First off, I’m going to play both sides on this issue because I graduated from Florida State, however my daughter will soon be competing on the Kentucky gymnastics team. I love both schools and both conferences. For now I think Kentucky would be crazy to leave the SEC because of the 12 to 14 million dollar difference in the annual payout. However this could change over the course of the next 5 to 8 years. If conference network revenue goes the route of cord cutting (which pretty much everyone says is going to happen) then there will be a reduction in the contracts forthcoming for all of the conference networks. As it stands now, Directv, DishTV and almost all cable providers air the BTN and SEC networks. The reason that the conference networks pay so well is because everyone who has Directv, DishTV and cable pays about .66 cents every month for the SEC Network and .39 cents every month for the BTN Network. The SEC Network is broadcast into about 69,000,000 homes, and the BTN Network is broadcast into about 79,000,000 homes. This is about to change.
A recent eMarketer report stated that 23% of U.S. households, by 2019, won’t be subscribed to any type of cable service or satellite service. Cord cutting started a few years ago and is accelerating at a very quick rate. Of the 69,000,000 and 79,000,000 households mentioned above, only a fraction of that wants to receive the conference networks, and don’t feel it’s appropriate to be forced to pay for it if they don’t want it. That idea coupled with the fact that everyone is tired of paying $150.00 a month, or more, for their cable/satellite bill, will eventually bring down the cable and satellite businesses, or at least reduce their profits significantly. The cable businesses will have a greatly reduced market in cord cutting because many will choose to stream their television programming through their cable. But this will only just barely keep the cable companies afloat. The satellite companies are in trouble unless they can somehow perfect satellite internet coverage which at this point is very poor.
The cord cutting has affected Disney/ESPN. Their profits (or lack thereof) from cable/satellite have resulted in mass layoffs at ESPN and Disney. If the reduction in profit margin continues (which it will), the conference network contracts, when renegotiated, will be done so for less than what we see today.
No longer will the networks be packaged in a cable/satellite bundle and forced upon people. People will have to subscribe to the conference network individually and stream it. No longer will these networks be broadcast into 69,000,000 and 79,000,000 households like today. Those subscribing to the networks individually will be a fraction of those figures.
Another concern for the SEC Network (or for that matter any network) will be the capability to stream the network in many of the rural areas that will desire the SEC Network. Many rural areas of the south don’t have cable. As mentioned above, satellite companies have not perfected the ability to provide internet coverage, especially in rural areas. This potentially could be a problem in the future.
When the above begins to occur, that’s when Kentucky might want to consider moving if they were to receive an offer. The ACC is a better basketball conference, however it is nowhere near the football conference that the SEC conference is. Football would be easier in the ACC…no doubt. Don’t forget Kentucky beat my Noles in a Bowl game about eight years ago. With all that said, I consider the SEC to be a more prestigious sports conference than the ACC.