Beyond the media rights issues are the usual hurdles for fledgling networks – gaining distribution and getting acceptable subscriber fees.
To date, the Big Ten Network is the only league-branded channel that has been profitable, although the early years were fraught with distribution problems.
A league can’t simply create a network and be done with it. It has to get cable providers to carry it. That means negotiating with such cable giants as Comcast and Time Warner, but also satellite providers such as DirecTV and Dish Network.
“Even with a partner as strong as ESPN, it takes a while to get distribution,” Berke said. “The University of Texas Longhorn Network is partnered with ESPN, and they still have yet to have full distribution in central Texas.”
Getting an acceptable carriage fee is part of the negotiation. Pilson estimated that college TV networks like the Big Ten earn anywhere from 75 cents to $1.10 per subscription in states that are in their footprint and far less (5 to 10 cents) in states outside that footprint.
Multiply that by the millions of homes and you can see why a network has the potential to be so lucrative. Finding a price the cable companies will pass on to their customers is tricky, however.
“If you get 100 percent distribution and 5 cents per channel, it’s not going to work,” Pilson said.
http://hamptonroads.com/2013/08/acc-weighs-pros-and-cons-starting-its-own-channel
To date, the Big Ten Network is the only league-branded channel that has been profitable, although the early years were fraught with distribution problems.
A league can’t simply create a network and be done with it. It has to get cable providers to carry it. That means negotiating with such cable giants as Comcast and Time Warner, but also satellite providers such as DirecTV and Dish Network.
“Even with a partner as strong as ESPN, it takes a while to get distribution,” Berke said. “The University of Texas Longhorn Network is partnered with ESPN, and they still have yet to have full distribution in central Texas.”
Getting an acceptable carriage fee is part of the negotiation. Pilson estimated that college TV networks like the Big Ten earn anywhere from 75 cents to $1.10 per subscription in states that are in their footprint and far less (5 to 10 cents) in states outside that footprint.
Multiply that by the millions of homes and you can see why a network has the potential to be so lucrative. Finding a price the cable companies will pass on to their customers is tricky, however.
“If you get 100 percent distribution and 5 cents per channel, it’s not going to work,” Pilson said.
http://hamptonroads.com/2013/08/acc-weighs-pros-and-cons-starting-its-own-channel
