I flat disagree with that statement. The content of Pac 12 sports costs less on Pac 12 Network (for more content) than Root Sports (or any other west coast RSN charges). So if we pay 80 cents per sub for Pac 12 for the whole thing or $2.40 something on Root for a few games here and there? We have a LOT more content for lower cost. Basically Pac 12 can do the whole thing for a lot less than others and give us better access at the same time.
Fact remains that Pac 12 will probably be the last league owned channel. The grain is so difficult now with the fights Pac 12 is having that it is unlikely any other league will be able to muster wide distribution.
The comment in bold brings up a very interesting thought exercise.
Let’s say it is 80¢ per sub. If DIRECTV is paying 80¢ per sub then the sub is paying 80+¢.
The question I find myself asking is this a reasonable cost for a single RSN and is it also reasonable to expect that other content providers won’t expect that they can get similarly priced carriage agreements in future?
Personally, I think costs per channel per subscriber are in danger of getting out of hand. e.g. If we have 100 channels averaging 75¢ per sub that’s $75/mo per subscriber to carry those channels.
I believe that with people using DVRs and functions like AutoHop we can expect it’s going to be difficult for broadcasters to maintain ad revenues. Once high carriage deals become the norm, it will be one way for broadcasters to recoup some of that missing ad money further driving up our monthly bills. IMHO, the PAC-12 carriage deal is the line in the sand only beacuse it came at a time when the line needed to be drawn and unfortunately the PAC-12 fans are caught in the middle.
My 2¢ FWIW.
Since it costs 1.66¢ to produce a penny, my 2¢ worth is really 3.32¢ worth. That 3.32¢ is my own and not the 3.32¢ of DIRECTV, Dish, or anyone else for that matter.