(05-09-2017 05:59 PM)bluephi1914 Wrote: This is an interesting read.
https://www.si.com/college-football/2017...acebook_si
I think the idea that the bubble will burst is based on a HUGE assumption. That there is a bubble to burst.
B1G got a fat raise after CUSA took a haircut.
You currently pay about $96 a year for ESPN. That puts them in around 90 million homes.
Europe's version of an ESPN package (with less year-round programming because they have fewer high interest sports and fewer total live games) will cost you $45 US (since the pound is weaker now) per month as a standalone subscription online.
At that price ESPN would need only 16 million subscribers to make what they were already pulling in under the carriage fee.
As a standalone subscription $17 a month for SEC Network with 5 million subscribers vs the 75 million today produces more revenue in fees than the current SEC Network.
ESPN is going to monetize what they own without a lot of hassle.
The problem ESPN has TODAY is that their current agreements with cable and satellite provide that if ESPN offers a standalone subscription that the cable and satellite providers can pull ESPN off the basic tier and offer it on higher packages instead. As those packages expire they will have greater freedom.
What will likely happen is ESPN will offer a bunch of different packages at a variety of price points. Potentially ESPN may end up making even more money but it will all go to the "must watch" content like regular season NFL, post-season in NFL, NBA, MLB, the biggest college draws and post-season.