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<blockquote data-quote="RonJohn" data-source="post: 812307" data-attributes="member: 2426"><p>ESPN's business model for the last 30 years or more hasn't been based on ratings or viewership. It has been based solely on number of TV subscribers. FSU and Clemson probably do provide more eyes on TV sets, but that is only about 15% of ESPN's revenue. For the ACC Network, Greenville, SC (Clemson's TV market) means much less than Atlanta (GT's TV market). I have complained about ESPN's business model and their tactics(They basically force the 60% of people who don't watch sports to subsidize those who do), but they are what has been driving revenue for NCAA athletics. That business model seems to be falling apart as people cut the cord. All of the conferences should be trying to predict what the next 10 years will be like and prepare for that.</p><p></p><p>The ACC does distribute bowl money and NCAA tourney money thru the conference, but it isn't even. If you go to a big bowl, your cut of the bowl money is bigger. It isn't purely proportional to the money the bowl pays, but it is different than what other teams get. If you go deep in the NCAA tournament, you get a larger cut of the NCAA tourney money. Once again, it isn't a one-for-one to what the NCAA pays out, but it is greater than what other teams get.</p><p></p><p>I think there is a lot of confusion in how Sports TV contracts have been working for the last few decades. Subscriber fees have been much, much, much more important than advertisement. ESPN/ABC have put the marquee games on ABC prime time Saturday night in order to sell high value ads. However, the majority of the games during the day and even on more minor channels at night, the ads probably only pay the production costs of carrying the game. They want to have subscribers first, then except for a few marquee games, they want to spend as little as possible to get enough content on TV so that subscribers don't drop their subscriptions, and ESPN's channels don't become irrelevant. It is a house of cards they have been playing in, and that house of cards is imploding.</p></blockquote><p></p>
[QUOTE="RonJohn, post: 812307, member: 2426"] ESPN's business model for the last 30 years or more hasn't been based on ratings or viewership. It has been based solely on number of TV subscribers. FSU and Clemson probably do provide more eyes on TV sets, but that is only about 15% of ESPN's revenue. For the ACC Network, Greenville, SC (Clemson's TV market) means much less than Atlanta (GT's TV market). I have complained about ESPN's business model and their tactics(They basically force the 60% of people who don't watch sports to subsidize those who do), but they are what has been driving revenue for NCAA athletics. That business model seems to be falling apart as people cut the cord. All of the conferences should be trying to predict what the next 10 years will be like and prepare for that. The ACC does distribute bowl money and NCAA tourney money thru the conference, but it isn't even. If you go to a big bowl, your cut of the bowl money is bigger. It isn't purely proportional to the money the bowl pays, but it is different than what other teams get. If you go deep in the NCAA tournament, you get a larger cut of the NCAA tourney money. Once again, it isn't a one-for-one to what the NCAA pays out, but it is greater than what other teams get. I think there is a lot of confusion in how Sports TV contracts have been working for the last few decades. Subscriber fees have been much, much, much more important than advertisement. ESPN/ABC have put the marquee games on ABC prime time Saturday night in order to sell high value ads. However, the majority of the games during the day and even on more minor channels at night, the ads probably only pay the production costs of carrying the game. They want to have subscribers first, then except for a few marquee games, they want to spend as little as possible to get enough content on TV so that subscribers don't drop their subscriptions, and ESPN's channels don't become irrelevant. It is a house of cards they have been playing in, and that house of cards is imploding. [/QUOTE]
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