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<blockquote data-quote="RonJohn" data-source="post: 621637" data-attributes="member: 2426"><p>I'm not even being a spokesperson for them. I don't understand how stating that these things are simple business negotiations is being a spokesperson for anyone.</p><p></p><p>There isn't any information in the public as far as I know. From what has been reported in previous TV contract deals, it is likely that there are stipulations in the contracts of companies that signed early with ACCN that if any other provider gets a better price, then they will get that price. For example, if DirecTV is paying $1.25 per subscriber for the ACCN and Comcast signs a contract for 62.5 cents, DirecTV's contract price is automatically changed to 62.5 cents. If such a case exists here, then there will be a break even point at which ESPN makes zero additional revenue if the sign Comcast at that price. If they sign Comcast to a lower price, then they would actually make less money because many more subscribers would be paying a lower price. ESPN would want to sign Comcast to a price similar to the already negotiated contracts, because they won't want the revenue per subscriber to drop.</p><p></p><p>Comcast is probably looking at the ACCN as a net loss either way. If they sign a contract to carry the network, then prices will have to increase at some point. They are already suffering from cord cutting losses, and higher prices will drive further cord cutting so they will lose subscribers. If they don't sign a contract to carry the network, then they will lose subscribers who want the network. Either way Comcast loses. The only way for Comcast to make a financial gain is for ESPN to allow them to carry the network at no cost. ESPN won't do that. I would bet that Comcast is looking at predictions for losses based on channel pricing and are looking for a sweet spot to minimize their losses.</p><p></p><p>I don't see a good guy and a bad guy. I see two business models that are both about to go extinct. ESPN and Comcast(Cable service) are both fighting to remain relevant, even though their business models don't work anymore.</p></blockquote><p></p>
[QUOTE="RonJohn, post: 621637, member: 2426"] I'm not even being a spokesperson for them. I don't understand how stating that these things are simple business negotiations is being a spokesperson for anyone. There isn't any information in the public as far as I know. From what has been reported in previous TV contract deals, it is likely that there are stipulations in the contracts of companies that signed early with ACCN that if any other provider gets a better price, then they will get that price. For example, if DirecTV is paying $1.25 per subscriber for the ACCN and Comcast signs a contract for 62.5 cents, DirecTV's contract price is automatically changed to 62.5 cents. If such a case exists here, then there will be a break even point at which ESPN makes zero additional revenue if the sign Comcast at that price. If they sign Comcast to a lower price, then they would actually make less money because many more subscribers would be paying a lower price. ESPN would want to sign Comcast to a price similar to the already negotiated contracts, because they won't want the revenue per subscriber to drop. Comcast is probably looking at the ACCN as a net loss either way. If they sign a contract to carry the network, then prices will have to increase at some point. They are already suffering from cord cutting losses, and higher prices will drive further cord cutting so they will lose subscribers. If they don't sign a contract to carry the network, then they will lose subscribers who want the network. Either way Comcast loses. The only way for Comcast to make a financial gain is for ESPN to allow them to carry the network at no cost. ESPN won't do that. I would bet that Comcast is looking at predictions for losses based on channel pricing and are looking for a sweet spot to minimize their losses. I don't see a good guy and a bad guy. I see two business models that are both about to go extinct. ESPN and Comcast(Cable service) are both fighting to remain relevant, even though their business models don't work anymore. [/QUOTE]
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