Longhorn Network: ESPN's big money loser

Looks like the Aggies were right. Not all networks are the same.

Sports media giant ESPN Inc. has lost $48 million on the University of Texas-focused Longhorn Network.
The network has lost money for five straight years, according to a San Antonio Express-News story based on data compiled by media research firm SNL Kagan. ESPN and UT announced their 20-year, $295-million deal in January 2011.
A media research firm said the Longhorn Network nearly folded until DIRECTV signed on last year, adding an estimated 1.8 million new subscribers in Texas, Louisiana, Oklahoma and New Mexico and upping the network's total reach to 7.5 million subscribers.
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A media research firm said the Longhorn Network nearly folded until DIRECTV signed on… more

Kagan said LHN nearly folded until DIRECTV signed on last year, adding an estimated 1.8 million new subscribers in Texas, Louisiana, Oklahoma and New Mexico and upping the network's total reach to 7.5 million subscribers.
ESPN disputed Kagan's numbers, claiming the Longhorn Network has 20 million subscribers.

Kagan expects the network to reach profitability in 2016: roughly $2 million on net revenue of $32 million.
Kagan attributed the network's struggles to a number of factors, including on-field struggles for the university's teams in two marquee sports: football and men's basketball. Since the deal was signed, both teams have struggled to attain national relevance and changed their head coaches.


Will Anderson coordinates digital coverage of business news.


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