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<blockquote data-quote="slugboy" data-source="post: 882654" data-attributes="member: 282"><p>We may be talking past each other, or you may have meant something else, but how is it the case that the B1G doesn't need media rights to make money? </p><p></p><p>The B1G sells TV football games to FOX. Whether through ad revenue or carriage fees or something else, FOX makes money selling those games. For carriage fees, if FOX wants more, they have to convince Time Warner/Comcast/Spectrum/LocalCableCompany to either carry the network and pay for it or pay more for it than they were before because they've added more games that customers in that area will pay extra for. </p><p>The B1G splits the revenues from FOX among the member schools. If there's not an income increase (i.e. FOX doesn't get paid more from the local cable companies), the pie gets split among more schools and the payout goes down (i.e. the equal share gets split among 16 teams instead of 14, but the pie is the same size). </p><p>FOX isn't going to pay more for income that they're not getting. </p><p></p><p>The ACC Network got a bump in income through households/carriage fees when Comcast agreed to carry the network. </p><p></p><p>If a TV provider is paying money, it's for the media rights. Whether it's households or eyeballs or anything else, it's something accessible through media rights. </p><p></p><p>If any TV service (FOX/ESPN/etc) pays tens of millions of dollars without getting more content, they either have a magic group of subscribers who will just let their bills go up, or they're about to fire some of their negotiators. </p><p></p><p>FOX would be nuts to pay more without the media rights. The cable companies they get money from would be nuts to pay more. The subscribers would be nuts to pay more. The B1G would be nuts to pay USC and UCLA for income they're not getting. </p><p></p><p>In the end, for TV, it's all about the media rights and how much they can get someone to pay for a product based on them. Everything else is just rearranging the pieces. </p><p></p><p>(A side item is people watching "Pardon the Interruption" or one of the other talking head shows because they're on your team's network. One of the people who can watch more than 5 minutes of that will have to explain to me how that works)</p></blockquote><p></p>
[QUOTE="slugboy, post: 882654, member: 282"] We may be talking past each other, or you may have meant something else, but how is it the case that the B1G doesn't need media rights to make money? The B1G sells TV football games to FOX. Whether through ad revenue or carriage fees or something else, FOX makes money selling those games. For carriage fees, if FOX wants more, they have to convince Time Warner/Comcast/Spectrum/LocalCableCompany to either carry the network and pay for it or pay more for it than they were before because they've added more games that customers in that area will pay extra for. The B1G splits the revenues from FOX among the member schools. If there's not an income increase (i.e. FOX doesn't get paid more from the local cable companies), the pie gets split among more schools and the payout goes down (i.e. the equal share gets split among 16 teams instead of 14, but the pie is the same size). FOX isn't going to pay more for income that they're not getting. The ACC Network got a bump in income through households/carriage fees when Comcast agreed to carry the network. If a TV provider is paying money, it's for the media rights. Whether it's households or eyeballs or anything else, it's something accessible through media rights. If any TV service (FOX/ESPN/etc) pays tens of millions of dollars without getting more content, they either have a magic group of subscribers who will just let their bills go up, or they're about to fire some of their negotiators. FOX would be nuts to pay more without the media rights. The cable companies they get money from would be nuts to pay more. The subscribers would be nuts to pay more. The B1G would be nuts to pay USC and UCLA for income they're not getting. In the end, for TV, it's all about the media rights and how much they can get someone to pay for a product based on them. Everything else is just rearranging the pieces. (A side item is people watching "Pardon the Interruption" or one of the other talking head shows because they're on your team's network. One of the people who can watch more than 5 minutes of that will have to explain to me how that works) [/QUOTE]
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