Was the LHN converted into a Trojan Horse?
I do not purport this to be anything other than speculation.
The following thoughts occurred to me this morning. Is there another motivation for the LHN being added to almost every cable/satellite provider during the same time period the SEC Network rapidly acquired impressive carriage rights contracts across the country instead of the obvious desire to get nationwide on as many carriers as possible?
The LHN's multi-year struggle to acquire carriage contracts somewhat quickly came to an end in 2014 as the LHN apparently scored media contracts one after another. Such success simply could have resulted after the time necessary to negotiate such deals. The timing likely was enhanced by Disney bundling the LHN with the SECN and other Mouse properties during such carriage negotiations.
But was there another motivation for the LHN entering into such contracts? The reason for such speculation is that there were reports during such time that the LHN entered into media contracts where it received zero carriage fees in states outside the Big 12 footprint. (I'll let other posters take the time to find them as I have to get to work, but I do remember such article(s) stating such after the 2014 contracts were announced.
Now entering such agreements for little to no money could have been a smart decision on the part of the LHN. Once you get on the channel list of a provider the LHN would be able to establish its viewership and negotiate higher fees when it is time to negotiate after the first contract ends. I definitely can see that, but the now obvious result is that ESPN now has another network with nationwide distribution across all major providers. The hard work has been done. The next question is how much value could this network provide? What is its greatest potential?
I do not assert the it was ever the original plan for ESPN to have the LHN be anything other than a Texas network and that ESPN has tried to get national media provider contracts that maximize the value of the LHN, if not short term, then long term. But look what ESPN now has; a national sports network that no one could really deny would generate much more money when its new media contracts are renegotiated at the end of their terms if such network had more sports content.
When such contracts end, which I presume would be in only a few short years, could we see a change in content that broadens out beyond Texas sports? Consider the profit a renegotiated LHN that contains only Texas content. Now consider the profit of something much more ambitious, a SEC Network West.
Can anyone really deny ESPN would make much more money with an SEC Network West comprised of the media content of the current SEC West schools, minus Bama and Auburn, plus Mizzou from the East and new members UT and OU? The current SECN would become the SEC Network East, and such network not having to negotiate getting a channel on each provider, just how much more money the network would be paid. Tremendous profits. Easy tremendous profits.
What about Texas? Why would they do this?
First, the writing could be on the wall that there will not be much more money coming in the next contract negotiations outside of the Big 12 footprint, and maybe inside of it, for the LHN. The providers have made clear they do not want to encourage more networks for individual schools in a world where they believe they are already paying too much for sports content networks. I believe a line was drawn where the networks said to ESPN that they would broadcast the LHN but we are not going to pay any considerable sum to do so.
Second, I do not believe Texas is as happy to be in Big 12 as many believe. Such does not come from just reading Texas sports message boards, though if one does so a certain noticeable angst is palpable.
Third, more money. More money is always a plus, despite UT being the richest program in the country, for now. I say for now because the differences in total revenue between UT and other powerful brands such as Ohio State, Alabama and others will likely be narrowed, and maybe past, in the age of the BTN and the SECN as such continue to grow over the years.
Fourth, and this is the strongest reason, exposure. It is my opinion UT has been horrified by the viewership numbers of UT football games compared to the average quality SEC matchup, and especially the numbers TAMU get even when they were having a somewhat average/below average year. Exposure, not more money, is what is most important to Texas. That was the primary reason for them creating their own network. Having millions of fewer viewers cannot be acceptable to the Longhorns. It is against everything they are about and contrary to good business sense.
Fifth, UT gets to enter the SEC with pride. While TAMU could always say, "UT followed us into the SEC", Texas could respond be saying, "Yes, but we brought a network with us".
Finally, as to both UT, OU and ESPN, the shear enormous potential of such a network could make such a network conversion happen, maybe inevitable. All reason against it pales in comparison. If OU's grant of rights to Fox prevents them from going at this time, Kansas stands there for the taking.
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