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Message: [QUOTE="CoastAtlantic, post: 3042006, member: 5174"] [USER=1323511196]Mark Kochenderfer‏ @MarkKochenderfe[/USER] [URL='https://twitter.com/MarkKochenderfe/status/1096770680740302849']4h4 hours ago[/URL] It’s not exposure if nobody’s watching. And it would appear from the Nielsens nobody is. The whole purpose of these tier 3 net worth was to harvest carriage fees in a carriage fee cable model system. Without being able to collect those fees they really don’t make sense. [USER=1014233833]Doug‏ @NebGradDubDub[/USER] [URL='https://twitter.com/NebGradDubDub/status/1096771928097021953']4h4 hours ago[/URL] Replying to [USER=1323511196]@MarkKochenderfe[/USER] [USER=1286343007]@flugempir[B]e[/B][/USER] and 4 others You realize digital subscriptions are the next pay per view? That the NFL is headed down the same path? The B10 is cutting edge and leading. Everyone else has been reacting and grabbing the cash without future investment. [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096772839548641281']4h4 hours ago[/URL] And of course there are people watching these other events. Not in the numbers which would be profitable on another network...but when you own half the network with zero debt..well..it’s not an albatross. [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096774868631199744']3h3 hours ago[/URL] The Big Money will always be in Tier 1 & 2 arena. Big Ten Conference current payouts are the following: Tier 1&2 = 33-34 mil BTN = 9 mil NCAA Tourny Credits+Bowls= 10-11 mil The 9 mil from BTN is pure profit...without touching other 3T items each school sells independently [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096776019929907200']3h3 hours ago[/URL] Because of cutting of cable & streaming not being as profitable...will BTN payouts remain flat? Sure. But at some point more fans of Big Ten & SEC...and possibly of Big 12 will pay premium prices for content they want in 3T. BTN is all set to accommodate. Investments been paid. [USER=1323511196]Mark Kochenderfer‏ @MarkKochenderfe[/USER] [URL='https://twitter.com/MarkKochenderfe/status/1096784460035563520']3h3 hours ago[/URL] I don’t think revenue will Remain flat. I think payments will decline for this stuff if you have to ask people to actively buy it. Because even hard-core fans can live without tier 3 content. The whole model for these stations was to harvest carriage fees. Without those fees ? [USER=1323511196]Mark Kochenderfer‏ @MarkKochenderfe[/USER] [URL='https://twitter.com/MarkKochenderfe/status/1096781815870906369']3h3 hours ago[/URL] Replying to [USER=1014233833]@NebGradDubDub[/USER] [USER=1286343007]@flugempire[/USER] and 4 others Agree on the NFL subscription service that’s already been proven by DIRECTV. But that is because the NFL is so unbelievably popular. College football Isn’t let alone tier 3 college stuff. Take away the carriage fees and it’s not economically viable. [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096783425648975877']3h3 hours ago[/URL] BTN had 60 million subscriptions in 2014. It now has 59 million and the subs are lot more diversed in nature because of the chord cutting. Big Ten fanbase is already starting to pay for higher services..such as BTN Plus. The Network is popular. [USER=1323511196]Mark Kochenderfer‏ @MarkKochenderfe[/USER] [URL='https://twitter.com/MarkKochenderfe/status/1096786811630821378']3h3 hours ago[/URL] The Nielsen ratings tell us it is not popular at all. In fact The numbers are so low that they don’t even register. How many of those 59 million subscribers would actually pay for that station? Since so few of them are watching it. [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096788233978032129']3h3 hours ago[/URL] Mark, What happened when Comcast threaten to pull BTN within Big Ten Country? The Big Ten fanbase rose up and told Comcast they will drop them if you drop BTN. You greatly underestimate the popularity of the Network. [USER=1323511196]Mark Kochenderfer‏ @MarkKochenderfe[/USER] [URL='https://twitter.com/MarkKochenderfe/status/1096788472654893056']3h3 hours ago[/URL] Numbers don’t lie. Not my opinion. [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096789195933265920']3h3 hours ago[/URL] Ownership doesn’t lie either. BTN does not produce ratings in public. Nielsen doesn’t have those numbers. Advertising are buying up slots on BTN..money is rolling in. BTN is not on some death bed. 49% Ownership makes it profitable. [USER=1323511196]Mark Kochenderfer‏ @MarkKochenderfe[/USER] [URL='https://twitter.com/MarkKochenderfe/status/1096790919527976960']2h2 hours ago[/URL] Sorry just have to agree to disagree. There’s nothing I see here that changes the fundamental economics that in a carriage fee free future this is viable. Of course the nature of the content could adapt and maybe enough carriage fees will still be around to make a go of it. ? [USER=1014233833]Doug‏ @NebGradDubDub[/USER] [URL='https://twitter.com/NebGradDubDub/status/1096800016851705857']2h2 hours ago[/URL] Replying to [USER=1323511196]@MarkKochenderfe[/USER] [USER=1286343007]@flugempire[/USER] and 4 others Because BTN is tier 1 in B10 states. That’s what the $ from adds are primarily generated from. Think your local regional MLB teams network. Look at the cash they bring in and what they are worth [USER=1323511196]Mark Kochenderfer‏ @MarkKochenderfe[/USER] [URL='https://twitter.com/MarkKochenderfe/status/1096791129469710338']2h2 hours ago[/URL] Replying to [USER=1323511196]@MarkKochenderfe[/USER] [USER=1286343007]@flugempire[/USER] and 5 others Let’s talk about the real money. How much do you think the tier 1 and tier 2 deals for the Big Ten in the SEC will be worth in a few years? That’s what really matters. [USER=1014233833]Doug‏ @NebGradDubDub[/USER] [URL='https://twitter.com/NebGradDubDub/status/1096798866253537280']2h2 hours ago[/URL] Much more than they are now. Live content is king, especially when it involves legendary teams and larger markets/fan bases [USER=1323511196]Mark Kochenderfer‏ @MarkKochenderfe[/USER] [URL='https://twitter.com/MarkKochenderfe/status/1096800437477539840']2h2 hours ago[/URL] It would have to be Worth a lot more than now.especially for the SEC CBS package which is grossly under valued. [USER=1014233833]Doug‏ @NebGradDubDub[/USER] [URL='https://twitter.com/NebGradDubDub/status/1096800958145880065']2h2 hours ago[/URL] You realize just last year the B10 was on a contract for tier 1 signed in 2006? [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096801872374059010']2h2 hours ago[/URL] Both SEC & Big Ten will receive good jumps in their next Tier 1&2 Media negotiations. FOX ratings have skyrocketed since they acquired 1/2 the package. FOX Sports President Mark Silverman just stepped down as BTN President. [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096802450391085056']2h2 hours ago[/URL] The Question is where does FOX focus on after Big Ten? It will be either PAC or Big 12. And it will be secondary focus after Big Ten...much like ACC is secondary after SEC for Disney/ESPN. PAC and/or Big 12 might need new distributor to step up..which might be a good thing. [USER=1323511196]Mark Kochenderfer‏ @MarkKochenderfe[/USER] [URL='https://twitter.com/MarkKochenderfe/status/1096812059885535232']1h1 hour ago[/URL] Replying to [USER=1286343007]@flugempire[/USER] [USER=1014233833]@NebGradDubDub[/USER] and 4 others Do you think the Big Ten will have a game of the week tier one package like the SEC does on CBS? It always seem kind a odd to me that they didn’t have that their ratings would seem to support it. [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096813855349583877']56m56 minutes ago[/URL] Big Ten has weekly games on ABC as part of their Disney deal. [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096772378141642752']4h4 hours ago[/URL] Replying to [USER=1323511196]@MarkKochenderfe[/USER] [USER=386000905]@theDudeofWV[/USER] and 4 others You can’t have a network and only put on live content for 6 months of the year. The Big Ten Network still is producing revenue above costs to the tune of 9 mil per school + 9 mil to B1G Conference with live content year round. [USER=1014233833]Doug‏ @NebGradDubDub[/USER] [URL='https://twitter.com/NebGradDubDub/status/1096774880484311040']4h4 hours ago[/URL] That revenue is also doubled since half goes to FOX [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096776440996159490']3h3 hours ago[/URL] True. It’s why FOX is all in on Big Ten. FOX paid a monster price for 1/2 package for Big Ten Tier 1&2. FOX put pressure on ESPN to follow suit and pay high price for 2nd half of Big Ten Tier 1&2. [USER=1014233833]Doug‏ @NebGradDubDub[/USER] [URL='https://twitter.com/NebGradDubDub/status/1096777948844228611']3h3 hours ago[/URL] The B10 owns its own network free and clear with controlling stake and did that while the cost was a fraction of what it is today to start one. No other league has that ownership and they can't afford to. P12 tried and is nearly bankrupt. [USER=1014233833]Doug‏ @NebGradDubDub[/USER] [URL='https://twitter.com/NebGradDubDub/status/1096778685749886976']3h3 hours ago[/URL] While everyone else will rely on Google, Amazon or Apple to sell its secondary and tertiary content in the future at reduced prices, BTN will be doing the same at double or triple the profit because they have no middleman needed to distribute that content. B10 is 10 years ahead. [USER=1286343007]Greg Flugaur‏ @flugempire[/USER] [URL='https://twitter.com/flugempire/status/1096780762504937472']3h3 hours ago[/URL] Its why when you check on Forbes lists of most valued Football Programs it’s dotted with Big Ten schools because of their slices of ownerships of BTN. Even with carriage fees going away Network is all paid by millions of dollars of investments from each school through the years. [USER=1323511196]Mark Kochenderfer‏ @MarkKochenderfe[/USER] [URL='https://twitter.com/MarkKochenderfe/status/1096807908887707649']1h1 hour ago[/URL] Interesting to see where this goes. I would agree with you about the conferences and TV stations. There’s only so many prime windows in a college football Saturday. I guess that is why the Pac 12 consistently relegated to that 1015 slot. [/QUOTE]

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