SEC Network already has more subscribers AND charges higher monthly prices than Big Ten Network

[Alsacs]

http://www.nasdaq.com/article/sec-n...r-schools-higher-bills-for-consumers-cm378545
http://www.nasdaq.com/article/sec-n...r-schools-higher-bills-for-consumers-cm378545
BTN is owned 51% by the B1G schools and 49% by FOX/News Corp.
SEC Network is 100% owned by ESPN and profits are split 50-50 by the SEC and ESPN/Disney

The Big Ten's reign as the most financially dominant conference days are numbered. Those numbers ESPN is getting SportsBusiness Daily reports that a monthly rate of $1.30 per subscriber is likely for in-conference providers. The fee is $0.25 in the 39 non-SEC states. Comcast, which reached a long-term deal with the network last month, is paying a slightly higher cost of $1.40 per subscriber, the outlet adds.


That rate is about 40% more expensive than what the Big Ten and Pac-12 networks charge, indicating ESPN and the SEC appear to be leveraging the conference's popularity.

If the ACC can get its stuff together with basketball, and other Olympic sports it could make a lot of bank with ESPN flexing its muscles like they have the SEC. Its funny how BTN has had to work its a$$ to be as good as it has been, and SEC/ESPN have just blown it out of the water.

 

[retro44]

I had read that the big 10 got $ 0.10 for NYC and $ 1.00 for parts of N.J. but only on premium packages and not the basic cable.

 

[HtownOrange]

This means we should all be on "Arb Watch". He will have info soon enough and you now that this will be discussed at the ACC!

 

[retro44]

does the big pay 51% of the production costs and does ESPN pay all the production costs of the SEC and then split the profits. ESPN could very easily inflate their costs under that scenario.

You really have to look at the two contracts to see the difference in them.

I know the state of N.J. wanted to attack the ever rising costs to cable bills mainly dealing with ESPN a few short years ago.

 

[Alsacs]

BTN is profitable now and the B1G has paid back FOX for the startup production costs but still FOX gets 49% of the profits.

With he SEC network ESPN is paying all production costs and then whatever profits they gross are split 50/50 with the SEC.

The Big Ten teams actually own 51% of the BTN which is valuable but the SEC doesn't own the SEC network so they are stuck with ESPN which isn't bad thing.

The SEC will become more profitable than the B1G real soon. If the ACC can keep its football going upward an ACC network would be profitable like the SEC but for a little less amount.

 

[Madbiker]

It's not called the World Wide Leader for nothing. Plus let's face it, when it comes to college football the SEC is a much better product.

 

[Lou_C]

http://www.nasdaq.com/article/sec-n...r-schools-higher-bills-for-consumers-cm378545
BTN is owned 51% by the B1G schools and 49% by FOX/News Corp.
SEC Network is 100% owned by ESPN and profits are split 50-50 by the SEC and ESPN/Disney

The Big Ten's reign as the most financially dominant conference days are numbered. Those numbers ESPN is getting SportsBusiness Daily reports that a monthly rate of $1.30 per subscriber is likely for in-conference providers. The fee is $0.25 in the 39 non-SEC states. Comcast, which reached a long-term deal with the network last month, is paying a slightly higher cost of $1.40 per subscriber, the outlet adds.


That rate is about 40% more expensive than what the Big Ten and Pac-12 networks charge, indicating ESPN and the SEC appear to be leveraging the conference's popularity.

If the ACC can get its stuff together with basketball, and other Olympic sports it could make a lot of bank with ESPN flexing its muscles like they have the SEC. Its funny how BTN has had to work its a$$ to be as good as it has been, and SEC/ESPN have just blown it out of the water.

Don't get me wrong, the SEC network is off to a phenomenal start, the most successful of any cable start-up I've seen in my life.

But let's keep the powder dry on some of those revenue estimates. When they say "according to Fox", that's quoting Clay Travis. His calculations have not been confirmed officially.

I for one don't necessarily believe that a 50/50 split is very likely.

That means that ESPN, after accounting for expenses, is giving the SEC the lion's share.

Keep in mind...the SEC wasn't a free agent, able to work out it's best deal with anybody. They were bound to a long term contract with ESPN...they had almost no leverage. My guess is that the terms are not nearly so favorable to the SEC.

Don't get me wrong...the SEC is going to make serious cash off this...probably $10-15M a year per school right off the jump. But $30M a year, just for the network? That seems pretty absurd. The B1G is just now distributing $10M. It's hard to imagine ESPN cutting the SEC a deal that gives them triple the market value of the established leader in the market. They just wouldn't have to...the SEC couldn't do a thing about it. I imagine they guaranteed them $X per school, with a certain amount of profit sharing after a certain point, similar to the LHN.

I could be wrong, but I just don't see that you can make some of the assumptions Clay Travis is making.

 

[Hoo's That]

I had read that the big 10 got $ 0.10 for NYC and $ 1.00 for parts of N.J. but only on premium packages and not the basic cable.

The dime from NYC is what they were getting before; the $1 from NJ is new and in line with the structure in other B1G states. Comcast has dug in its heels about leaving it on premium tier despite what the B1G wants.

As an FYI, RCN in the DC Metro area will have the SEC Network on its premium sports tier starting in Sept. The BTN was there before the UMd announcement and I believe it will stay there.

 

[Alsacs]

Don't get me wrong, the SEC network is off to a phenomenal start, the most successful of any cable start-up I've seen in my life.

But let's keep the powder dry on some of those revenue estimates. When they say "according to Fox", that's quoting Clay Travis. His calculations have not been confirmed officially.

I for one don't necessarily believe that a 50/50 split is very likely.

That means that ESPN, after accounting for expenses, is giving the SEC the lion's share.

Keep in mind...the SEC wasn't a free agent, able to work out it's best deal with anybody. They were bound to a long term contract with ESPN...they had almost no leverage. My guess is that the terms are not nearly so favorable to the SEC.

Don't get me wrong...the SEC is going to make serious cash off this...probably $10-15M a year per school right off the jump. But $30M a year, just for the network? That seems pretty absurd. The B1G is just now distributing $10M. It's hard to imagine ESPN cutting the SEC a deal that gives them triple the market value of the established leader in the market. They just wouldn't have to...the SEC couldn't do a thing about it. I imagine they guaranteed them $X per school, with a certain amount of profit sharing after a certain point, similar to the LHN.

I could be wrong, but I just don't see that you can make some of the assumptions Clay Travis is making.

Even if they don't get the Clay Travis numbers and I never believe a word that guy says they will still get more money than the Big Ten and that is because ESPN/Disney was able to bundle SECN into 89 million cable/satellite homes right off the bat and BTN had to work its News Corp/FOX connections to get started off.

The 50/50 split has been stated numerous times. ESPN will receive 50% of the profits after production costs and the SEC will divide up the other 50%. The SEC did this instead of asking ESPN for partial ownership of the network. This deal keeps the SEC tied at the hip with ESPN while the BTN is owned 51% by the 14 Big Ten schools and office. Nebraska, Rutgers, Maryland have to receive less than full shares until they pay their fellow B1G partners the amount of money it takes to pay their portion of ownership in BTN. Thus, in the future while News Corp owns 49% of the BTN the B1G conferences isn't tied at the hop like SEC is with ESPN and the SECN. If the B1G tried to screw FOX all News Corp would do is stop helping with the bundling BTN with its others stations, but I doubt this would ever happen.

 

[OrangeXtreme]

Ch 384 on Time Warner in Syracuse.

 

[Doctor44]

Yea unless its a free trial, its part of the time warner packages, but BTN is extra. Not sure what will happen with the comcast takeover of time warner in the future

 

[MSOrange]

It's kind of interesting to me how the different conferences have their networks set up. I get the Pac 12, Big 10 and now SEC networks here in KC - but I have to pay extra as part of the Sports Pass. But it's worth it to me because I enjoy watching Iowa plus NFL RedZone is part of the package also - need I say more on that.

The Big 10 has a main channel and two alternate channels but they show the same programming on all 3 except for on Saturdays during football season when they usually show different games at 11 am. Yes we have kickoffs at 11 am here in the Central time zone The SEC looks like they will have a main channel and an alternate channel that doesn't appear to be in use yet. I love the PAC 12 set up. They have a main Pac 12 Network and then separate channels for Oregon, Los Angeles, Arizona, Washington, Oregon, Mountain and Bay California which seem to always have different programming. The only problem is Time Warner doesn't offer any of them in HD but I still watch if there is a football or basketball game I want to watch (mainly Oregon football and Arizona basketball). I would love for the ACC to have this set up. Possibly a northern channel for us, Boston College, Pitt and Notre Dame, one channel for Louisville, Virginia, Virginia Tech, one for the 4 Carolina schools and one for GA Tech, Clemson, FSU and Miami. (I don't think I missed anyone)

 

[shantydaze]

Even if they don't get the Clay Travis numbers and I never believe a word that guy says they will still get more money than the Big Ten and that is because ESPN/Disney was able to bundle SECN into 89 million cable/satellite homes right off the bat and BTN had to work its News Corp/FOX connections to get started off.

The 50/50 split has been stated numerous times. ESPN will receive 50% of the profits after production costs and the SEC will divide up the other 50%. The SEC did this instead of asking ESPN for partial ownership of the network. This deal keeps the SEC tied at the hip with ESPN while the BTN is owned 51% by the 14 Big Ten schools and office. Nebraska, Rutgers, Maryland have to receive less than full shares until they pay their fellow B1G partners the amount of money it takes to pay their portion of ownership in BTN. Thus, in the future while News Corp owns 49% of the BTN the B1G conferences isn't tied at the hop like SEC is with ESPN and the SECN. If the B1G tried to screw FOX all News Corp would do is stop helping with the bundling BTN with its others stations, but I doubt this would ever happen.

While the B1G owned 51% of the BTN initially, the contract allowed Fox to purchase 2% and obtain 51%, which it did in 2010.

So now that the SEC Network has been launched, the most corrupt conference becomes the most profitable. Sounds about right.