ESPN's mass layoffs and declining subscriber base has the Worldwide Leader scrambling. They are trying to prove to Disney and Wall Street that they will continue to grow and pump out money. But the changing market place and their massive rights commitments have some partners wondering. One of the commitments under the microscope is ESPN's future ACC Network. Considering it hasn't even launched yet, it would seem to be vulnerable. But ESPN assured the ACC that the network is still coming.
This is one of those times where I am not really worried about BC or the ACC. If anything, partnerships like this are much safer to ESPN than their rights deals with the NBA or NFL. First the ACC is locked into a long, long deal with ESPN. While the startup costs for the network are big, there is huge upside for ESPN in the second decade of the deal. Most of the league deals are much shorter and promise no ROI. Second, the ACC deal is still cheaper content than the NFL or NBA. It might not drive the same eyeballs, but the advertising demographics remain good and college football gets better ratings than professional basketball.
Now the initial model for conference networks was bilking cable subscribers. Clearly that aspect of the deal is looking less viable. Grandma in North Carolina doesn't want to pay a premium to watch BC-Syracuse in football. But even if the subscriber base is not as lucractive, ESPN and the ACC still have avenues to make money off of ad revenue and in turning the ACC Network into some sort of tier or subscription. I know most BC fans would pay six or seven dollars a month for the service.
As for cord cutting, ESPN remains a good technology partner. The ACC Network is using ESPN's infrastructure so it will be available on most devices.
But even if all this goes to pot and there is no network, the ACC will get a huge buyout. If the buyout remains the worst case scenario, that is not a bad thing. The ACC can take the ESPN's money and find a new TV partner.
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16 comments:
Said it before. TV cable prices are the biggest conspiracy in America. The companies raise rates every year and the money goes directly Professional Leagues(and their owners) and College conferences(and their schools).
Look at the salaries of NBA players over the last 10 years. Keep in mind 10 of the teams were bankrupt 5 years ago. Where do you think the money came from to a)make the bankrupt teams solvent and to b)make the salaries skyrocket?
Deals with ESPN/TNT which are "doable" because of cable bill increases.
This is a classic free-market scenario. Institutional type businesses charge exorbitant rates, people find a way to get what they want or offer what they want at cheaper rates and the institutions go into scramble mode. Razorblade industry is similar. College tuition and loans is the next one to fall(Cannot charge 70 grand a year to get a sociology degree and a finance degree. One leads to a 50 grand salary and one leads to a 100k salary). I am looking for schools to start charging different rates for different degrees. More likely at state schools and mediocre private schools.
AJ Turner to Northwestern.
Didn't that news come out from other sources earlier?
How about charging for mediocre students like you?
Mod, You didn't know until you looked it up today. Conniver.
Max, Getting sensi over the word "mediocre?" Physically tough but not mentally?
Well the long college selection process has finally concluded for my youngest. Back in the fall I sat down with him and we drew up a criteria list. In a nutshell, he wanted to go to a top Catholic school in New England with the region's best D1 sports program.
Today he's a proud Providence Friar.
. . . Meaning you couldn't get him into Boston College. Rich dad poor dad problem?
Not to Northwestern.
Knucklehead, you will never have to worry about your offspring going to college. Blow up dolls can't get pregnant.
Why I waste irony on a pathetic dumb ass like you is beyond me. Go suck off Daz again.
Knucky is still mad his boy Batesy with the Hundred Dollar Haircut got axed.
You are the worst of this country. Did you go to BC beceayse mom and dad would be so proud? Must have been tough studying and going to ckass - and no other worries. So hard to get an A and screw ugly coeds. Pretend you actually achieved something. Then have another drink
TGS, Don't care about your "son." Save your attitude for "him." You made a stupid wannabe barstool sports-like comment. Sarcastic, ironic, full-circle and formulaic. Irony isn't funny when it is based on fiction.
Mod, Not a BCI reader. Globe had the Northwestern part today.
El Miz, Thought Trump would have had you swept up and dropped on the other side by now. Cabeza de mierda.
Max, you are weird.
Don't tell me the last two comments are from different humans. That would ruin everything.
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