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ACC Faces Many Variables On Potential TV Network To Rival SEC, Big Ten LINK!

CaptainSidneyReilly

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Dec 25, 2006
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RED PRINT TO SHARE IMPORTANT ASPECTS WITH THE POSTERS THAT OFTEN NEGLECTED WHEN DISCUSSING EXPANSION AND NETWORKS CREATIONS:

The ACC still is figuring out whether it will start a dedicated cable channel of its own. Details have been scarce about the behind-the-scenes process the league and broadcast partner ESPN are navigating in an effort to determine whether it makes financial sense to start an ACC-specific network like the ones some other conferences have.

ACC commissioner John Swofford even joked about the situation: “I know you're very tired of hearing me talk and not say much on that subject.” The possibility excites ACC coaches and athletic directors who say they want the league's ultimate decision — whatever it is — to be a prudent one.

Virginia athletic director Craig Littlepage is “optimistic for the prospect of an ACC channel,” though he acknowledges “a lot of elements and moving parts with the changing landscape on so many different levels.” N.C. State's Debbie Yow praised the ACC for being “diligent in their efforts.” “Obviously, all ADs and all coaches want this to happen sooner rather than later,” Yow said, “but the commissioner will let us know when the time is right.”


Swofford never has set a timetable for a decision even as the idea of an ACC channel has replaced conference realignment in recent years as the league's most challenging off-the-field topic. North Carolina coach Larry Fedora said establishing a network is “crucial for the success of the league” because of the added boost in exposure and revenue it could generate.

“I think every league's going to have it,” he added. “The ones that don't right now, they're going to have it eventually. So you might as well get in there and get going.”
But industry analysts said the ACC is wise not to rush into anything in an effort to keep up with the Big Ten and SEC, whose networks have been the most successful.

“A lot of the other conferences and individual schools have set up networks, and it's successful. But it isn't a slam dunk in as far as being able to get the cable carriage, the production and organization and selling advertising on it,said Mark Fratrik, an analyst for Virginia-based market research firm BIA/Kelsey. “There are hurdles to go through.”

The lucrative Big Ten Network launched before the 2007 season and is backed by Fox. The 1-year-old SEC Network is tied to ESPN, and its success helped push that league's revenue total to a record $455 million split between 14 schools.

The Pac-12 has no such partner, instead owning the network it started in 2012, and has faced some distribution difficulties — for example, leading satellite provider DirecTV does not carry the network.

The ACC's most recent expansions — which moved the conference into Western Pennsylvania, New York and Kentucky and brought on board national brand Notre Dame in all sports but football — have significantly broadened the league's geographic footprint. That helps in building a base of subscribers for a potential network.

The infrastructure for a channel would seem to exist already in Charlotte — where the SEC Network is headquartered along with ESPNU. There's also the issue of changes in viewing habits, with content available on mobile devices and some consumers dropping their pay TV packages altogether — a phenomenon known as cord-cutting.

Fratrik said that “is a concern of anybody who is considering a new network,” though Swofford downplayed the impact cord-cutters might have. Ultimately, the issue will come down to whether both ESPN and the ACC will make more money with a league-specific channel or without one.


Under terms of the ACC's most recently renegotiated media rights deal with ESPN that runs through 2026-27, the league's 14 football playing members will receive an average of more than $20 million annually. “While you can sort of generate an Excel spreadsheet and models, ‘OK, we'll get this subscriber dollar amount each month,' ” Fratrik said, “you would have to weigh that against the dollar amounts you get presently from the various sports contracts to say whether or not the ACC network is more profitable than what's going on now.”


Read more: http://triblive.com/sports/college/pitt/9025205-74/acc-network-league#ixzz3keQnOAaA
 
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I don't think there is near the demand for it as there is the B1G and SEC. I live in ACC territory and there just isn't anywhere near the passion for college football as in the Southeast or Midwest. Passionate about the sport, yes. Passionate about college football in particular, not really.
 
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I don't think there is near the demand for it as there is the B1G and SEC. I live in ACC territory and there just isn't anywhere near the passion for college football as in the Southeast or Midwest. Passionate about the sport, yes. Passionate about college football in particular, not really.

While that is true, you cant say that about all ACC/Big Ten states. If I had to rank the states based on popularity of a conference network, it would go like:

1. Nebraska (nobody lives there though)
2. Ohio
3. North Carolina
4. Michigan
5. Virginia
6. Iowa (nobody lives there)
7. Wisconsin
8. Pennsylvania (BTN)
9. South Carolina
10. Florida
11. Indiana
12. Kentucky
13. Minnesota
14. Illinois
15. New Jersey
16. New York
17. Maryland
18. Pennsylvania (ACC)
19. Massachusetts

NC and VA are 2 populated states which would get very high BTN-like ratings. Most BTN states are right there with ACC states in terms of interest.
 
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Good article. Nice summary as to why these things take time as well. Swofford also mentioned there are things that are out of the ACC's and ESPN's hands timing wise, such as when contracts are up and how they can utilize bundling to get better carriage, etc.

I posted an article here about the SEC network's one year anniversary and it stated Slive was smart not to rush things and waited until other contracts were up for discussion so the network could be bundled. Others wanted a 2011 go live date, but he waited until 2014 when the time was right. They probably could have done it but not with the success they had.

It's not as simple as just saying, "ok, let's start a channel, GO".

I don't think an ACC channel will be as successful as the SEC or BIG, they just have more passionate fans, but I think it can still be successful due to the success in other sports as well as the footprint it lies in.

People keep saying 2017. I guess we'll find out in the next few months.
 
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I don't know how the financials look for these networks, in terms of what generates what share of the revenue. Yes, we all know that football is king, of course, but these networks are showing content all year long, 24 hours a day. And for the very tiny fraction of the time that live football is being shown on these networks, it is always the lesser games, since the big draw games are already being shown by the major networks. The folks tuning in to watch Rutgers play Indiana, while OSU is playing someone on ESPN/ABC, are almost all fans of those two schools (and even they have to hold their noses to watch).

I have to think that the while football blows away basketball in revenue production from the networks, that basketball makes up a far greater share of revenue on the conference networks. Most football games are already on major networks, leaving the scraps for the conference networks. In basketball, this is far less true. Many good games are still available to be shown. And of course, there are three times as many basketball games to show, and they have hours to fill. And the bball games shown on conference networks face less competition on the big networks, in part because games are played during the week.

And while the Olympic sports are sparsely watched, that stuff is on all the time, because they have to fill up the hours with content. The revenue may be low for that stuff, but there is a lot of hours of it, so cumulatively, it has to represent a bigger share of revenue than we might guess.

Which for the ACC, is a positive. While we don't have the same passion for football as the SEC and B10 fan bases, its there for basketball. And its there for baseball, soccer, and other sports that are ideal for these types of networks.

Anyway, I know revenue is still linked to football in a big way on these conference networks, but I would think not nearly to the same degree as they are with standard network programming.
Just my thoughts.
 
With regard to these networks, the big money is in the carriage, and that is driven by the fear of the cable companies losing viewers. The SEC network was a success because you have people down in the south that live and die for the SEC and football, and if their cable providers didn't carry the game, they were going to another provider.

I don't know if the ACC has that same diehard mentality, even for BB.

Again, I think it will be successful, but it is the fans and the threat of leaving one provider for another if you don't carry the network that mainly drives the revenue on these.
 
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