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Plausible ACCN Revenue
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<blockquote data-quote="RonJohn" data-source="post: 230349" data-attributes="member: 2426"><p>The problem is that the whole system is a sham, which someday in the near future will fall down. It is estimated that ESPN(ESPN channel only, not includeing 2/u/SEC/etc) costs over $6 per subscriber to the cable/sat companies. It is estimated that SECN costs $1.40 per subscriber in the SouthEast and $0.25 elsewhere. Disney requires that all* cable/sat packages include ESPN and SEC.(The required basic packages don't include ESPN, but mostly just the locals) I would guess that less than half of all cable/sat subscribers watch ESPN. That means that those customers are subsidizing ESPN for those who do. A smaller percentage of subscribers in the SE watch the SECN, so much more than half are subsidizing the channel for the few who watch it. Outside of the SE, I would guess that less than 10% watch the SECN, so more than 90% are subsidizing a channel for the small minority.</p><p></p><p>ESPN has made a lot of money. The ACC could potentially make a lot of money with this business model. However, the business model is not sustainable. It is almost like a pyramid scheme. ESPN overpays for content. ESPN then charges customers and non-customers alike behind confidentiality agreements. Cable/Sat customers don't understand why/how their cable/sat bills keep going up and get upset about it. IIRC ESPN lost 7 million subscribers in 2014 and 2015. Also IIRC reports say that more than 60% of ESPN's revenue comes from subscribers. If ESPN cannot reduce the amount they pay for content or figure out different ways of getting revenue, they are not going to be able to keep the business open. They won't close up very soon, but 5 years or 10 years in the future things will get very interesting for them.</p></blockquote><p></p>
[QUOTE="RonJohn, post: 230349, member: 2426"] The problem is that the whole system is a sham, which someday in the near future will fall down. It is estimated that ESPN(ESPN channel only, not includeing 2/u/SEC/etc) costs over $6 per subscriber to the cable/sat companies. It is estimated that SECN costs $1.40 per subscriber in the SouthEast and $0.25 elsewhere. Disney requires that all* cable/sat packages include ESPN and SEC.(The required basic packages don't include ESPN, but mostly just the locals) I would guess that less than half of all cable/sat subscribers watch ESPN. That means that those customers are subsidizing ESPN for those who do. A smaller percentage of subscribers in the SE watch the SECN, so much more than half are subsidizing the channel for the few who watch it. Outside of the SE, I would guess that less than 10% watch the SECN, so more than 90% are subsidizing a channel for the small minority. ESPN has made a lot of money. The ACC could potentially make a lot of money with this business model. However, the business model is not sustainable. It is almost like a pyramid scheme. ESPN overpays for content. ESPN then charges customers and non-customers alike behind confidentiality agreements. Cable/Sat customers don't understand why/how their cable/sat bills keep going up and get upset about it. IIRC ESPN lost 7 million subscribers in 2014 and 2015. Also IIRC reports say that more than 60% of ESPN's revenue comes from subscribers. If ESPN cannot reduce the amount they pay for content or figure out different ways of getting revenue, they are not going to be able to keep the business open. They won't close up very soon, but 5 years or 10 years in the future things will get very interesting for them. [/QUOTE]
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