The big increase proves the point that College Sports are under paid, B1G ratings as a whole are not better than double what the SEC ratings are.
As to what the BTN can charge in the areas you identify, are those solid numbers or just an example. I am not in the business, but I recall that the BTN was projecting at least $1/per customer and more than the rate I heard elsewhere (.30-.40 if I recall). Regardless, with less less customers forking over any rate, the return to BTN is less than bargained for (by your numbers at least 30% off the asking price and another 10% by cord cutters), thus my point still stands. Even if there was no difference in the rate (assume the BTN gets $1) a 10% decrease is still a decrease and one that will continue to grow.
If anyone has hard numbers of what NYC is paying the BTN, it would be interesting if you can share.