Costliest college network in the country has lost millions

[jostar1]

Five years ago, ESPN signed a 20-year, $295 million contract with the University of Texas, broke ground on the swanky studio, and agreed to absorb LHN production costs pegged at an estimated $26 million a year, the contract details state.

But five years into the deal the Longhorn Network is under as much scrutiny as ever.

Though LHN was a financial windfall for the university, the network has lost money for five consecutive years, according to a financial study this year by SNL Kagan. (ESPN is owned jointly by the Walt Disney Co., a public company that has an 80 percent stake, and privately owned Hearst, the owner of the San Antonio Express-News.)

The Kagan study says LHN was “on the verge of being a bust” because of its early lack of full distribution by cable and satellite providers but was rescued when DIRECTV signed on last year, bringing in an estimated 1.8 million new subscribers within the LHN footprint of Texas, Louisiana, Oklahoma and New Mexico. That grew LHN’s reach to some 7.5 million subscribers, according to Kagan. So, despite a losing football team, Kagan projects the network will achieve its first profit in 2016, at roughly $2 million on net revenue of $32 million.

http://www.expressnews.com/news/loc...721906.php?t=1f7d003bb4&cmpid=twitter-premium

 

[brasssbonanzaa]

I had a sports package with my cable last year that got LHN, the few shows I watched on it were absolute snoozefests, even if I was a UT fan. Why anyone thought a 24-hour network for Texas was good is beyond me. It's not like a YES or SNY who have 150+ games a year baked into their schedule and have the ability to broadcast other pro teams. LHN gets two or three garbage football games a year, some leftover basketball games, and nothing else of any value. This was a horrendous idea.

 

[Dooley]

I have never watched the LHN. Nor would I ever have any reason to watch the LHN. But if the only way I could see UConn in a UConn v Texas game of some kind is by watching the LHN, guess who is subscribing to the LHN? *two thumbs* This guy!

 

[uconnfan68]

I had a sports package with my cable last year that got LHN, the few shows I watched on it were absolute snoozefests, even if I was a UT fan. Why anyone thought a 24-hour network for Texas was good is beyond me. It's not like a YES or SNY who have 150+ games a year baked into their schedule and have the ability to broadcast other pro teams. LHN gets two or three garbage football games a year, some leftover basketball games, and nothing else of any value. This was a horrendous idea.

But, but TEXAS!!!

 

[NYUConn]

The failures of the LHN though paved the way for the success of the SEC Network. ESPN learned from their mistakes pretty well.

So, silver liming?