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<blockquote data-quote="Buckaineer" data-source="post: 129303023" data-attributes="member: 1428007"><p>It's a good idea and could be workable. There are probably a few issues though in that start up costs would likely be higher than $22 million per year. The Pac 12 is paying for their own network and own everything-cutting out the middle man. After three years they are only able to distribute about $1 million per school and only have about 11 million subscribers. SNL Kagan estimates that the Pac12Nets had $73.2 million in revenue and $72.7 million in expenses in 2014 according to the Mercury News. Also they believed to be reaching approximately half of all TV households in the league’s six-state footprint. Athletics are likely much more desirable by fans in BIG 12 country, but there are lots less people as you mentioned. Getting $10 per subscriber might be difficult for anyone but who knows maybe 5% would go for that. With the numbers you put out though it only equates to about $4 million per school and some schools already get more than that with tier 3 revenues on their own.</p><p></p><p>Another issue is that the LHN doesn't allow any competition. Not sure any of their content could be on such a network based on the LHN deal. You'd have to think with three other instate programs that fans in Texas might still subscribe, but probably not in the desired numbers.</p><p></p><p>Finally, since everyone has tier 3 deals that last different amounts of time, rights might have to be bought back to make that work. Who knows though--maybe there is some way to work out your idea with everyone retaining their own rights, but distributing them through this pay per view streaming site as well.</p><p></p><p>Expanding into new large markets could also help the bottom line perhaps.</p></blockquote><p></p>
[QUOTE="Buckaineer, post: 129303023, member: 1428007"] It's a good idea and could be workable. There are probably a few issues though in that start up costs would likely be higher than $22 million per year. The Pac 12 is paying for their own network and own everything-cutting out the middle man. After three years they are only able to distribute about $1 million per school and only have about 11 million subscribers. SNL Kagan estimates that the Pac12Nets had $73.2 million in revenue and $72.7 million in expenses in 2014 according to the Mercury News. Also they believed to be reaching approximately half of all TV households in the league’s six-state footprint. Athletics are likely much more desirable by fans in BIG 12 country, but there are lots less people as you mentioned. Getting $10 per subscriber might be difficult for anyone but who knows maybe 5% would go for that. With the numbers you put out though it only equates to about $4 million per school and some schools already get more than that with tier 3 revenues on their own. Another issue is that the LHN doesn't allow any competition. Not sure any of their content could be on such a network based on the LHN deal. You'd have to think with three other instate programs that fans in Texas might still subscribe, but probably not in the desired numbers. Finally, since everyone has tier 3 deals that last different amounts of time, rights might have to be bought back to make that work. Who knows though--maybe there is some way to work out your idea with everyone retaining their own rights, but distributing them through this pay per view streaming site as well. Expanding into new large markets could also help the bottom line perhaps. [/QUOTE]
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