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re: SEC Network, the thread
Posted on 5/30/14 at 11:28 am to tmc94
Posted on 5/30/14 at 11:28 am to tmc94
quote:
How much is the network going to be worth to each school?
It’s hard to count that high.
Based on the rate within SEC states alone, if you multiply $1.30 times 12 months times the estimated 30 million subscribers in that footprint, you get $468 million. That would be $33.4 million per school — per year. And that’s without counting advertising revenue or subscribers from non-SEC states. Factor that in, and the SEC Network could easily be worth $500 million per year or $35.7 million per school once full distribution is achieved.
This part is misleading, as it assumes that all revenue is profit, and that ESPN gets no cut in the profits.
...though I do think he's underestimating advertising revenue.
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