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re: Our favorite lunatic is at it again
Posted on 7/22/14 at 2:03 pm to TeLeFaWx
Posted on 7/22/14 at 2:03 pm to TeLeFaWx
What I really love is the logic:
Without A&M, the SEC only gets $25 million from Texas because it is an out of market area.
Out of market areas only get $0.25 a subscriber. (this and the above seem to assume a 2 million subscriber level, [50% to ESPN, 50% to SEC])
With A&M, the SEC gets ~$140 million from Texas because it is in-market.
In market areas get $1.40 per subscriber.
Duke: THE MATH JUST DOESNT ADD UP!!!!!!
Without A&M, the SEC only gets $25 million from Texas because it is an out of market area.
Out of market areas only get $0.25 a subscriber. (this and the above seem to assume a 2 million subscriber level, [50% to ESPN, 50% to SEC])
With A&M, the SEC gets ~$140 million from Texas because it is in-market.
In market areas get $1.40 per subscriber.
Duke: THE MATH JUST DOESNT ADD UP!!!!!!
This post was edited on 7/22/14 at 2:05 pm
1
Posted on 7/22/14 at 2:36 pm to cokebottleag
His logic is that there is no way the SEC Network model works that way even though that is how the B1G Network has operated since day one.
By his example, Rutgers is worth more than 99% of college football programs because it makes NYC cable providers pay in state rates. No way they agree to that, he says. But then we get news not only did they agree they agreed long before the deadline. Why? Because this business model is boilerplate now.
What everyone is missing is that unlike most of the channel on your dial, networks like the SECN and B1GN provide a VERY important benefit to cable providers- they prevent cord cutting.
There are thousands, maybe millions, of younger men in America who basically have cable for football. The best market in the US, men ages 20-35, becomes hooked and used to paying for cable but only if you give them access to the content they want.
Men in this group don't care about the reality TV, talent shows, or almost anything else driving television revenues these days. For this market, without sports you give them very little reason to pay the $100+ bill every month.
If you can keep all those men locked into a $100+ bill for $1.40 a month, you do it. Heck it is worth cutting that out the marketing budget to do it- no "campaign" will bring as much positive goodwill with the best demographic in America than having the best sports product you can have.
This is about the battleground of the future, and winning the hearts, minds and wallets of the next generation.
On the flip side, we don't know what exactly the SECN is getting. We know what they got for the instate rate, but we don't know if that is an average or a set amount for the region. We don't know if the SEC splits profits or revenues. We don't know how much the SEC office will keep. We don't know what ESPN is going to pay for Tier 2 games that don't drop to SECN (aka the ones on ESPN 1 and 2).
We don't know jack. No one will know jack until a year after when the universities release the numbers. Any chest beating or butthurt about money is premature. The chest beating should be about distribution, and how SEC fans won't suffer like Texas or PAC 12 fans have suffered.
By his example, Rutgers is worth more than 99% of college football programs because it makes NYC cable providers pay in state rates. No way they agree to that, he says. But then we get news not only did they agree they agreed long before the deadline. Why? Because this business model is boilerplate now.
What everyone is missing is that unlike most of the channel on your dial, networks like the SECN and B1GN provide a VERY important benefit to cable providers- they prevent cord cutting.
There are thousands, maybe millions, of younger men in America who basically have cable for football. The best market in the US, men ages 20-35, becomes hooked and used to paying for cable but only if you give them access to the content they want.
Men in this group don't care about the reality TV, talent shows, or almost anything else driving television revenues these days. For this market, without sports you give them very little reason to pay the $100+ bill every month.
If you can keep all those men locked into a $100+ bill for $1.40 a month, you do it. Heck it is worth cutting that out the marketing budget to do it- no "campaign" will bring as much positive goodwill with the best demographic in America than having the best sports product you can have.
This is about the battleground of the future, and winning the hearts, minds and wallets of the next generation.
On the flip side, we don't know what exactly the SECN is getting. We know what they got for the instate rate, but we don't know if that is an average or a set amount for the region. We don't know if the SEC splits profits or revenues. We don't know how much the SEC office will keep. We don't know what ESPN is going to pay for Tier 2 games that don't drop to SECN (aka the ones on ESPN 1 and 2).
We don't know jack. No one will know jack until a year after when the universities release the numbers. Any chest beating or butthurt about money is premature. The chest beating should be about distribution, and how SEC fans won't suffer like Texas or PAC 12 fans have suffered.
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