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Pac-12 Networks confident, even without DirecTV

Discussion in 'DIRECTV Programming' started by Athlon646464, Jun 29, 2013.

  1. slice1900

    slice1900 Well-Known Member

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    Since Pac 12 doesn't want to reduce the price they offer Directv because it would require them to reduce the price they get from Comcast, Dish et al they can make it up in the terms they offer AT&T for the renewal.

    Then it is up to AT&T to decide if the money they make off an extension of the partnership makes up for the money they lose by carrying Pac 12 (obviously Directv has always felt Pac 12 would be a net loss for them or they would have agreed to carry it)

    The timing of this article could be better though, given that the Pac 12 just got shut out of the sweet 16 :)
     
    Laxguy likes this.
  2. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    Interesting, yes. Leverage on the part of PAC-12? Just hope they don't overplay their hand and get booted out of ATT altogether.
     
  3. nvsundevil

    nvsundevil Member

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    Can actually see this happening............because, in my opinion, Larry Scott & Co think the P12N is the best thing since peanut butter!
     
  4. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    The concept of it is good, but the execution was terrible, much of it due to the hubris of Scott. And the hypocrisy saying they were doing it to give all the athletes better exposure, a boon to their families and fans and alums of the constituents, when it really was a money grab. Booooo!
     
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  5. slice1900

    slice1900 Well-Known Member

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    Doesn't the current deal with AT&T involve more than sports, like campus connectivity and stuff like that? If so, Larry Scott won't be driving the negotiations...

    At least, I assume that as commissioner of the Pac 12 he only speaks for the sports side. Maybe the Pac 12 is different, but in the Big Ten Jim Delaney is only in charge of the conference, which is all about sports. The academic side of things (which still includes U of Chicago, since they dropped varsity sports decades ago) is the CIC. That's the body with the real power.
     
    Last edited: Mar 23, 2018
  6. BigJ52

    BigJ52 Godfather

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  7. inkahauts

    inkahauts Well-Known Member

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    When will they break down and restructure this? That’s the question...
     
  8. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    It seems that much of the reported decrease in "average per sub" is due to out of market carriage.

    "The network has increased from an estimated 12 million subscribers shortly after launch to an estimated 19 million subscribers last year, with many of those (4.5 million) coming from a fall 2016 deal with Dish that moved the national network from a sports tier to a more basic tier.
    "And many of those subscribers are out of market and paying an estimated $0.05 annual fee (lower than the network’s previous out-of-market rate), which lowers the annual averages the network is pulling in."

    Apparently Pac-12 has traded out of market pennies per subscriber to increase their subscriber count. I believe that Pac-12 would be willing to offer DIRECTV the same prices as DISH for the same tier carriage as DISH. But (as the article states) the in market prices have continued to rise. If the price was too salty for DIRECTV in 2011 it isn't any cheaper (in market) for AT&T|DIRECTV in 2018. And if Pac-12 reduced their in market rates to sign DIRECTV they would need to reduce their in market rates paid by DISH and other carriers. The same problem that the deal has faced for since the network launched.
     
  9. slice1900

    slice1900 Well-Known Member

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    These figures are estimates by SNL Kagan, they don't have access to the contracts. It seems unlikely it could have dropped that far just from adding 4.5 million subscribers, even if they were all 5 cents/month...the math just doesn't add up.

    But let's say their figures are correct. Even if Directv picked them up for all subscribers, if you assume 25 million subscribers averaging 11 cents a month, that's about $2.5 million/yr per team. That would be a nice bump over what they are getting now but hardly close the gap between the SEC & Big Ten. The Big Ten told its schools to expect around $50.8 million per school distributed by the league this fiscal year, the first of their new tier 1 contract.

    That's about $20 million more per school than the Pac 12. That kind of difference matters, especially for the smaller schools that don't get the level of donations to their athletic department that a USC or Oregon gets in the Pac 12, or OSU or Michigan do in the Big Ten. For instance Iowa's athletic department budget last year was just over $100 million, so the conference's revenue distribution this year will be almost half the total! Iowa, like many Big Ten schools, returns some of their athletic revenue to the school's general fund so scholarships and financial aid for ordinary students depend on that $20 million difference. Without it they'd run in the red like most Division I schools run their athletic department.

    The Pac 12 Network's poor performance probably doesn't help the conference's perception of value when it comes time for them to renew their Tier 1 contracts, so Larry Scott's folly is probably costing them more than the difference between what they make now and what they could have made if they had partnered with a network and got wider coverage and better leverage in negotiations.
     
  10. nvsundevil

    nvsundevil Member

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    APB101 likes this.
  11. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    "Some further clarification from Comcast media relations.

    The markets that will continue to receive BTN are Illinois, Indiana, Maryland, Michigan, Minnesota, New Jersey, Ohio, Pennsylvania and Wisconsin.

    States not on this list are considered out-of-market."
     
  12. JoeTheDragon

    JoeTheDragon Hall Of Fame

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    fox will find away to force Comcast to have it come back. even more so if Disney buys fox
     
  13. JoeTheDragon

    JoeTheDragon Hall Of Fame

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    Comcast has systems in Wisconsin?
     
  14. SamC

    SamC Hall Of Fame

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    Not according to the map published at the time of the attempted TWC merger.
     
  15. slice1900

    slice1900 Well-Known Member

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    I assume that means that BTN is no longer included in standard packages out of region, and you have to get the sports pak . They'd lose a lot of customers if they didn't offer a way to get it AT ALL out of region, since Big Ten alumni are the most geographically dispersed of any conference's.

    That's the same situation that already exists on Mediacom for SEC Network here in Iowa - it isn't included in standard packages, you need the sports pak to get it. I imagine in Mediacom areas in say Alabama it is the opposite and they get SEC Network but BTN requires sports pak.

    I assume renewal time rolled around for Comcast, they are asking more money for BTN and Comcast was looking to save money. I expect it will eventually be the norm that you have to get the sports pak if you want any conference network that's out of area.
     
    Last edited: Apr 16, 2018
  16. slice1900

    slice1900 Well-Known Member

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    The prospective Disney deal does not include FS1, and I assume would also not include BTN and Fox's sports networks. Disney/ESPN would have WAY too much control of sports if they had both SEC Network and a majority share of BTN, plus all those Fox sports net RSNs, in addition to ESPN itself. They know better than to shoot themselves in the foot trying a deal like that which would have zero chance of regulatory approval.
     
  17. KyL416

    KyL416 Hall Of Fame

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    I take it you didn't read the full announcement:
    The Walt Disney Company To Acquire Twenty-First Century Fox, Inc., After Spinoff Of Certain Businesses, For $52.4 Billion In Stock - The Walt Disney Company
    The deal has the "new" Fox keeping BTN, while Disney gets the RSNs.
     
  18. oriolesmagic

    oriolesmagic Member

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    Comcast has a system in Manitowoc, and a couple systems in the fringes of the Twin Cities in Wisconsin.

    If Comcast would have purchased TWC, these would have went to Charter along with all other systems in MN and WI.
     
  19. dishrich

    dishrich Hall Of Fame

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    It ALREADY is (only) in the "sports pak" OOM, & they are, TOTALLY removing it from all those OOM systems in May, & basically said "if those subs still want BTN, they're on their own":
    Re: [NEWS] Channels dropping from tiers - Comcast XFINITY TV | DSLReports Forums

    In-market subs will remain as-is...
     
  20. slice1900

    slice1900 Well-Known Member

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    I'd be surprised if that gets approved, given how much control over sports programming Disney already has.
     

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