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Big 12 Network

doneagain

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Mar 12, 2004
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First off, we all know the Longhorn Network presents some issues/challenges. No need to get into that here.

That out of the way, I do not believe the conference should go the traditional cable-channel-route, but I do believe it needs it's own channel.

Despite the population of Texas, the 4 remaining states in the conference footprint do not indicate to me that the population is there to demand a channel devoted to the conference such as the SEC Network, or whatever.

What I do think the conference should do is create an online network modeled after what Vince McMahon's WWE has done (no I have never subscribed, but I did check it out once during a free preview weekend).

Instead of a cable network that the conference would be forced to find carriers for and then negotiate a fee per household for, just do an online streaming channel where anyone anywhere - not just someone in Comcast or time warner's footprint - can subscribe to - like the WWE's online channel is doing.

Charge patrons $10 a month to subscribe. Negotiate with the schools individually to be allowed to show some of their tier 3 programming and miscellaneous sports, recruiting shows, coaches shows, nightly recap, draft specials, classic game replays, etc... filler-type programming and there you have a 24-hour a day, on-demand, streaming network like the WWE successfully runs. For some schools with rights agreements to companies such as IMG, it might take a little work.

They could even designate a football game of the week - which might be an Iowa State versus North Dakota State type of game,, or have a couple of games each week... maybe even hold a Thursday night game or something periodically. There are a lot of basketball and baseball games that could be streamed. They could do an all-day signing day special for national signing day in February.

During the spring, they could show spring games and have spring practice update shows on the Big 12's version of "sportscenter" for the conference.

Texas would even be a feature despite its longhorn network, because they would/could be featured when, for example, their volleyball team travels to WV. They do not have rights to their away games for the LHN.

The B12 footprint has about 37 million residents within its state boundaries. Obviously schools like Oklahoma and Texas have national followings, so subscribers would not be held to only areas in its footprint. Being stream over the internet, anyone with internet access and a credit card could subscribe. And schools like WVU that have lots of alumni or displaced natives in areas like North Carolina could subscribe because it is not tied into a cable carrier deal.

If the conference was smart, it would periodically have a matchup feature with say Iowa State versus Alabama, where for that month, thousands of Bama fans would subscribe in order to be able to watch that specific game. The majority would cancel following that game, but you still got a bump in your subscribers because the Bama fans paid to watch their team on the streaming B12 network. And then again, some might forget to cancel for a while and you ride that wave until they do.

You still put your marquee games on the networks, but you throw a nugget on their periodically to entice subscribers to tune in.

If my math is right... hey I grew up a hillbilly... if only 5% of the footprint (37 million) subscribes at $10 a month (1.85 million monthly subscribers X $10), you still end up with $222 million per year ($18.5 million per month X 12 months).

Lets say the conference keeps $22 million per year for operational expenses, you still have $200 million to distribute to the schools.

Even at 1% of the footprint, you still have $44 million per year brought in before expenses.

Anyway, just a thought. With Netflix, Hulu and Amazon Prime streaming services growing and cutting in on traditional cable programming methods, I think the streaming service is the way things will go in the future and the B12 would do well to be ahead of the game and start broadcasting sooner rather than later.
 
Hmmm.... ....I could read War And Peace.... ...or the opening post in this thread.

Which would I finish first ?

--------------

Really though, it seems well thought out. You're right, the Big 12 footprint is actually pretty small (even with that extremely long toe nail). Still, I think a cable network is the way to go....with a major sponsor (Fox) that can bully the cable companies. I live fairly close to PSU and don't have the Big 10 Network (no major network backing) yet I do have THREE SEC channels (backed by ESPN/ABC/Disney).
 
First off, we all know the Longhorn Network presents some issues/challenges. No need to get into that here.

That out of the way, I do not believe the conference should go the traditional cable-channel-route, but I do believe it needs it's own channel.

Despite the population of Texas, the 4 remaining states in the conference footprint do not indicate to me that the population is there to demand a channel devoted to the conference such as the SEC Network, or whatever.

What I do think the conference should do is create an online network modeled after what Vince McMahon's WWE has done (no I have never subscribed, but I did check it out once during a free preview weekend).

Instead of a cable network that the conference would be forced to find carriers for and then negotiate a fee per household for, just do an online streaming channel where anyone anywhere - not just someone in Comcast or time warner's footprint - can subscribe to - like the WWE's online channel is doing.

Charge patrons $10 a month to subscribe. Negotiate with the schools individually to be allowed to show some of their tier 3 programming and miscellaneous sports, recruiting shows, coaches shows, nightly recap, draft specials, classic game replays, etc... filler-type programming and there you have a 24-hour a day, on-demand, streaming network like the WWE successfully runs. For some schools with rights agreements to companies such as IMG, it might take a little work.

They could even designate a football game of the week - which might be an Iowa State versus North Dakota State type of game,, or have a couple of games each week... maybe even hold a Thursday night game or something periodically. There are a lot of basketball and baseball games that could be streamed. They could do an all-day signing day special for national signing day in February.

During the spring, they could show spring games and have spring practice update shows on the Big 12's version of "sportscenter" for the conference.

Texas would even be a feature despite its longhorn network, because they would/could be featured when, for example, their volleyball team travels to WV. They do not have rights to their away games for the LHN.

The B12 footprint has about 37 million residents within its state boundaries. Obviously schools like Oklahoma and Texas have national followings, so subscribers would not be held to only areas in its footprint. Being stream over the internet, anyone with internet access and a credit card could subscribe. And schools like WVU that have lots of alumni or displaced natives in areas like North Carolina could subscribe because it is not tied into a cable carrier deal.

If the conference was smart, it would periodically have a matchup feature with say Iowa State versus Alabama, where for that month, thousands of Bama fans would subscribe in order to be able to watch that specific game. The majority would cancel following that game, but you still got a bump in your subscribers because the Bama fans paid to watch their team on the streaming B12 network. And then again, some might forget to cancel for a while and you ride that wave until they do.

You still put your marquee games on the networks, but you throw a nugget on their periodically to entice subscribers to tune in.

If my math is right... hey I grew up a hillbilly... if only 5% of the footprint (37 million) subscribes at $10 a month (1.85 million monthly subscribers X $10), you still end up with $222 million per year ($18.5 million per month X 12 months).

Lets say the conference keeps $22 million per year for operational expenses, you still have $200 million to distribute to the schools.

Even at 1% of the footprint, you still have $44 million per year brought in before expenses.

Anyway, just a thought. With Netflix, Hulu and Amazon Prime streaming services growing and cutting in on traditional cable programming methods, I think the streaming service is the way things will go in the future and the B12 would do well to be ahead of the game and start broadcasting sooner rather than later.


It's a good idea and could be workable. There are probably a few issues though in that start up costs would likely be higher than $22 million per year. The Pac 12 is paying for their own network and own everything-cutting out the middle man. After three years they are only able to distribute about $1 million per school and only have about 11 million subscribers. SNL Kagan estimates that the Pac12Nets had $73.2 million in revenue and $72.7 million in expenses in 2014 according to the Mercury News. Also they believed to be reaching approximately half of all TV households in the league’s six-state footprint. Athletics are likely much more desirable by fans in BIG 12 country, but there are lots less people as you mentioned. Getting $10 per subscriber might be difficult for anyone but who knows maybe 5% would go for that. With the numbers you put out though it only equates to about $4 million per school and some schools already get more than that with tier 3 revenues on their own.

Another issue is that the LHN doesn't allow any competition. Not sure any of their content could be on such a network based on the LHN deal. You'd have to think with three other instate programs that fans in Texas might still subscribe, but probably not in the desired numbers.

Finally, since everyone has tier 3 deals that last different amounts of time, rights might have to be bought back to make that work. Who knows though--maybe there is some way to work out your idea with everyone retaining their own rights, but distributing them through this pay per view streaming site as well.

Expanding into new large markets could also help the bottom line perhaps.
 
Hmmm.... ....I could read War And Peace.... ...or the opening post in this thread.

Which would I finish first ?

--------------

Really though, it seems well thought out. You're right, the Big 12 footprint is actually pretty small (even with that extremely long toe nail). Still, I think a cable network is the way to go....with a major sponsor (Fox) that can bully the cable companies. I live fairly close to PSU and don't have the Big 10 Network (no major network backing) yet I do have THREE SEC channels (backed by ESPN/ABC/Disney).
How do we get Texas to play nice? It looks like everyone else wants this to work but Texas is always there to stop any progress unless it benefits them only.
 
How do we get Texas to play nice? It looks like everyone else wants this to work but Texas is always there to stop any progress unless it benefits them only.

ESPN.

They basically own the Longhorn Network and I don't believe that they've come close to generating a profit. Possibly adding the rest of the conference would help.....but EACH school or current rights owner would need to negotiate their own contract.

So Texas would get the most......and I'm not sure other conference members are ready to revisit disproportionate payouts (although really that's what we have anyhow).
 
Hate to rain on your parade here, but you've got some real world problems with this idea.

1) All the schools have sold their Tier 3 content. That would all have to be repurchased, keeping in mind that even lower-end teams have Tier 3 deals for around $4-5 million a year.

2) ESPN and Fox own the Tier 1 & 2 content. That's out the window. You would be limited to Tier 3 content, so you have a limited selection, and it's a selection of the least desirable content.

3) Related to #2, your idea about an Iowa St/Alabama game is out the window, for that reason. Those games will get picked up by ESPN or Fox.

4) You aren't going to make a living on coaches' shows or volleyball. The only thing that makes money is football, and to a lesser extent basketball. The problem with the WWE comparison is that they have feature content every week. You're talking about having feature content for 3 or 4 months, and again it's the low end of feature content.

5) There is a lot, a lot, more overhead than you anticipate. If you broadcast game, that means you have to completely produce it yourself. You have to pay the announcers, cameramen, producers, technicians, equipment, studios all off the top. That's a lot of money. Way more than the $20 million you are talking about.

The reason BTN & SECN don't have that problem is because they partnered with Fox and ESPN. Those networks already have the equipment and personnel on hand. They are essentially taking games they would normally televise anyway, and just putting them on a specialty network. As such, there isn't really as much overhead cost as if a conference has to do it from scratch, like the Pac 12.

6) Let's just take a little common sense look at it. SECN paid out about $5.5 million this year. BTN paid out about $7.5 million last year. You are projecting $20 million. You really think the SEC and Big Ten are going to leave $10-15 million on the table every year? If there really was that much money in a streaming network, then those leagues would be in on it. Especially the SEC, since they just started a network last year.
 
Some great info in this thread, appreciate it. When you ask yourself what is wrong with the Big 12 you don't have to go go beyond the fact that Texas has their own network and it's hurting out chances of adding one for the conference.
 
BIG 12 tier III contracts expire at different times. OU for example has a contract that expires in 2022.
WVUs expires in 2025. Iowa State I believe handles their own streaming/tv. as does TCU. Texas Tech's deal expires in 2016.

Everyone in the BIG 12 won't need to buy out tier 3 deals to create a future technology BIG 12 "network" of some sort. Who knows, it may be possible to somehow "pool" the separate deals to acquire more exposure and reach and more importantly more revenue.

If expansion happens, there is more BIG 12 content available than there is now which allows for more content on a BIG 12 network.
 
Everyone in the BIG 12 won't need to buy out tier 3 deals to create a future technology BIG 12 "network" of some sort

False. The only content available for a network is Tier 2 & 3. Tier 1 content, by definition, is the first-choice content broadcasted by the regular networks (Fox & ESPN). Fox and ESPN hold both the Tier 1 & 2 rights for the Big 12. The only available content for a B12N would be Tier 3.

That could change somewhat if the Big 12 created a network with either ESPN or Fox (like the Big Ten and SEC have done). However, you have some problems there that since Tier 2 content is split between the two, so only half of that content would be available. That means you would only have 1/2 of Tier 2, so you would need Tier 3 to fill in the gaps.

The other problem is that there isn't going to be enough interest in a network if it doesn't include the big guns (i.e Texas and Oklahoma).
 
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