Home
Articles
Photos
Interviews
Forums
New posts
Search forums
Georgia Tech Recruiting
Dashboard
What's new
New posts
New profile posts
Latest activity
Chat
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Georgia Tech Athletics
Georgia Tech Football
Conference Realignment
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="RonJohn" data-source="post: 997582" data-attributes="member: 2426"><p>Everyone has accepted the belief that carriage fees don't matter any more, and that ratings are the only thing that affects value. I have seen estimates that the difference for the Big Ten Network for in market vs out of market is $1.40 per subscriber. I'm not sure about any of the numbers, but believe they are within an order of magnitude. There are roughly 80 million pay TV subscribers. That is about 24% of the population. In Florida, that would mean there are about 5 million TV subscribers. That means that adding a team in Florida could add about $7 million per month to carriage fees for the Big Ten Network. Big10 is a 39% stakeholder in the network. I don't think there would be additional costs to the network to increase per subscriber fees for a new in network market, but let's assume only 80% of that increase fee is profit. That would be $2.2 million additional profit for the Big10 per month for adding a school from Florida. ($26 million per year) Actual paying subscribers per area, actual costs and difference between in-market and out of market, splits of that between Fox and Big10, numbers are not easily available. I tried to be conservative, so I think I am at the low end of what the Big10 would make from adding a school in Florida.</p><p></p><p>That additional revenue wouldn't be tied to the GOR. However, I suspect the TV companies would fight paying the extra fee if a Florida school was in the Big10, but their games were not broadcast as part of the Big10. That doesn't add up to $60 million per year, but it would be in addition to whatever Fox/CBS/NBC were willing to pay for additional members. FSU won't be able to get a full share from the Big10, probably until the current TV contract expires. Also, I think it is worth noting that an additional Florida school joining the SEC would not provide a similar bump in revenue for the SEC Network. Florida is already in-market for the SEC. FSU definitely wouldn't be able to get a full share from the SEC.</p></blockquote><p></p>
[QUOTE="RonJohn, post: 997582, member: 2426"] Everyone has accepted the belief that carriage fees don't matter any more, and that ratings are the only thing that affects value. I have seen estimates that the difference for the Big Ten Network for in market vs out of market is $1.40 per subscriber. I'm not sure about any of the numbers, but believe they are within an order of magnitude. There are roughly 80 million pay TV subscribers. That is about 24% of the population. In Florida, that would mean there are about 5 million TV subscribers. That means that adding a team in Florida could add about $7 million per month to carriage fees for the Big Ten Network. Big10 is a 39% stakeholder in the network. I don't think there would be additional costs to the network to increase per subscriber fees for a new in network market, but let's assume only 80% of that increase fee is profit. That would be $2.2 million additional profit for the Big10 per month for adding a school from Florida. ($26 million per year) Actual paying subscribers per area, actual costs and difference between in-market and out of market, splits of that between Fox and Big10, numbers are not easily available. I tried to be conservative, so I think I am at the low end of what the Big10 would make from adding a school in Florida. That additional revenue wouldn't be tied to the GOR. However, I suspect the TV companies would fight paying the extra fee if a Florida school was in the Big10, but their games were not broadcast as part of the Big10. That doesn't add up to $60 million per year, but it would be in addition to whatever Fox/CBS/NBC were willing to pay for additional members. FSU won't be able to get a full share from the Big10, probably until the current TV contract expires. Also, I think it is worth noting that an additional Florida school joining the SEC would not provide a similar bump in revenue for the SEC Network. Florida is already in-market for the SEC. FSU definitely wouldn't be able to get a full share from the SEC. [/QUOTE]
Insert quotes…
Verification
How many points did Georgia Tech score against Cumberland in 1916?
Post reply
Home
Forums
Georgia Tech Athletics
Georgia Tech Football
Conference Realignment
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…
Top