"topdecktiger,Here are the numbers. Page 21. In the ACC footprint, there are 43.3 million homes with televisions. Of those, 38.4 million are "wired," meaning they have either cable or satellite. The figures you posted are only for cable households. It doesn't include satellite homes, who are also potential subscribers. The Big Ten, SEC, Pac 12, and LHN all have their channels available with satellite providers as well as cable. You have to count both.
http://s3.documentcloud.org/documents/1147299/maryland-acc-brief-exhibit-a.pdf
B: i see the problem. I am using current Neilsen numbers, and you are using numbers from prior to Maryland exiting the ACC which also included the state of Maryland and DC. Maryland is in the Big Ten. Pay tv has lost numbers since then. Lots of them. So has tv in general. As of January 2016 there were 37,861,070total tv households in ACC states. I am not going through and calculating all the satellite tvs subscribers in ACC "states". The numbers are lower than what you've reported as with everything else. The Pac hasn't been able to get deals with some satellite providers and with similar fan interest its doubtful the ACC would do much better there--in other words they would not strike deals with some of the major carriers.
You may want to keep up.
They would get some subscribers. Even the SEC doesn't have 100% subscriptions in every state. You can't assume that the ACC would get zero carriage in any one particular state or city. That's just your opinion not backed up by any facts. You can't use that as a defense of your position.
B: No one said the SEC has 100% subscriptions in every state--but their core states are solid for them and they get more than $1.00 per subscriber in those home states as well. Highly unlikely for the ACC to accomplish. NYC is hardly signing up for an ACC network because a small private school hrs. away in upstate NY is a member of the ACC. Philadelphia? There's no ACC school anywhere near Philadelphia and they aren't supporting Pittsburgh. The numbers you pretend exist are WAAY high.
I wasn't pegging on a $2 million figure. I was just showing you what it would add up to even if you took a lowball figure. For example, the SEC has 11 home states. They made $5 million per school. Divided by 11 states, that means the SEC schools average $455,000 per state. Yet you are trying to say $600,000 would be bad. That was my point.
B: I'm saying what the ACC is likely to get compared to the BTN or SECN is minimal--the numbers you want to claim are in the ACC fold are overstated and misleading.
Actually no, the SEC network went on the air before August of 2014. They just showed the first football game in August. Even with that said, it's hilarious that you would act like 3 months proves your point. It proves my point. The SEC didn't buy back Tier 3 rights until 2013, and the network started in 2014. That's not "well over" a year.
B: The SEC announced a network was happening prior to a year out, negotiated for rights back prior to a year out from launch, expanded for content prior to a year out. Your spin just paints you as dishonest or worse. The ACC hasn't announced a network is coming in 2016 or 17, they've continually changed the timeframe for a network as it hasn't materialized and have talked about it for years. Stop pretending the ACC is on the verge of a network and its always been planned that way. No one is in process of buying back rights or inventory at this point in time and no network is definitive--whereas in the SEC it was by this point in time.
I didn't ignore it. You are just splitting hair because it wasn't literally12 exact months. The rights weren't repurchased until 2013, and the network went on air in 2014. The ACC was looking at 2017 as the original launch date. It's now been pushed back, so that's at least 2018. So, if we go by the SEC timeline, then the ACC wouldn't be due to buy back the rights until April of 2017 in the first place.
B: Initially the ACC announced a network being investigated prior to 2010 when it signed the tv deal prior to the current one
excerpt:
Commissioner John Swofford said the league did its "due diligence" by researching the issue, but said the ACC opted to avoid the upfront startup costs and the financial risk in favor of utilizing ESPN's in-place broadcast and multimedia outlets.
so please, stop with the "2017 was always the launch date" b.s. The ACC has discussed a network on and off for years.
And if the ACC were going to be buying back rights they would be negotiating now for those rights. That isn't happening now.
And that's because the network was launching the next year. We already know the ACC isn't launching a network next year, therefore no reason to buy back the rights beforehand.
B: You don't just buy back rights because you want to, they must be negotiated for first, and there's no mandate that they are bought back one year before launch of a network. That is pure b.s. from you trying to excuse the lack of any real movement and you know it.
Nope, not what I said. ESPN would still get a subscription fee to the regular channels even if they didn't have any ACC content. For example, ESPN itself gets $7.00 per subscriber. If they didn't have a single ACC game, ESPN would still get $7.00 per subscriber from its main channel.
B: ESPN gets subscription fees--you said just above they get $0 now, but would from the ACC. Everyone can read what you wrote. Part of the reason ESPN gets a subscriber rate is because of the content on their networks. Owning and showing ACC content is a part of that. The point is ESPN already bought the ACCs rights. They aren't paying for them a second time.
#4 does not happen. This is your lack of understanding of how the contracts work. Subscription fees and rights fees are completely different things. ESPN would not be paying the ACC twice for the rights fees. If ESPN and the ACC split the revenue from a network
that's only subscription fees. Texas does the same thing with the LHN. IMG already owned all the Tier 3 rights for Texas. They pay about $10 million a year for those. However, IMG pays Texas
an additional $15 million from the LHN (via ESPN). That's not because IMG is "paying twice" for the rights. The $15 million is not for the rights. The $15 million is strictly from revenue generated from the LHN. That's completely different from the broadcast rights.
B: Your lack of understanding is the problem. AGAIN
I. ESPN bought ACC rights-meaning they own all rights--paid for
II. ESPN monetizes those rights by putting ACC content-all of that which they own on ESPN platforms
If they then create a new platform ESPN gets that money and has 0 incentive to give any of that revenue to the ACC.
Why? BECAUSE THEY ALREADY PAID THE ACC FOR IT ONCE--again they aren't paying the ACC twice for the same product.
Here's what you don't get. The $5 million each school got from the SECN was not for rights to those new games. That $5 million was
strictly from subscription revenue. The additional rights are paid out of the regular broadcast contract with ESPN. All the rights for the SEC (excluding the one CBS game) are in one big pot. ESPN pays for them in a lump sum every year. From the network, the SEC's payout doesn't have anything to do with the number of games.
B: Here's what you don't get. The subscription revenue SEC schools get is for NEW inventory that was not previously part of the inventory the SEC could offer ESPN. They added 40 plus football games and numerous basketball and olympic sports to their available inventory which allowed ESPN to continue putting on a certain amount of SEC product with no reduction, while also putting the new surplus on the SEC network.
Let's do it more graphically for the comprehensively challenged:
pre SEC network
Group A content:--SEC had the inventory of 12 teams minus tier 3 rights from each school
in order to create an SEC network the SEC added:
Group B content
--Two schools worth of inventory via expansion
--inventory from each existing schools tier 3 rights which were bought back
Combining Groups A and B allow the SEC to both have content on ESPN and CBS and now an SECN
Here is where you are going wrong. Prior to the network, the SEC's regular TV contract with ESPN paid out $20 million per team (average). Now, (after expansion) their contract pays out $25 million per team.
Additionally, they get $5 million from the SECN in subscription revenue.
B: I am not going wrong. After expansion the exact amount of the SECs tv deals have not been announced. You are confusing their "average" payout increase as their new contract numbers. With an average the number starts low, hits an average point and grows over time. They aren't getting $25 million per year from ESPN, they are getting an entire conference payout from two tv deals, conference playoff payout, NCAAs, an SEC CCG and other things in that number and then an additional amount from the SECN of around $5 million per school.
Now here is how it would work with the ACC. The ACC's contract with ESPN pays out about $18 million per school (average). IF, IF, the ACC got a network, they would still only get the same $18 million payout for the rights. Then they would get $__ million from subscription fees. You see the difference? The SEC got a boost to their contract
AND subscription fees from the network. The ACC would
only get a subscription fee from the network, but not a contract boost. That's because ESPN already owns the rights.
B: NO. Here is how it would work. If the ACC can reacquire rights from Raycom and FOX then they would have the inventory to have a network (without ND football or hockey). From there if they got a network they would get subscription fees while ESPN kept putting the same numbers on their current platforms as is contracted through 2027.
Now one other point about this. The ACC would have additional inventory. They would have the ~35 games that are currently syndicated with Fox and ESPN. (If they can't buy out the syndication packages, then the whole network is a moot point.) The difference is, they
would not get paid any extra for these 35 games, because they are already getting paid out of their regular contract, as I just showed. Again, that's the difference. The SEC got a contract boost
AND subscription fees. The ACC would
only get subscription fees.
B: We don't know if the SEC got a contract boost--it hasn't been announced. CBS did not increase the contract on their side and ESPN doesn't appear to have by much. However they also added TWO SCHOOLS. The ACC hasn't expanded so has the same inventory. As I stated and you denied multiple times until now, they would have to get back Raycom and FOX inventory to create the network or its a moot point.
Incorrect. There are 133 million homes in the U.S. The SEC is in roughly 69 million. That's barely 50%, not 69%. The thing is, the ACC doesn't have to get in that many homes. Nobody said they have to match the SEC. Here's how to look at it. The SEC makes $546 million a year in revenue. If the ACC only made half that, ESPN would clear $100 million a year, and that's taking into account operating costs and being generous and splitting 50/50 with the ACC. Now, would the ACC even make that much? I don't know. I'm just showing you that the bar is not nearly has high as you are claiming to make a network viable.[/QUOTE]
B: Incorrect. In 2016 there are only 100 million pay tv homes which means the SEC is in 69% of those homes. You need to get your numbers straight before challenging others. The problem for the ACC is not that they couldn't make money if they could get a network--its how much--how close can they get to Big Ten, SEC and BIG 12 numbers? Because money drives realignment and currently the ACC is at the bottom of rights fees per school. If other conferences are $15 or $20 million or more ahead by 2027 or close to it--look out.