1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Sports networks ranked by estimated value

Discussion in 'Colorado Football Message Board' started by hokiehead, May 7, 2015.

  1. hokiehead

    hokiehead Gobbler on the Mountain Club Member

    Joined:
    Apr 17, 2013
    Messages:
    4,324
    Likes Received:
    1,051
    foxsports link

    first observation is that even though ESPN has lost some luster, if you through those figures in a Pareto chart, ESPN still reigns supreme.

    Pac fans bitch about low distro of the P12 network, but this conference network thing is a sore spot for us ACC guys -- and a constant source of criticism against our commish.

    figure y'all might appreciate the absence of one Longhorn Network from the list.

    Edit: debated which forum to put this on and initially decided Junction's Pub, but upon scanning topics, it seems more conventional to put "sports topics that have some relevance to college football" over here.
     
  2. 89BUFF89

    89BUFF89 Well-Known Member

    Joined:
    Nov 5, 2009
    Messages:
    1,525
    Likes Received:
    144
    any time you are lower than something NHL you are in trouble....
     
    hokiehead likes this.
  3. Buffs35

    Buffs35 Well-Known Member

    Joined:
    Jan 13, 2010
    Messages:
    254
    Likes Received:
    178
    Waiting for someone to say that the numbers aren't as bad as they appear because the Pac-12 doesn't share revenue with a broadcaster. Rolling my eyes in advance. Even with sharing revenue, no way SEC or Big 10 get less net revenue that the Pac-12.

    Not getting on DirecTV has killed potential revenue. Scott could have signed a bad 5 year deal and now would be renegotiating the contract.

    I like what he did bringing CU and Utah to the Pac-12, but if the merger doesn't result in the network getting on DirecTV this year, due to (i) his lack of leadership regarding how bad Pac-12 officiating is, (ii) the fact he couldn't get the Pac-12 BBall Championship game on a broadcast channel - it was on FS1, and (iii) people in Egypt and China having better access to the network than the average American, I think Pac-12 schools should seriously consider replacing him with a person who knows how to get the important issues accomplished. I can appreciate what he has done this far, but it looks like he has peaked.
     
    OrangeBowl likes this.
  4. Darth Snow

    Darth Snow Hawaiian Buffalo Club Member Junta Member

    Joined:
    Feb 1, 2008
    Messages:
    56,968
    Likes Received:
    4,979
    I love how people don't understand the math behind the DTV issue.
     
  5. Clean Undies

    Clean Undies Flagship of the 12-Pac Club Member

    Joined:
    Jun 3, 2007
    Messages:
    27,301
    Likes Received:
    5,994
    Maybe the Golf Channel should buy the P12N. Problem solved.
     
  6. Tatanka™

    Tatanka™ Well-Known Member

    Joined:
    Jun 21, 2010
    Messages:
    818
    Likes Received:
    741
    The PAC-12 Network should just give the cable and satellite companies the bird and follow HBO NOW's example. Make the full broadcast experience available to all via Apple TV, Roku, Playstation, xbox, web browser, etc. without a cable subscription. It is the future. Show some bold leadership and embrace streaming now.
     
  7. buffaholic

    buffaholic Club Member Club Member

    Joined:
    Oct 5, 2008
    Messages:
    10,201
    Likes Received:
    1,636
    How about you just view those figures.... and skip the pareto chart you enginerd! You don't have to Pareto those figures to see how dominant ESPiN is! That's a classic and made only funnier that your handle is HokieHead. Digital High Five on that one 0101
     
    Last edited: May 8, 2015
  8. Hugegroove

    Hugegroove Club Member Club Member

    Joined:
    Jul 2, 2008
    Messages:
    2,727
    Likes Received:
    121
    Whether or not Scott & DTV come to terms, I can see the P-12 network gaining some steam over time. There was lots of representation in bowl games, basketball, etc; including high draft picks in the nfl. Since the B-12 has only a streaming network, might be the reason they weren't on the list?
     
  9. CUBUFF80

    CUBUFF80 No Stinkin' Title Club Member

    Joined:
    Jul 8, 2005
    Messages:
    11,896
    Likes Received:
    834
    Longhorn Network?
     
  10. Daaah

    Daaah Club Member Club Member

    Joined:
    Sep 28, 2007
    Messages:
    17,475
    Likes Received:
    1,063
    The problem with that is that then the games are not available at ANY bars.
     
  11. Clean Undies

    Clean Undies Flagship of the 12-Pac Club Member

    Joined:
    Jun 3, 2007
    Messages:
    27,301
    Likes Received:
    5,994
    That's one problem.

    The other problem is an assumption that ROKU or Netflix or P12N would sell over-the-top at an affordable rate like $5.99. The economics might look more like a PPV boxing match with 80-$100 per game or more.
     
  12. onealcd

    onealcd Club Member Club Member

    Joined:
    Aug 9, 2013
    Messages:
    5,636
    Likes Received:
    1,505
    Compared to the first year of the Pac-12, it seems to me that more and more bars are purchasing cable for that reason. I think Fox and Hound and BWW in Highlands ranch have it. Obviously outside of the footprint is another story.
     
  13. BlackNGold

    BlackNGold Club Member Club Member

    Joined:
    Jul 8, 2005
    Messages:
    4,505
    Likes Received:
    609
    Wrong model...HBO is not deserting the carriers they are looking for an augmentation to get to the cable cutters.

    How much will people pay and how many will pay? Not much and not many is the answer.
     
  14. AllStarBuffs

    AllStarBuffs Well-Known Member

    Joined:
    Sep 18, 2009
    Messages:
    334
    Likes Received:
    46
    What qualifies as a paying user? I have comcast and don't pay extra for the Pac-12 or SEC networks.
     
  15. onealcd

    onealcd Club Member Club Member

    Joined:
    Aug 9, 2013
    Messages:
    5,636
    Likes Received:
    1,505
    You pay for the extended package that gets you the Pac-12 right?
     
  16. SuperiorBuff

    SuperiorBuff Well-Known Member

    Joined:
    Jul 11, 2005
    Messages:
    12,765
    Likes Received:
    1,126
    No, it comes with my basic package.
     
  17. Highlander

    Highlander Club Member Club Member

    Joined:
    Nov 26, 2011
    Messages:
    6,324
    Likes Received:
    1,568
    The $0.66/subscriber is part of your fee from your basic package.
     
  18. Tatanka™

    Tatanka™ Well-Known Member

    Joined:
    Jun 21, 2010
    Messages:
    818
    Likes Received:
    741
    It's absolutely the right model. The cable companies most certainly view HBO's moves as giving them the finger. It is the beginning of the end of their business models. The transition to a la carte and smaller streaming packages is going to be far swifter than most people think. You're going to see many more networks offering a full experience w/o the cable companies over the next two years. Once ESPN takes the plunge, everyone will follow suit. Traditional 100+ channel bundles will be a thing of the past. That will suit me just fine since there are only a dozen or so that I watch regularly. I'll be thrilled to not have to subsidize Lifetime or Disney or MTV.

    The Pac-12 can continue to make their content available to cable subscribers, but they should not be dependent upon them to deliver the full network experience to cord cutters and those who live outside the Pac-12 footprint.

    I freely admit I'm pulling these numbers out of my ass, but I'm going to speculate anyway. Hundreds of thousands of people fill Pac-12 stadiums every week. I think the majority of those people who are willing to shell out money for tickets would certainly be willing to shell out $8 a month for the Pac-12 network. Many more live in areas that can't get the Pac-12 Network from their cable provider. Most of those people already own a game console or streaming box. A $39 Roku Streaming Stick is no big deal for people to pick up if necessary. That goes for sports bars, as well.

    So let's say that the Pac-12 requires a yearly subscription so that people can't sign up just for football season. Let's say it's $96 per year, which works out to $8 per month. Let's conservatively say they get 350,000 streaming subscribers. These would be four types of subscribers:

    1. People who are currently cord cutters and would love to see their Pac-12 teams, but don't want to shell out $100/month for cable.
    2. People who cancel their cable/satellite subscriptions because they're fine with Netflix, Amazon Prime, Hulu, etc as long as they can still get their Pac-12 fix.
    3. People who downgrade to a cheaper basic cable package because they're only on the more expensive plan and/or paying for the regional sports network package in order to get the Pac-12.
    4. People/sports bars who can't get the Pac-12 through their provider and don't want to switch to Dish for whatever reason. (I used to be a Dish subscriber. Loved it for years but I cancelled when they wanted to charge me a boatload to come out and repair or replace their defective equipment that I was leasing. I'll never go back.)

    350,000 x $96 per year = $33,600,000. They'd also get 100% of the advertising revenue. These numbers I've pulled out of my ass certainly sound like a solid business plan to me.
     
    Last edited: May 8, 2015
  19. GoBeers

    GoBeers Club Member Club Member

    Joined:
    Sep 22, 2010
    Messages:
    226
    Likes Received:
    33
    Clay Travis' monkey math was off by 2x for the P12N. oops.

    He also confuses 'value' of a network with 'revenue' of a network. The value comes from essentially the sum of all future revenues minus all future expenses. On top of that, the P12N doesn't share profits like BTN (50%) and SECN (never seen the sharing agreement, butI doubt ESPN is giving them more than 50% since they have to move over content from their regular ESPN CFB contracts to populate SECN with programming that doesn't suck).
     
  20. GoBeers

    GoBeers Club Member Club Member

    Joined:
    Sep 22, 2010
    Messages:
    226
    Likes Received:
    33
    So the problem offering direct streaming is that it violates the agreement the P12N has with it's cable and satellite partners. They are paying the P12N extra money to essentially keep their customers from cutting the cord. If the P12N offers a la carte via the internet, the cable companies will not pay big $$$ to put P12N into EVERY household in market. So given that P12N revenue is ~105 million now, then a la carte direct over the internet subscriptions would have to total more than that. I would expect the cable companies would then put the P12N in the sports package which has like 10% (or fewer) subscribers compared to basic cable.
     

Share This Page