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ArtBest23
Joined: 02 Jul 2013 Posts: 14550
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purduefanatic
Joined: 10 Aug 2011 Posts: 2819 Location: Indiana
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ArtBest23
Joined: 02 Jul 2013 Posts: 14550
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Posted: 06/25/14 4:36 pm ::: |
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Since that was Delany's goal in the first place in adding MD and Rutgers, that dramatically reduces (if not eliminates) any incentive to add UConn in the NYC area or anyone in the DMV footprint. It's not about "ratings"; it was about getting onto the basic (or the "just above subsistence") level on these cable systems so that they could collect an "in footprint" fee for nearly every cable subscriber whether those people wanted or watched the BTN or not. Since they already have achieved that and have what they wanted in NY (and DC) now, adding another school in the same market would add little additional revenue, and not enough to offset the additional share to be paid out.
I suspect they would have to look to a significant new TV market like North Carolina or Atlanta or St. Louis to make it financially sensible to expand. (Which is likely why GaTech and Missouri's names pop up so frequently. GaTech is tied by a grant of rights; Missouri is not although it is rumored that SEC schools will be executing a GOR in conjunction with the SEC network rollout.)
Quality of the athletic teams, ratings, scandals, are not really relevant; the Big10 expansion is about building the BTN cable footprint and resultant revenue stream, and that's simply about market access. Once you have that access, then you move on to another market.
Major risks to this model were an end to bundling (i.e. a al carte cable), and cord-cutting. This Aereo decision may prolong the life of the current cable TV paradigm, and consequently extend the viability of the BTN revenue model for a considerable period of time.
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beknighted
Joined: 11 Nov 2004 Posts: 11050 Location: Lost in D.C.
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Posted: 06/25/14 7:17 pm ::: |
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Cable operators actually were intrigued by Aereo, as if it had won the case it could have set the stage for reducing or eliminating the retransmission fees that they pay to broadcasters. If cable were able to eliminate those fees, its costs would go way down and it would be more attractive to consumers.
There are some very interesting questions about what happens with video in the long run. It's not at all clear what the world will look like in 10 years, let alone 20.
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ArtBest23
Joined: 02 Jul 2013 Posts: 14550
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Posted: 06/26/14 9:09 am ::: |
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The stranglehold on live sports programming is one of the critical items propping up the current cable structure and discouraging a mass exodus.
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