Verizon and ESPN battling over ACC Network

Multiple outlets are reporting on Disney's showdown with Verizon's Fios system, as the two sides can't agree on a new price for the Disney family of networks. The main point of contention is ESPN's new ACC Network. If the sides cannot agree, all Disney networks might be taken off the Verizon system. Most of you are probably saying "who cares?" but Fios' four million subscribers are mostly in the northeast corridor and include plenty of BC alumni.

These games of chicken happen nearly every time a college network rolls out. The Big Ten dealt with it (and eventually won). The Pac 12 dealt with it and is sort of losing, as they still are not on Directv and several west coast outlets. I think ESPN will probably win this battle as unlike the Big Ten and Pac 12, they have very powerful leverage with the ESPN Networks as well as the Disney channels. Plus Verizon has multiple rivals who will gladly use this to get people to switch providers.

The ACC Network doesn't officially launch until next football season, so there will plenty of work arounds established if the two sides never reach agreement.

ACC Network focus of Day 1 of ACC Media Days

During his state of the conference press conference John Swofford spent much of his time on the ACC Network. The few big takeaways were that the conference is going to put ACC Matchups on the Network right away in 2019. The opening weekend ACC game is rumored to be BC-Virginia Tech. I don't know if we should be honored or worried about being first.

Swofford also shared how far behind financially the ACC revenues are compared to the SEC and Big Ten. The Network should shrink that gap a bit.

Carriage is the final and most important issue. Who cares about the ACC Network if no one can see it. Swofford claims ESPN is going to leverage its other assets to force the cable and satellite providers' hands. ESPN seems pretty protective and fearful of cord cutting, so I don't know how much hardball they will play. I am hoping that if the major carriers don't open up the season with the network, that fans will have other access points.

ESPN cutting corners on ACC Network?

The News & Observer is worried about ESPN's announcement that instead of producing the ACC Network from Charlotte (where the SEC Network studios are), the new network will be in ESPN's headquarters in Bristol, CT.  To the typical future viewer, this won't make a difference. Who cares where the talking heads are? Because of the connection and involvement of the conference, there won't be much controversial content and true editorial independence is out the window already. What should matter to fans and the partner schools is ESPN's financials and strategy in the mount of cord cutting battles. 

ESPN is in a battle with Northeast cable companies about surcharges and college networks. The ACC Network deal has mandated payouts to the partner schools. Maybe the production cost cutting is an offset to whatever new, less lucrative deals they may have to cut with cable companies. 

I don't really care where the production originates or what sort of deal ESPN cuts with the cable and satellite companies. I only have three questions. Will I be able to get the ACC Network when it launches? Will the production quality be decent? And will the network finally provide the long-term stability the conference needs? I know the ACC had to make this deal and picking ESPN as a partner was the best option, but it all feels too little, too late. Hopefully I am wrong and the network become a great source of content and revenue for BC and the other schools. 

A look at the investment required for the ACC Network

This article is not about BC, but does show what ESPN and the Conference is requiring for campus video infrastructure. By 2018, every school needs to have production facilities on campus, production personnel, and fiber cables directly to ESPN (to avoid satellite trucks). Public records show the costs in Virginia and Virginia Tech are ranging between $5 and $7 million.

I don't know if the ACC Network will be a financial success, but it looks like the conference and ESPN are committing the resources needed so that there will be lots of coverage and quality production.

BC might debut on ACC Network

The ACC Network is still another year away, but BC could find out soon if they will play the first football game on the network. Half the conference can't play on the network that weekend in 2019 because they've already booked a non-conference game. BC hasn't locked in a game yet making them a likely candidate.

In my opinion being the first game -- or one of the first -- is a good thing. BC can hype it up to recruits and earn some goodwill with the schedulers at ESPN.

The downside is we don't know what the carriage issues will be like then. I would hate for BC fans to not be able to see the game due to a fight between cable companies and the conference. Hopefully there is some online option for those who won't have the ACC Network in 2019.

ESPN assures the ACC there will still be an ACC Network

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.

Wagner game marks BC's debut on ACC Network Plus

BC announced the kickoff for the Wagner game in two weeks. It will be at 1 PM. The game itself is not a big deal. And the kickoff time isn't much of a big deal either (although tailgaters prefer the 1 PM games to the noon games). The big deal is that this will be the first BC Football game shown on the new ACC Network Plus.

The Plus is basically ESPN3 but with ACC branding. It is an over-the-top version of the upcoming real ACC Network. What will be important is seeing what, if anything, ESPN adds to the production. The branding is an easy thing to do. I hope they are investing something more. Either better announcers. Better production values. Maybe more camera angles. There should also be a dedicated ACC halftime show.

If ESPN doesn't do anything special, then I fear for the real ACC Network. If they are not investing in the conference now, what makes us think they will break new ground when the network launches in two years?

ACC Network "Extra" starts Friday

Our first glimpse of the ACC Network starts Friday with the launch of ACC Network Extra. It is essentially an Over-The-Top network that ESPN is powering. It is available to anyone with a WatchESPN or the ESPN App. While this is exciting, it is really just a fancy name for what most of us had and have with ESPN3.com.

It is a good first step, but the majority of the content with be non-revenue sports. This is good news for the diehards of these random sports. The number of games and their production quality will be much better.

It will be interesting to see how many actually use the "Extra" service. I think football still drives demand and viewers. Without key content, I think this first step will just be small one.

More on the scheduling debate in the ACC

We can assume that ESPN is well sourced on their ACC scheduling talks since ESPN is waiting for an answer. Tuesday Andrea Adelson broke down the even split between the 9-1 crowd and the 8-2 crowd. BC is firmly in the 9-1 camp. Ultimately it comes down to the flexibility needed for those schools that have non ACC rivals (GT, FSU, Clemson and Louisville) and those who have real trouble scheduling games among the Power 5. Something or someone will have to give since the ESPN/ACC Netwok is owed ten Power 5 games per team.

My guess is that the 8-2 crowd will win out. They have the most powerful football brands right now and the 8-2 model can still meet the needs of the 9-1 crowd. How? By allowing ACC schools to play each other as non-conference games. That puts BC at a slight disadvantage because our permanent crossover game against VT counts in the standings but a non-conference game say against Miami might not. But in my opinion, that is a minor problem. 

I prefer 8-2 and would like to see BC take on any and all Power 5 teams, even if it hurts our bowl eligibility on occasion. 

A compromise will be reached soon and I am sure it will be called unanimous regardless of how the actual votes play out. 

Truth comes out on ACC Network deal

There has been plenty of talk about future ACC Football schedules. Would the conference move to nine league games? Could Georgia Tech's idea of eight ACC games plus two Power 5 games even work from a logistics standpoint? The league delayed their decision on future schedules Friday but will have to decided soon. We know that because the new ACC Network contractually calls for ten Power 5 games per team!

So when the smoke clears, schedule changes are not about playoff spots, computer rankings or even the idea of the conference wanting to challenge itself. It is all about TV money. ESPN gave the conference a bunch of money and now wants some good games. I don't blame them and think the ACC's greed will be good for BC Football fans. One way or another our team will be forced to beef up its schedule. You won't have to sit through as many lame home games because ESPN won't pay for them.

In a world where BC is forced to play ten Power 5 games, my preference is the 8+2 model. This is purely for the variety it would bring to the schedule. And if BC has trouble finding willing and interesting Power 5 teams, they can always schedule non-conference games against other ACC teams in need of a game. Would anyone object to playing Pitt or Miami at random intervals to fill out the schedule?

This doesn't mean that Bates has to schedule Alabama and Texas tomorrow. The ACC has some run up time built into the TV and ACC Network deal. The looming Big 12 expansion also means that the pool of Power 5 teams could expand at any minute. But in the end, this will lead to BC playing more teams that matter. If you are a fan of football and tired of cupcakes, this is great news.

The blessing and course of ESPN3

The UMass game at Gillette will be on ESPN3. Because it is technically an away game, a broadcast was not guaranteed, so getting the ESPN3 feed is a good thing (it will also get a television broadcast in the New England area). It was only a few short years ago that something like this wouldn't have been picked up, so I appreciate the access. I also think the production value of ESPN3 games improves every season. However, the ubiquity of OTT solutions only drives the importance of the ACC Network.

Media presence remains a selling point in college sports. It used to be a big deal to tell kids that all their games would be on TV. Now everyone can say that. As long as mom or dad or grandma has an internet connection, he or she can watch every play. If every game is on the internet, it can't be a big deal to recruits. But saying you are on ESPN or ABC or whatever does mean something. It elevates the importance of the games. The ACC Network won't carry the same level of cache with recruits, but at least it is a dedicated network to their conference. We can also say that all of the games will be on ESPN's family of Networks (since the ACC will be part of it).

Having the ACC Network instead of streaming ESPN3 will also change perception with some of our fans. The diehards are used to streaming the games. But there is still a portion of the fanbase that would rather just turn on their TV and flip to the channel.

With the UMass game picked up, every BC game will have some sort of coverage this season.

New details on ACC Network

Stewart Mandel posted a good article on the new ACC TV deal that resulted in a hard date for the ACC Network. What was clarified for the first time is how ESPN is going to generate money and guarantee carriage in a time when these types of networks are under fire. ESPN/Disney timed the launch of the ACC Network so that it coincides with the renewal of all the ESPN Networks. ESPN and the ACC will bundle the new network with the other ESPN Channels in an all or nothing proposal. If your cable company wants ESPN, they are going to need to carry the ACC Network.

Mandel also explains that basketball was a much bigger driver of the network than previously believed. All those Duke-UNC games plus the other second level powers will carry the network during the winter months.

I still have doubts that Notre Dame will ever give up football independence but they are the final piece in the puzzle. If the new playoff forced them into a conference, it will be the ACC. And if/when that happens, that gives the ACC one more trigger to juice the TV deal.

ACC Schedule Basketball to expand

The launch of the new ACC Network will mean many things but our first tidbit is that the basketball schedule will expand to 20 games. This is good news for BC. We have had a hard time building good basketball schedules. They've been either too hard or too easy with few games at Conte filled. These two extra games will improve BC's RIP opportunity and increases the number of quality teams that come to Chestnut Hill.

What comes next? My guess is more ACC Football games. It will only make sense. Basketball is nice but Football is what will drive the new network.

ACC Network coming in 2019

After years of speculation and enduring numerous changes in the college football and TV landscape, the ACC Network has a start date. It will come in 2019. The specifics and details will come later in the week at the ACC Media Days. But the highlights include extending the current TV, locking in Notre Dame and the ACC finally having a network. 

ESPN remains the key partner in the deal and that should help. Even in its decline, ESPN still has cash and leverage to get the ACC Network off to a good start. 

For BC this is continued good news. It provides stability. It provides more money. It keeps us on par with other Power 5 teams and for our fans, it means that much more coverage and content. 

ACC Network not dead yet

With cord cutting and ESPN killing Disney's stock, the ACC Network has never felt further away. Yet Awful Announcing read through the ACC Meeting tea leaves and thinks the project may still be viable.

Although the specialty networks have been money drains for ESPN, my guess is they are still willing to do them just to ensure a long-term relationship with the ACC. Look at what is happening with the Big Ten. They have their own network independent of ESPN and are now looking for another blockbuster TV deal. I am sure that as ESPN and Disney decide how to budget their rights deals, they would rather have a true partnership (with equity) with the ACC than overpay to lose money on a Big Ten deal. 

Awful Announcing referenced the impatient ACC Athletic Directors. I am sure that is a factor, but the bigger factor is ESPN stopping the cord cutting. Once they have that figured out, then they can move onto creating the ACC Network.

What is the future of the ACC Network?

As Chad Scott pointed out (HT EO) ESPN owes the ACC $45 million dollars this year if they do not launch the ACC Network by July 1, 2016. July is still far away, but I don't think the ACC and ESPN are going to rally and launch a network in three months. It looks like the ACC is going to get the money from the network without having an actual network.

The change in plans is very much due to the cord cutting phenomenon. And while the conference will lack the cache of having its own network, this is probably a better deal. In this set up, there is no financial downside. ESPN remains very much in bed with the ACC, plus this sort of deal incents ESPN to put ACC content on its own channels and in key slots. I've joked, but ESPN U will be the default ACC Network.

The extra money would move the ACC TV deal closer to the SEC's and the Big Ten's. Plus there is still a chance to have a true network in 2017 and beyond if the economics or marketplace change.

Can the ACC still use the Pac 12 for leverage?

Fox's Clay Travis recently posted a ranking of the 15 most valuable sports networks. In the end he lists the Pac 12 Network as a cautionary tale. Although the network has decent reach, it doesn't generate high fees per household. Travis then mentions the ACC desire to have its own network. The chatter on the ACC Network is not new. However, it may be time to restart an old idea: a joint network between the ACC and Pac 12. Even if the ACC wants its own network, at least talking to the Pac 12 gives the conference leverage with ESPN and potential cable partners.

The History
Before the Pac 10 expanded and formed its own network, there was speculation that the ACC and Pac 10 could join together to form their own sports network. At the time the Big Ten was the only major conference with its own network. The ACC instead took a then record payout from ESPN. Since that deal, the Pac 12 went ahead and formed its own network, the SEC finally launched theirs and Texas started the Longhorn Network with ESPN.

The ACC's spot in the negotiation cycle
Since BC joined the ACC, the conference has always signed record-breaking TV deals only to see other conferences get bigger deals and more control over their inventory. The ACC has done a few things -- like add Notre Dame -- to improve the deals, but the pattern remains. The ACC signs a deal only to see it outdated the minute the ink is dry.

ESPN and the ACC
The ACC has a great relationship with ESPN. The network currently controls all the inventory and distributes it across their channels and resells select games to Raycom. But at times it feels like ESPN takes the ACC for granted. They helped the SEC get its network off the ground. They still give prime early timeslots to the Big Ten. I understand that ESPN is running a business and wants ratings regardless of teams, but I feel at times that the ACC could be in some of those better slots and generate equal ratings. But because of the exclusive partnership, ESPN can put the ACC wherever they choose. If the ACC had other distribution partners (or its own network), the conference's scheduling and revenue leverage would be better. If the ACC goes ahead with its own network ESPN will be involved. But can the ACC get ESPN to make the network a priority, like the SEC Network is/was?

Why partner with the Pac 12 now?
The ACC and Pac 12 compliment each other in multiple ways. The spread of the schools from the Eastern timezone to the Pacific means games wouldn't compete for air time. The ACC also brings huge east coast TV markets. Getting together means this could be the first college network with national reach and national appeal for advertisers. (No more FoodLion or Bojangles.)

The other big benefit for partnering with the Pac 12 is that they've already done a lot of the heavy lifting. They have the TV studios. They have the reach. They have the satellite signals. Adding the ACC just allows them to return to those 90 million homes and drive new, more lucrative deals.

The final reason to partner with the Pac 12 on a TV deal is that it ties them to the ACC. With all the talk of the Power 5, there is still an underlying fear of teams breaking away or forming a Power 4. With the Pac 12 and ACC in a partnership, the two conferences can act together on issues like paying players, freshman eligibility and the football selection committee.

Since it already has its own deal, it might not make sense for the Pac 12 to partner with the ACC. But it does provide them with a chance to jump start their network. Even with a revenue split with the ACC, the Pac 12 could come out way ahead of where they are now.

Why talk is important
The ACC spurned the Pac 12 years ago, so why would they enter an agreement now? Especially when they are finally close to getting what they want: The ACC Network. I think the ACC will probably get their network this time. But ESPN could drag its feet. Cable operators could balk. By at least exploring a Pac 12 partnership as a threat, the ACC gets a little more leverage. ESPN would rather give the ACC what they want instead of having a true competitor in a national ACC-Pac 12 Net that ESPN doesn't control.

How this ends
I would love to see the ACC make a bold mover. But my fear is more of the same -- an outdated TV deal and a half-baked ACC Channel. But before they sign a new deal it wouldn't hurt to call the Pac 12.

What the SEC Network means for the ACC

ESPN and the SEC announced the SEC Network Thursday. None of it was a surprise as the SEC has publicly stated a desire for their own network after the success of the Big Ten and Pac 12 Networks. Due to the ACC's relationship with ESPN, whatever happens with the SEC will probably be duplicated in the following years with the ACC. Some of the SEC's plans will translate immediately to the ACC. Other issues raise questions.

Production. The SEC Network will come from the heart of the ACC in North Carolina. ESPN has used a production facility outside of Charlotte for ESPN U for years. The SEC Network is just an expansion of that. There is a good deal of ACC production already based in Charlotte via Raycom and ESPN U. When the ACC Network moves from internet channel to true cable network, you can predict the production will be based in North Carolina.

Content. ESPN needs to fill all of their current platforms (ESPN, ESPN 2, ESPN U and ESPN 3) yet feels there is enough room and games for the SEC to sustain its own network. The ACC has more teams and therefore more games. Currently we supply a disproportionate amount of games (among the major conferences) to ESPN U and ESPN 3. If the ACC becomes a true network like the SEC, how will ESPN backfill those programming slots that used to be SEC and ACC games?

Cable Households. This will be the trickiest issue for ESPN. They will ask for huge premiums for the SEC Network in SEC markets. Can those markets with ACC schools also sustain another push from ESPN in a few years for the ACC Network? The ACC's geography is different enough that ESPN could still generate revenue even if it had to take less in places like Georgia, Florida and South Carolina.

ESPN and the ACC just announced a new deal with the Grant of Rights signing. There won't be a formal ACC Network announcement for at least a year. In the mean time, the ACC needs to press ESPN for revenue parity and scheduling parity. With or without a cable network, those issues are critical if the ACC is ever going to catch up to the SEC on the football field.

Does the Grant of Rights finally secure the ACC?

The ACC agreed to a shared Grant of Rights until to 2027. Many are saying this keeps the conference secure for years to come. I still have my doubts. Let me explain:

The Good
The grant means all of the ACC's content is now pooled. BC's local radio deal, online rights for Wake Forest Field Hockey, or a Duke-North Carolina game all have the same owner and manager -- the conference. No more local, or team only deals. It also protects new media/internet rights. Obviously not all team's rights are equal. Florida State's radio network is worth much more than say the rights to BC softball. So it is a good sign that every team was willing to sacrifice control and that potential revenue in order for it to be shared by the group. (Perhaps there is some allocation method so a valuable property -- like a BC hockey or Syracuse Lacrosse -- might get a reward for performance. We will know more in the coming days.) The deal also creates another trigger with ESPN, so I predict we will hear about the new financial terms of the ACC-ESPN agreement shortly. It also puts us in the same financial and content standing as the Big 12, which neutralizes one conference as a predator.

Finally, it moves the ACC one step closer to an ACC Network.

The Bad
Financially this doesn't level the playing field with the Big Ten, Pac 12 or SEC. The ACC remains in a catch up position. It also doesn't include Notre Dame. Without the Irish and in a secondary money position, any of the big 3, but most likely the SEC of Big Ten could poach an ACC team.

While a new conference partner wouldn't get the new (former ACC) school's home games or radio content, the Big Ten or SEC would still get to market to those cable homes in the new markets and would still get all of their conference away games.

One only needs to look towards Maryland to realize what the big conferences are willing to do and pay for. Maryland's content is not worth the $50 million the Big Ten is paying upfront. But the long-term potential is when you factor in Maryland cable homes. And think of how much more valuable other programs are when compared to Maryland.

What's next?
I think this will cool things off for a few months. The next domino is the SEC's new network and if the ACC is finally willing to get our network on cable. I am glad BC is secure, but I know enough about this process to know it won't end soon.

ACC finally gets around to cable network

Sports Business Daily is reporting that the ACC is once again exploring the viability of its own cable network. The conference has missed various windows and opportunities over the years and now it might be too late. I still think they need to move forward just as a hedge in case the market turns again. I don't know if there will ever be demand in various markets or if we can ever generate the carriage fees the Big Ten and Pac 12 Networks are now getting, but the ACC needs to try. Of course ESPN -- our lone partner -- is lukewarm on the idea. They've already committed to the SEC Network and truthfully they have no need to help us. Our contract with them is pretty binding. But as I've said before, it is in ESPN's best interest to keep the ACC healthy and whole. If they don't, they will end up paying more for content they already have and surrender even more control.