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110%er [6781]
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Orange Blooded [4947]
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Re: If all goes well, Clemson's revenue gap will be all but
Aug 23, 2018, 10:38 AM
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No way the ACC gets the same subscription rates or if it does will get the same package benefits as the SEC. ESPN over estimated the market for the SEC network and years later that market has only gotten smaller from cord cutters. The network will shrink the gap but I expect to be underwhelmed when comparing the two deals.
The good news/hope is that the distributed model used by the ACC will help in the future market. As cord cutters increase the ACC will be in a position to provide content digitally and by school.
Another note is the ACC networks value in terms of Basketball. Sure it is not the revenue sport that football is, but the number of games made available that people care about dwarfs the SEC. Hopefully this was leveraged in negotiations with providers.
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Hall of Famer [23100]
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You hit on a good point
Aug 23, 2018, 10:48 AM
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The ACC Network will be driven by Basketball not 3rd tier football games,like every other Conference Network.
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Varsity [224]
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Re: If all goes well, Clemson's revenue gap will be all but
Aug 23, 2018, 11:50 AM
[ in reply to Re: If all goes well, Clemson's revenue gap will be all but ] |
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I'm curious what you think: just looking at the state of South Carolina, what rate do you think the ACCN will get? I don't see how it gets any less than the SECN (and obviously the ACCN should get more in NC and VA). I believe the combination of FSU and Miami guarantees equal rates in FL as well, but I'm not so sure about GA - unless Clemson and FSU fans living there really demand the ACCN. The wildcards in my mind are the Northeast, where ACCN already has a contract with Altice, and the Deep South, where SEC fans may (or may not) push back. THOUGHTS?
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Orange Blooded [4947]
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Re: If all goes well, Clemson's revenue gap will be all but
Aug 23, 2018, 12:20 PM
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The issue is not the rate when compared to the SEC in a specific market, but the rate compared to the overall demand as seen with the roll out of the SEC network. ESPN agreed to terms with the SEC and then struggled to get agreements with the major providers. They even reached short term deals in the final months to keep from falling short of promises made with the SEC. I haven't seen numbers but my guess is ESPN's revenue is falling well short of projections as the network is moved to higher tiers in provider models.
If the ACC struck a deal at the same time as the SEC then I agree with your state by state assessment, but the ACC comes to the table much later and with data proving the demand for a conference specific network is not as high as projected. Thus providers will not maintain it at a lower tier at that rate. So you either reduce the rate or move to a higher tier and reduce the overall viewers. I expect them to stay on the same tier as the SEC and take a lower rate.
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Asst Coach [721]
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Assuming any of that is remotely correct
Aug 23, 2018, 12:03 PM
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The SEC made a HUGE profit by adding aTm.
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Varsity [224]
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Re: Assuming any of that is remotely correct
Aug 23, 2018, 3:20 PM
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The SEC made a HUGE profit by adding aTm.
Which is why any future ACC expansion will EITHER include a team(s) from Texas, OR it will be Notre Dame all-in PLUS a "content multiplier" that increases demand in the East - like West Virginia.
JMO though
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