re: SEC Network, the thread

Couple of notes about the SECN. If I have time I'll try to napkin out the financials but here's what we know

- The base fee they are after is $1.30 in-market and $0.25 out of market.

BTN Numbers ( LINK)
- $1.00 in market. The avg rate is $0.41
- approximately 52m subscribers, 20m in footprint.
- $0.05 out of market (calculated)
- $0.41 * 52m * 12 = $255m annually in subscriber fees
- The BTN distributed $8.1m per school last year @12 schools = 97.2m. The BTN owns 50% so the network made about $200m

ESPN has publicly targeted about 75m subscribers. But what we know so far - ATT and Dish have approximately 20m subscribers. But in both cases, SECN is on the basic tier meaning it's in every package so that 20m is actually 20m (not sure about Uverse but BTN is not on basic for Dish)

Assuming the rates are correct then and assuming a split of 7m in market and 13m out of market
- (7m * 1.3 + 13m * 0.25) * 12 = 148m

Obviously this ignores advertising and digital rates. Too early to say on that, but just assuming those match the BTN, the Dish deal has made the entire thing profitable on day one.

ETA: Some more BTN info
- Net advertising revenue also increased last year to $30.1 million (2011) LINK
- still unsure on the BTN2GO rights fees