This example doesn't work. The B10 is asking for $1.10 within the Big 10 states (and only 10 cents elsewhere). They've also said they'd be happy on a digital tier outside of the Big 10 states. No cable subscriber will ever be hit with $1.10 for 7 or 8 different conference channels -- maybe for the primary conference in their region, but not for multiple conferences. I view the B10 Net as no different than a Regional Sports Network for the midwest. And it's being offered for about 1/3 of what most RSN's charge.
Good point. A quick look of just BCS conferences indicates that some people may be hit for three $1.10 fees, since they have 3 teams in their state from different conferences. But most people would be hit with just one or two $1.10 fees. Of course everyone would be hit with the $0.10 fees for the remaining conferences.
But it could get even worse, if minor conferences get into the mix, even if they keep their channels just regional.
So let's say the Big East follows the Big Ten model, and charges $1.10 in states where they have a FB/BB school, $0.50 where they have a BB-only school and $0.10 where they don't have any school. The Atlantic 10 and MAC follow suit and charges $0.50. So someone living in Cincinnati or Philadelphia is now paying $1.10 for the B10 and BE, plus $0.50 for the A10 and MAC, plus $0.10 for the SEC, ACC, P10, and B12, for an extra $3.60 per month for stuff they used to get for free. In Florida, the total would be $4.60.
(Actually, as I run the numbers, as a Big East basketball fan in New Jersey, I hope the B10 is successful with the model and that the BE partners with ESPN to do the same thing. Although I can already watch every single BE conference BB game at no additional charge on TV or ESPN360, I would only get hit with $1.10 extra and the revenue for the Big East would be huge. In fact, the BE could lower the rate to $0.80 for football states and still bring in the same revenue at the Big Ten. And the incentive for ESPN is there since they already have cameras at all the games anyway.)