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Fox (our partner in the BTN) just bought into the YES Network today (49% now, with an option to increase that up to 80%).
The key here is that the YES Network broadcasts NY Yankee home games to it's nearly 12 million subscribers in the NYC area. As part of the deal, the Yankees extended their contract through 2042.
Insiders believe this is the first step in packaging the BTN with the YES Network, which would be a windfall for B1G member schools.
Love him or hate him, Jim Delany is playing chess against a bunch of checkers players.
Great news for all B1G fans (at least until this gets sent to Wells)
NEW YORK owners hundreds of millions of dollars and values the channel at $3 billion.
So Rupert Murdoch hates MSU football too?
Formerly Venomous Green Duck. Join Date: Nov. 2004 # of posts: 17,867.
For as much shit Delany gets around here he's handled conference expansion and the BTN extremely well.
The end game is NOT the only 2 schools that insist on having their own separate TV deals.
As for taking BC over Maryland..... No. Fuck no.
Both of them won't budge.
Not only that but Delany has made every member school very rich.
That's a guaranteed way to keep his job as long as he wants it.
How long have you lived in your alternate reality?
ND wanted no part of the Big Ten. The Irish were invited once before PSU, said no and shortly after signed their first NBC contract. The Big Ten asked again around 2004-2007 and timed their invite to coincide with the ND Alumni trip to Ireland. The Alums and donors told ND in no uncertain terms they didn't want to join The Big Ten or give up their NBC contract for revenue sharing.
Texas is THE REASON Nebraska, Mizzou, Texas A&M and Colorado left the Big 12. Texas fought revenue sharing. Texas started the Longorn Network with ESPN as a partner and made it very clear they wouldn't merge their Longhorn Network with a Big 12 network.
ND played the Big East until it was clear the Big East was going to nowhere except down when Pitt and 'Cuse decided to go to the ACC. So ND got the ACC to capitulate to a sort of pregnant we'll play up to 5 games with your ACC but no join the ACC in football.
End game is probably 16 teams. Rumors have had Georgia Tech, UVA and UNC. If you believe the contiguous state story UVA and UNC would be next.
"Love him or hate him, Jim Delany is playing chess against a bunch of checkers players."
My humble advise is to let this thing play itself out before people start to crow about how brilliant Delaney is.
You want to know some other famous chess players. 90s dotcom owners who sold a ton of stock based on projected scenarios where the market was always booming. I think we all know what eventually happened there.
Delaney's "brilliance" rests upon one central foundation. Namely that the cable TV market not only does NOT change in the next ten years but it grows exponentially.
But what if it does change? What if the new wave is ala carte digital services?
What if in the next 7 years customers have the option to ditch the overpriced cable bundle and go to a system whereby they pick and choose what packages they want to subscribe to?
For the purposes of this discussion, if that were to happen the entire financial house that Delaney has sold expansion on would collapse. Delaney is banking on the current model holding where by including the local team (Rutgers & Maryland) those regional carriers would have to carry the BTN for their local fanbases. In the process the BTN would get carrier fees of I think 50 cents from every household in those areas. But if the new wave is content via ala carte then "market" size no longer matters. What would matter is fan intensity. How many die hard fans does that area have who will be willing to pay for content services?
Digital TV as we know it is changing and more and more people are away from cable company bundles where they pay for channels that they never watch, and moving toward subscription content services that give them what they want at a fraction of the cost.
One final note. Do you realize that cable companies actually pay ESPN NOT to stream 'Watch ESPN'. They do so for a reason. They know that if ESPN, the most profitable cable company in America, ever unleashed an ala cart subscription their entire business model would collapse.
The fact that ESPN already has an ala cart channel basically read to go should also tell you something what where they think the industry is heading. ESPN current gets $4.75 from carriers for their service. They could easily charge twice that with an ala carte package and diehard sports fans would consider that a bargain.
As I said in the opening, the market is changing and people really should wait a couple of years before declaring winners & losers.
This post was edited by sw6230 17 months ago
The 90s dotcom boom collapsed because there were hundreds of companies that were worth millions (or billions) on paper, but they didn't have a single product. Stanford MBAs could pair up with Stanford Engineering/Comp Sci grads, and they'd have a venture capitalist throwing money at them. That's the failure there. The B1G has a huge market (bigger than any other) and the product (B1G sports) has been in demand for over a hundred years). So, that premise is shot down entirely.
You claim that an exponential growth in the cable TV market is the central foundation of Delany's plan. No. No it is not. Where do you get such an idea? Perhaps because you hope he fails, and you need to create some impossible hurdle for him to clear in order to succeed.
The central foundation of the plan is that Delany is taking the product to the market in the most efficient way possible (no middle man). He has the product, the consumers, and now the network that joins the 2, without the need for someone else to position themselves in between (ESPN) that wants to skim billions off the top. ESPN has no product, and has no consumers without content.
Regardless of the delivery method, Delany has the B1G positioned to keep more of the money generated. These dollars being thrown around aren't new money, they're just money that used to go to networks instead of the schools.
The fact that no one outside the B1G likes (or likes to admit) is that the B1G still has the most fans, the most well heeled population, and regardless of what device they watch the games on, the B1G is getting paid...and getting a greater share than any conference that lets ESPN ride the coattails.
BTN's business model isn't based on prohibiting consumer choice through cable bundling. It's based on filtering the demand for big ten sports away from every other major outlet. He's just eliminating a middle man. If the Big Ten contracts with ABC to show a football game, ABC makes its money by selling advertising. The amount they pay B10 is less than their ad revenue because they have to show a profit minus expenses.
Eliminate ABC and the B10 pockets all the ad revenue minus expenses. Running a TV station is no big deal anymore. Every community high school and government gets it's own channel to advertise the knitting guild and whatnot. Why not Big Ten football/basketball?
If demand for B10 sports justified ABC's interest then it will justify the Big Ten Network being offered at least within the Big Ten geographical footprint, which already includes about 1/4 of all households in America.
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