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Expansion Talk 2021
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<blockquote data-quote="RonJohn" data-source="post: 822655" data-attributes="member: 2426"><p>They get more money for the secn than the ACC gets for the ACCN. Those numbers aren't public, but the sec supposedly got $0.25 from TV subscribers in non-sec areas and up to $1.40 for subscribers in sec areas in 2014. Those prices only go up. There are somewhere around 80 million pay TV subscribers in the US. Not trying to be anywhere close to exact numbers, but just speculating: If 60 million of those are above the lowest TV package(which is probably low), that means that the secn earns at least $15 million per month or $180 million per year using costs from 2014. The Southeast has about 27 percent of the US population. If you estimate that 20 percent are in an sec market, then the secn earns an extra $13.8 million per month or $167 million per year. (20% * 60 * $1.15) So the secn alone earns around $350 million per year for ESPN. That doesn't include the ESPN subscriber revenue portion that is allocated to the sec. That total ESPN subscriber revenue is estimated around $8 billion. For the new TV deal, I think ESPN was fighting to cut CBS out of sec carriage, so the sec was able to negotiate even more money out of them.</p><p></p><p>I have said this before, but that business model is crumbling. The great majority of ESPN's revenue comes from subscriber revenue instead of ads or anything else to do with ratings. The number of TV subscribers (traditional or over-the-top) is declining. It will be very difficult to ESPN to get the same revenue out of sports enthusiasts that they were able to get out of forcing non-sports enthusiasts to subsidize sports. I have been surprised that the model has lasted this long. I will be very surprised if the business model is still in effect in 2035 when the ACC contract ends.</p></blockquote><p></p>
[QUOTE="RonJohn, post: 822655, member: 2426"] They get more money for the secn than the ACC gets for the ACCN. Those numbers aren't public, but the sec supposedly got $0.25 from TV subscribers in non-sec areas and up to $1.40 for subscribers in sec areas in 2014. Those prices only go up. There are somewhere around 80 million pay TV subscribers in the US. Not trying to be anywhere close to exact numbers, but just speculating: If 60 million of those are above the lowest TV package(which is probably low), that means that the secn earns at least $15 million per month or $180 million per year using costs from 2014. The Southeast has about 27 percent of the US population. If you estimate that 20 percent are in an sec market, then the secn earns an extra $13.8 million per month or $167 million per year. (20% * 60 * $1.15) So the secn alone earns around $350 million per year for ESPN. That doesn't include the ESPN subscriber revenue portion that is allocated to the sec. That total ESPN subscriber revenue is estimated around $8 billion. For the new TV deal, I think ESPN was fighting to cut CBS out of sec carriage, so the sec was able to negotiate even more money out of them. I have said this before, but that business model is crumbling. The great majority of ESPN's revenue comes from subscriber revenue instead of ads or anything else to do with ratings. The number of TV subscribers (traditional or over-the-top) is declining. It will be very difficult to ESPN to get the same revenue out of sports enthusiasts that they were able to get out of forcing non-sports enthusiasts to subsidize sports. I have been surprised that the model has lasted this long. I will be very surprised if the business model is still in effect in 2035 when the ACC contract ends. [/QUOTE]
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