We keep hearing that the ACC network may be internet-based and not a traditional channel like the SECN or B10N. For the life of me, I cant understand how that would make any type of considerable money
Consider the business model of linear channels like B10N or SECN is to get $1 per subscriber from EVERY cable household in their regions. So while that diehard Alabama fan is way underpaying for SECN. The 30 year old artist living in Chicago who has never watched a college football game, is way overpaying for B10N......but that's how this works. EVERYBODY pays.
So, with an internet-based channel, there is no "carriage fee." So, right there, you lose almost all revenue. And because distribution is so much smaller, you cant charge as much for commercials.
So, it seems like it would have to be subscription-based. But that's a problem because only diehards would buy, whereas EVERYBODY pays $1 for the other networks.
So, if we use hypothetical numbers, if the network gets 500K subscribers (which I think is overestimating) and they charge $50/year, that's only $1.7 million more per team.
I think internet-based networks are a good idea for leagues that have a niche audience like the WWE, rugby, cricket, less poplular soccer leagues, etc because you can charge diehard fans of those leagues a lot of money to make it worth it. For a major college football league, you have tens of millions of Americans who would watch it if its on TV, but not nearly as many willing to pay to watch it on an app. The guy living in OK may turn on Pitt vs UNC because its on cable but not a chance in this world, he is paying to watch it on an app.
Consider the business model of linear channels like B10N or SECN is to get $1 per subscriber from EVERY cable household in their regions. So while that diehard Alabama fan is way underpaying for SECN. The 30 year old artist living in Chicago who has never watched a college football game, is way overpaying for B10N......but that's how this works. EVERYBODY pays.
So, with an internet-based channel, there is no "carriage fee." So, right there, you lose almost all revenue. And because distribution is so much smaller, you cant charge as much for commercials.
So, it seems like it would have to be subscription-based. But that's a problem because only diehards would buy, whereas EVERYBODY pays $1 for the other networks.
So, if we use hypothetical numbers, if the network gets 500K subscribers (which I think is overestimating) and they charge $50/year, that's only $1.7 million more per team.
I think internet-based networks are a good idea for leagues that have a niche audience like the WWE, rugby, cricket, less poplular soccer leagues, etc because you can charge diehard fans of those leagues a lot of money to make it worth it. For a major college football league, you have tens of millions of Americans who would watch it if its on TV, but not nearly as many willing to pay to watch it on an app. The guy living in OK may turn on Pitt vs UNC because its on cable but not a chance in this world, he is paying to watch it on an app.