order to have cable TV. If any more conference networks are shoved down our throats by our cable providers, I'm cutting the cord. I'm seriously looking to cut the cord now, but the cable provider I have is reasonable compared to most of the others.
01-14-2014 12:02 AM
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Lurker Above Offline
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Post: #28
RE: $EC Network to charge $1.30 per subscriber
(01-13-2014 08:41 PM)Frank the Tank Wrote:  
(01-13-2014 08:29 PM)Jet915 Wrote:  I can't imagine any location outside of the south paying those kind of fees. The Big Ten has a bigger overall following than the SEC and they can't even get that much.

Remember that the BTN carriage fees were negotiated in 2007 and 2008, which is considered to be a long time with respect to how even more valuable sports channels have become since then. If the BTN were negotiating today (and they'll be starting that process again soon with current carriers), you could expect something on par with what the SEC Network is asking for. I think ESPN will actually get that figure pretty easily in the Southeast. What is more important is how much is actually going to the SEC itself as opposed to Disney (whereas we know the Big Ten gets 49% of everything from the BTN).

Outkick the Coverage's latest.
http://outkickthecoverage.com/sec-networ...launch.php
01-14-2014 12:32 AM
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krup Offline
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Post: #29
RE: $EC Network to charge $1.30 per subscriber
(01-14-2014 12:32 AM)Lurker Above Wrote:  
(01-13-2014 08:41 PM)Frank the Tank Wrote:  
(01-13-2014 08:29 PM)Jet915 Wrote:  I can't imagine any location outside of the south paying those kind of fees. The Big Ten has a bigger overall following than the SEC and they can't even get that much.

Remember that the BTN carriage fees were negotiated in 2007 and 2008, which is considered to be a long time with respect to how even more valuable sports channels have become since then. If the BTN were negotiating today (and they'll be starting that process again soon with current carriers), you could expect something on par with what the SEC Network is asking for. I think ESPN will actually get that figure pretty easily in the Southeast. What is more important is how much is actually going to the SEC itself as opposed to Disney (whereas we know the Big Ten gets 49% of everything from the BTN).

Outkick the Coverage's latest.
http://outkickthecoverage.com/sec-networ...launch.php
He is pretty cocky about how far this seemingly puts the SEC ahead of the B1G, which is ridiculous considering all the details aren't known.

"That's 30 percent more than the Big Ten Network gets in its footprint after seven years of existence. " This is written as if the SEC will make 30% more than the B1G in its footprint on merit when, since a lot of the BTN cable deals were made 6-7 years ago before their conference network model was "proven", it actually means the B1G should be looking at a substantial increase upon renewal.

"We also don't know what the revenue share will be between the SEC and ESPN either, but now you can start to see why the SEC Network is such a gamechanger" We don't know the revenue share will be between the SEC and ESPN, and the SEC WILL make a boatload of money, but since the SEC gets no equity share of the network, it is not a "gamechanger". The SEC's popularity gave them unique leverage in this negotiation that is unlikely to be repeated by another conference that brings a similar lack of content (or even less) to the bargaining table, like the ACC.
01-14-2014 08:34 AM
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Lurker Above Offline
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Post: #30
RE: $EC Network to charge $1.30 per subscriber
(01-14-2014 08:34 AM)krup Wrote:  
(01-14-2014 12:32 AM)Lurker Above Wrote:  
(01-13-2014 08:41 PM)Frank the Tank Wrote:  
(01-13-2014 08:29 PM)Jet915 Wrote:  I can't imagine any location outside of the south paying those kind of fees. The Big Ten has a bigger overall following than the SEC and they can't even get that much.

Remember that the BTN carriage fees were negotiated in 2007 and 2008, which is considered to be a long time with respect to how even more valuable sports channels have become since then. If the BTN were negotiating today (and they'll be starting that process again soon with current carriers), you could expect something on par with what the SEC Network is asking for. I think ESPN will actually get that figure pretty easily in the Southeast. What is more important is how much is actually going to the SEC itself as opposed to Disney (whereas we know the Big Ten gets 49% of everything from the BTN).

Outkick the Coverage's latest.
http://outkickthecoverage.com/sec-networ...launch.php
He is pretty cocky about how far this seemingly puts the SEC ahead of the B1G, which is ridiculous considering all the details aren't known.

"That's 30 percent more than the Big Ten Network gets in its footprint after seven years of existence. " This is written as if the SEC will make 30% more than the B1G in its footprint on merit when, since a lot of the BTN cable deals were made 6-7 years ago before their conference network model was "proven", it actually means the B1G should be looking at a substantial increase upon renewal.

"We also don't know what the revenue share will be between the SEC and ESPN either, but now you can start to see why the SEC Network is such a gamechanger" We don't know the revenue share will be between the SEC and ESPN, and the SEC WILL make a boatload of money, but since the SEC gets no equity share of the network, it is not a "gamechanger". The SEC's popularity gave them unique leverage in this negotiation that is unlikely to be repeated by another conference that brings a similar lack of content (or even less) to the bargaining table, like the ACC.

It was widely reported the SEC and ESPN would be splitting the profits. Some of you are just in denial.
01-14-2014 08:44 AM
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Post: #31
RE: $EC Network to charge $1.30 per subscriber
(01-14-2014 08:34 AM)krup Wrote:  
(01-14-2014 12:32 AM)Lurker Above Wrote:  
(01-13-2014 08:41 PM)Frank the Tank Wrote:  
(01-13-2014 08:29 PM)Jet915 Wrote:  I can't imagine any location outside of the south paying those kind of fees. The Big Ten has a bigger overall following than the SEC and they can't even get that much.

Remember that the BTN carriage fees were negotiated in 2007 and 2008, which is considered to be a long time with respect to how even more valuable sports channels have become since then. If the BTN were negotiating today (and they'll be starting that process again soon with current carriers), you could expect something on par with what the SEC Network is asking for. I think ESPN will actually get that figure pretty easily in the Southeast. What is more important is how much is actually going to the SEC itself as opposed to Disney (whereas we know the Big Ten gets 49% of everything from the BTN).

Outkick the Coverage's latest.
http://outkickthecoverage.com/sec-networ...launch.php
He is pretty cocky about how far this seemingly puts the SEC ahead of the B1G, which is ridiculous considering all the details aren't known.

"That's 30 percent more than the Big Ten Network gets in its footprint after seven years of existence. " This is written as if the SEC will make 30% more than the B1G in its footprint on merit when, since a lot of the BTN cable deals were made 6-7 years ago before their conference network model was "proven", it actually means the B1G should be looking at a substantial increase upon renewal.

"We also don't know what the revenue share will be between the SEC and ESPN either, but now you can start to see why the SEC Network is such a gamechanger" We don't know the revenue share will be between the SEC and ESPN, and the SEC WILL make a boatload of money, but since the SEC gets no equity share of the network, it is not a "gamechanger". The SEC's popularity gave them unique leverage in this negotiation that is unlikely to be repeated by another conference that brings a similar lack of content (or even less) to the bargaining table, like the ACC.

The option to buy equity in the network is back loaded. The start up costs were front loaded. That's a great deal of caution both on the SEC's and ESPN's part. But, given the uncharted waters a bit understandable. I don't think the 20 million per team range in addition to other contracts is unreasonable, but what it depends upon is the economy. High dollar cable is a luxury and as the middle class gets squeezed one that internet can at least make up for partially if people decide to cut back. I look forward to the SEC Network and hopefully for more SEC baseball. But all of these conference networks will be subject to what entertainment budgets can spare if we don't have real job growth and true strategies for national debt reduction put into place. Now given the likelihood that our current sets of politicians will ever do anything about the latter that leaves such ventures as conference networks hanging it out over the side. To the credit of network proponents most Americans seem like they would rather walk to work or give up food than cut the cord. Just partially kidding there, I hope. Anyway, we'll see.
(This post was last modified: 01-14-2014 08:50 AM by JRsec.)
01-14-2014 08:45 AM
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krup Offline
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Post: #32
RE: $EC Network to charge $1.30 per subscriber
(01-14-2014 08:44 AM)Lurker Above Wrote:  
(01-14-2014 08:34 AM)krup Wrote:  
(01-14-2014 12:32 AM)Lurker Above Wrote:  
(01-13-2014 08:41 PM)Frank the Tank Wrote:  
(01-13-2014 08:29 PM)Jet915 Wrote:  I can't imagine any location outside of the south paying those kind of fees. The Big Ten has a bigger overall following than the SEC and they can't even get that much.

Remember that the BTN carriage fees were negotiated in 2007 and 2008, which is considered to be a long time with respect to how even more valuable sports channels have become since then. If the BTN were negotiating today (and they'll be starting that process again soon with current carriers), you could expect something on par with what the SEC Network is asking for. I think ESPN will actually get that figure pretty easily in the Southeast. What is more important is how much is actually going to the SEC itself as opposed to Disney (whereas we know the Big Ten gets 49% of everything from the BTN).

Outkick the Coverage's latest.
http://outkickthecoverage.com/sec-networ...launch.php
He is pretty cocky about how far this seemingly puts the SEC ahead of the B1G, which is ridiculous considering all the details aren't known.

"That's 30 percent more than the Big Ten Network gets in its footprint after seven years of existence. " This is written as if the SEC will make 30% more than the B1G in its footprint on merit when, since a lot of the BTN cable deals were made 6-7 years ago before their conference network model was "proven", it actually means the B1G should be looking at a substantial increase upon renewal.

"We also don't know what the revenue share will be between the SEC and ESPN either, but now you can start to see why the SEC Network is such a gamechanger" We don't know the revenue share will be between the SEC and ESPN, and the SEC WILL make a boatload of money, but since the SEC gets no equity share of the network, it is not a "gamechanger". The SEC's popularity gave them unique leverage in this negotiation that is unlikely to be repeated by another conference that brings a similar lack of content (or even less) to the bargaining table, like the ACC.

It was widely reported the SEC and ESPN would be splitting the profits. Some of you are just in denial.
Pretty embarrassing of you to not know the difference between "splitting the profits" and "no equity share".
(This post was last modified: 01-14-2014 09:35 AM by krup.)
01-14-2014 09:34 AM
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10thMountain Offline
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Post: #33
RE: $EC Network to charge $1.30 per subscriber
The haters are in denial as Slive laughs all the way to the bank
01-14-2014 09:58 AM
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arkstfan Away
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Post: #34
RE: $EC Network to charge $1.30 per subscriber
Splitting the profits can mean anything between 99-1 in favor of ESPN to 99-1 in favor of the SEC. Splitting does not infer an equal split. There are volumes of cases out of the movie and music industry over media conglomerate accounting of expenses and then splitting profit.

And not having equity cuts two ways. First it matters in exercise of control and second it matters if the relationship turns sour. Buying out a licensee who owns the whole ball of wax tends to be more expensive than buying out one who owns 51%. But on the flip side, knowing the license expires puts a lot of pressure on the networks to keep the conferences happy.

I think it is interesting that since the network craze has started, Fox has purchased controlling interest in BTN and ESPN's two big deals (LHN and SECN) have been wholly owned by ESPN on a licensed basis.
01-14-2014 10:24 AM
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krup Offline
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Post: #35
RE: $EC Network to charge $1.30 per subscriber
(01-14-2014 09:58 AM)10thMountain Wrote:  The haters are in denial as Slive laughs all the way to the bank

Who's the one in denial? The SEC fans are lapping up drivel from Outkick the Coverage like:

"Multiply this $1.30 per month carriage fee request times the number of cable and satellite subscribers in the SEC's footprint -- 30 million -- and you've got nearly $400 million from the SEC alone.

That would be $28.5 million per team just from the SEC Network's money in the SEC. "

Really?? Is ESPN going to let the SEC keep 100% of the revenue??? What about costs??

In 2012, Forbes did a profile on the BTN (51 - 49 split) that showed each of the 12 B1G team was receiving a payout of $7.2MM based on $265MM in BTN total revenue.

Using the same percentage for revenue to payout, if you assume that ESPN is splitting the profits 50-50 with the SEC, $400MM in SEC network revenue would net each of the 14 SEC schools about $10MM, not the $28.5MM OTK idiocy.
01-14-2014 10:42 AM
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bullet Offline
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Post: #36
RE: $EC Network to charge $1.30 per subscriber
(01-14-2014 10:42 AM)krup Wrote:  
(01-14-2014 09:58 AM)10thMountain Wrote:  The haters are in denial as Slive laughs all the way to the bank

Who's the one in denial? The SEC fans are lapping up drivel from Outkick the Coverage like:

"Multiply this $1.30 per month carriage fee request times the number of cable and satellite subscribers in the SEC's footprint -- 30 million -- and you've got nearly $400 million from the SEC alone.

That would be $28.5 million per team just from the SEC Network's money in the SEC. "

Really?? Is ESPN going to let the SEC keep 100% of the revenue??? What about costs??

In 2012, Forbes did a profile on the BTN (51 - 49 split) that showed each of the 12 B1G team was receiving a payout of $7.2MM based on $265MM in BTN total revenue.

Using the same percentage for revenue to payout, if you assume that ESPN is splitting the profits 50-50 with the SEC, $400MM in SEC network revenue would net each of the 14 SEC schools about $10MM, not the $28.5MM OTK idiocy.

Clay Travis makes Bleacher report look authoritative.

The SEC will make a lot of money, but it will take longer and will be a whole lot less than Travis talks about.

I've only seen the 50/50 profit split one place other than message boards. They've been pretty secretive about the deal. Most likely, it will be similar to the BTN or LHN where the equity takes a while. In the BTN, there were startup costs fronted by Fox that had to be paid back before substantial $ rolled in to the schools. With the LHN, the equity kicker doesn't come in until the LHN has generated a certain amount of revenue.
01-14-2014 11:42 AM
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1845 Bear Offline
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Post: #37
RE: $EC Network to charge $1.30 per subscriber
(01-14-2014 10:42 AM)krup Wrote:  
(01-14-2014 09:58 AM)10thMountain Wrote:  The haters are in denial as Slive laughs all the way to the bank

Who's the one in denial? The SEC fans are lapping up drivel from Outkick the Coverage like:

"Multiply this $1.30 per month carriage fee request times the number of cable and satellite subscribers in the SEC's footprint -- 30 million -- and you've got nearly $400 million from the SEC alone.

That would be $28.5 million per team just from the SEC Network's money in the SEC. "

Really?? Is ESPN going to let the SEC keep 100% of the revenue??? What about costs??

In 2012, Forbes did a profile on the BTN (51 - 49 split) that showed each of the 12 B1G team was receiving a payout of $7.2MM based on $265MM in BTN total revenue.

Using the same percentage for revenue to payout, if you assume that ESPN is splitting the profits 50-50 with the SEC, $400MM in SEC network revenue would net each of the 14 SEC schools about $10MM, not the $28.5MM OTK idiocy.

The OTK numbers were so overblown it wasn't even funny. The SECN will be lucrative but come on.
01-14-2014 11:42 AM
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Post: #38
RE: $EC Network to charge $1.30 per subscriber
(01-14-2014 09:34 AM)krup Wrote:  
(01-14-2014 08:44 AM)Lurker Above Wrote:  
(01-14-2014 08:34 AM)krup Wrote:  
(01-14-2014 12:32 AM)Lurker Above Wrote:  
(01-13-2014 08:41 PM)Frank the Tank Wrote:  Remember that the BTN carriage fees were negotiated in 2007 and 2008, which is considered to be a long time with respect to how even more valuable sports channels have become since then. If the BTN were negotiating today (and they'll be starting that process again soon with current carriers), you could expect something on par with what the SEC Network is asking for. I think ESPN will actually get that figure pretty easily in the Southeast. What is more important is how much is actually going to the SEC itself as opposed to Disney (whereas we know the Big Ten gets 49% of everything from the BTN).

Outkick the Coverage's latest.
http://outkickthecoverage.com/sec-networ...launch.php
He is pretty cocky about how far this seemingly puts the SEC ahead of the B1G, which is ridiculous considering all the details aren't known.

"That's 30 percent more than the Big Ten Network gets in its footprint after seven years of existence. " This is written as if the SEC will make 30% more than the B1G in its footprint on merit when, since a lot of the BTN cable deals were made 6-7 years ago before their conference network model was "proven", it actually means the B1G should be looking at a substantial increase upon renewal.

"We also don't know what the revenue share will be between the SEC and ESPN either, but now you can start to see why the SEC Network is such a gamechanger" We don't know the revenue share will be between the SEC and ESPN, and the SEC WILL make a boatload of money, but since the SEC gets no equity share of the network, it is not a "gamechanger". The SEC's popularity gave them unique leverage in this negotiation that is unlikely to be repeated by another conference that brings a similar lack of content (or even less) to the bargaining table, like the ACC.

It was widely reported the SEC and ESPN would be splitting the profits. Some of you are just in denial.
Pretty embarrassing of you to not know the difference between "splitting the profits" and "no equity share".

If you are splitting the profits 50/50 then "equity" means very little when the conference keeps 100% ownership of the content, like the SEC is. ESPN has 100% ownership in the network, but if and when the contract ends ESPN will own a SEC Network with zero content and the SEC would have to finance the rebranding of a new network.

Embarrassed now?
01-14-2014 11:51 AM
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krup Offline
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Post: #39
RE: $EC Network to charge $1.30 per subscriber
(01-14-2014 11:51 AM)Lurker Above Wrote:  
(01-14-2014 09:34 AM)krup Wrote:  
(01-14-2014 08:44 AM)Lurker Above Wrote:  
(01-14-2014 08:34 AM)krup Wrote:  
(01-14-2014 12:32 AM)Lurker Above Wrote:  Outkick the Coverage's latest.
http://outkickthecoverage.com/sec-networ...launch.php
He is pretty cocky about how far this seemingly puts the SEC ahead of the B1G, which is ridiculous considering all the details aren't known.

"That's 30 percent more than the Big Ten Network gets in its footprint after seven years of existence. " This is written as if the SEC will make 30% more than the B1G in its footprint on merit when, since a lot of the BTN cable deals were made 6-7 years ago before their conference network model was "proven", it actually means the B1G should be looking at a substantial increase upon renewal.

"We also don't know what the revenue share will be between the SEC and ESPN either, but now you can start to see why the SEC Network is such a gamechanger" We don't know the revenue share will be between the SEC and ESPN, and the SEC WILL make a boatload of money, but since the SEC gets no equity share of the network, it is not a "gamechanger". The SEC's popularity gave them unique leverage in this negotiation that is unlikely to be repeated by another conference that brings a similar lack of content (or even less) to the bargaining table, like the ACC.

It was widely reported the SEC and ESPN would be splitting the profits. Some of you are just in denial.
Pretty embarrassing of you to not know the difference between "splitting the profits" and "no equity share".

If you are splitting the profits 50/50 then "equity" means very little when the conference keeps 100% ownership of the content, like the SEC is. ESPN has 100% ownership in the network, but if and when the contract ends ESPN will own a SEC Network with zero content and the SEC would have to finance the rebranding of a new network.

Embarrassed now?

Yes, I still am embarrassed, for you.

We were talking about what the equity meant to the CONFERENCES, not the network.

If someone wants to come along and buy the BTN, the B1G schools get their 1/14th share of the 49% equity. Based on Forbes 2012 valuation of the BTN at $1.3 billion, each B1G school would get about $45 million. If someone wants to come along and buy the SEC network from ESPN, the SEC schools get nothing from the sale.

Also, to get back to your ESPN comment, if you think ESPN became the juggernaut they are by not including rights of refusal in deals like the SEC network setup (risking the network would become a white elephant for them) you are even more foolish.
01-14-2014 12:13 PM
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RE: $EC Network to charge $1.30 per subscriber
(01-14-2014 12:13 PM)krup Wrote:  
(01-14-2014 11:51 AM)Lurker Above Wrote:  
(01-14-2014 09:34 AM)krup Wrote:  
(01-14-2014 08:44 AM)Lurker Above Wrote:  
(01-14-2014 08:34 AM)krup Wrote:  He is pretty cocky about how far this seemingly puts the SEC ahead of the B1G, which is ridiculous considering all the details aren't known.

"That's 30 percent more than the Big Ten Network gets in its footprint after seven years of existence. " This is written as if the SEC will make 30% more than the B1G in its footprint on merit when, since a lot of the BTN cable deals were made 6-7 years ago before their conference network model was "proven", it actually means the B1G should be looking at a substantial increase upon renewal.

"We also don't know what the revenue share will be between the SEC and ESPN either, but now you can start to see why the SEC Network is such a gamechanger" We don't know the revenue share will be between the SEC and ESPN, and the SEC WILL make a boatload of money, but since the SEC gets no equity share of the network, it is not a "gamechanger". The SEC's popularity gave them unique leverage in this negotiation that is unlikely to be repeated by another conference that brings a similar lack of content (or even less) to the bargaining table, like the ACC.

It was widely reported the SEC and ESPN would be splitting the profits. Some of you are just in denial.
Pretty embarrassing of you to not know the difference between "splitting the profits" and "no equity share".

If you are splitting the profits 50/50 then "equity" means very little when the conference keeps 100% ownership of the content, like the SEC is. ESPN has 100% ownership in the network, but if and when the contract ends ESPN will own a SEC Network with zero content and the SEC would have to finance the rebranding of a new network.

Embarrassed now?

Yes, I still am embarrassed, for you.

We were talking about what the equity meant to the CONFERENCES, not the network.

If someone wants to come along and buy the BTN, the B1G schools get their 1/14th share of the 49% equity. Based on Forbes 2012 valuation of the BTN at $1.3 billion, each B1G school would get about $45 million. If someone wants to come along and buy the SEC network from ESPN, the SEC schools get nothing from the sale.

Also, to get back to your ESPN comment, if you think ESPN became the juggernaut they are by not including rights of refusal in deals like the SEC network setup (risking the network would become a white elephant for them) you are even more foolish.

Sigh... The SEC would still own 100% of the content after the contract expired and would still get 1/2 of the profits during the contract. "Equity" means practically nothing here. I believe Frank the Tank mentioned equity being important when touting the agreement the B1G had with FOX, but ownership of the content and 1/2 of the profits is way more important. If you do not believe me ask Frank.
01-14-2014 12:21 PM
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