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<blockquote data-quote="RonJohn" data-source="post: 883408" data-attributes="member: 2426"><p>People still won't believe that TV revenue is driven in a very large part by subscriber fees <em><strong>instead</strong></em> of ad revenue. ESPN's ad revenue has been as low as 21% of their total revenue. The picture below is the average of cable networks. In 2018 only 36% of all cable network revenue was from ads. Local over-the-air stations have had ad income decrease and cable/sat subscriber fees now make up about one third of their revenue.</p><p></p><p><img src="https://www.spglobal.com/_assets/images/marketintelligence/blog-images/net-ad-revenue-as-of-total-revenue.png" alt="" class="fr-fic fr-dii fr-draggable " style="" /></p><p></p><p>Eyeballs and ads matter, but with ESPN it only matters 20%, while number of TV households matters 80%. Adding Washington, Oregon, and Utah to the ACC would increase the subscriber base, but I don't know if it would be enough to match or increase the ACC payout. Adding teams based on current flashiness of the football team is not a good strategy. Team strengths rise and lower. Louisville was a very flashy football team when they joined the ACC. They aren't now. You shouldn't base a 20 year decision on which matchups you would like to see next year.</p></blockquote><p></p>
[QUOTE="RonJohn, post: 883408, member: 2426"] People still won't believe that TV revenue is driven in a very large part by subscriber fees [I][B]instead[/B][/I] of ad revenue. ESPN's ad revenue has been as low as 21% of their total revenue. The picture below is the average of cable networks. In 2018 only 36% of all cable network revenue was from ads. Local over-the-air stations have had ad income decrease and cable/sat subscriber fees now make up about one third of their revenue. [IMG]https://www.spglobal.com/_assets/images/marketintelligence/blog-images/net-ad-revenue-as-of-total-revenue.png[/IMG] Eyeballs and ads matter, but with ESPN it only matters 20%, while number of TV households matters 80%. Adding Washington, Oregon, and Utah to the ACC would increase the subscriber base, but I don't know if it would be enough to match or increase the ACC payout. Adding teams based on current flashiness of the football team is not a good strategy. Team strengths rise and lower. Louisville was a very flashy football team when they joined the ACC. They aren't now. You shouldn't base a 20 year decision on which matchups you would like to see next year. [/QUOTE]
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