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Does ESPN FOX deal indicate the desire to block other streaming
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Win5002 Offline
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Does ESPN FOX deal indicate the desire to block other streaming
Its interesting to look at the ramification on college sports. Is the ESPN purchase of FOX regionals show the desire to consolidate the 4 leagues or stabilize the current 5 leagues well before 2024 and extend their deals to block out further streaming competition from Netflix, Google, Amazon, etc?

If that is the case maybe there is an appetite for larger than 64/66 teams in Power leagues because there is a larger desire for content due to new providers entering the market.

IF this happens does CFB continue the survival of the fittest approach to their conferences or does it decide to form a P4 or P5 level and negotiate everything as 1 from T1 to T3 revenues realizing if they put their teams in their most natural fits/rivalries they can maximize the total revenue?

Or is there still the competition but ESPN is willing to pay enough for a new deal with longer GOR before other streaming services can get into the game to make it happen and get some leagues to move forward with changes before other streaming services can get into the game ?

Is this about a balanced approach to sports rights the professional sports and college sports or is this a lot more about the professional sports and we are thinking too much from the college sports angle?
(This post was last modified: 12-19-2017 03:10 PM by Win5002.)
12-19-2017 03:08 PM
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JRsec Offline
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RE: Does ESPN FOX deal indicate the desire to block other streaming
(12-19-2017 03:08 PM)Win5002 Wrote:  Its interesting to look at the ramification on college sports. Is the ESPN purchase of FOX regionals show the desire to consolidate the 4 leagues or stabilize the current 5 leagues well before 2024 and extend their deals to block out further streaming competition from Netflix, Google, Amazon, etc?

If that is the case maybe there is an appetite for larger than 64/66 teams in Power leagues because there is a larger desire for content due to new providers entering the market.

IF this happens does CFB continue the survival of the fittest approach to their conferences or does it decide to form a P4 or P5 level and negotiate everything as 1 from T1 to T3 revenues realizing if they put their teams in their most natural fits/rivalries they can maximize the total revenue?

Or is there still the competition but ESPN is willing to pay enough for a new deal with longer GOR before other streaming services can get into the game to make it happen and get some leagues to move forward with changes before other streaming services can get into the game ?

Is this about a balanced approach to sports rights the professional sports and college sports or is this a lot more about the professional sports and we are thinking too much from the college sports angle?

To be sure it was a nice perk that ESPN wound up with so much regional Professional sports content. But what is it that ESPN has specialized in broadcasting? College sports, which by the way hasn't suffered quite the decline as MLB, the NBA, and may not be quite as subject to a steep decline as the NFL might be should the anthem protests, CTE issues, and over politicization continues.

I think the legitimate question is whether this move will create the need for more content or not? If the RSN's are utilized then we may need more content. If they are pared down once ESPN takes them over then maybe not.

I do think a P4 serves network interests the best long term.

So if we assume a P4 with no extra demand for content then 64 schools will be plenty, maybe even 60 in a P3. But if we need more then 72 is the most likely number. But even in a P4 of 18 schools each the SEC and B1G will likely be comprised of 18 each of the present 65. Fill in would happen for the ACC and PAC/B12 survivor. The money makes a difference for the SEC and Big 10 and the fact that there are more P5 schools in proximity to our conferences.

I think a P4 is likely because the current sets of contracts all have renegotiation clauses. So if we consolidate to 4 conferences and we all have additions then ESPN can extend contracts before they expire and that will cut streamers out of the loop until around 2040. That's why I think it's highly likely we go that route. To facilitate that we likely have to find P homes for the existing 65 and include the B.Y.U.'s, Connecticuts, and San Diego States of the world. So 72 might provide the break we need financially to leave the rest of the G5 behind.
12-19-2017 03:35 PM
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AllTideUp Offline
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RE: Does ESPN FOX deal indicate the desire to block other streaming
I definitely think that between ESPN's superior organizational structure and all the college content they have under their roof, the RSNs will probably flourish in a way we haven't seen. I wouldn't even be shocked to see ESPN purchase additional RSNs from other companies in the future.

I do think the pro sports are important as they secure a different audience by and large and will help anchor ESPN exposure in certain markets. Especially during baseball season, you can rely on viewers to show up every night and that's relevant if for no other reason than college sports takes a break. Additionally, with the growth of MLS and soccer in general, it provides greater ability to capitalize on that trend.

Personally, I think the best way to utilize the RSNs when it comes to college content is to make sure the broadcasts are as local as possible. That way ESPN can create a new revenue stream with an 'out of market' college package. There will probably be some push back from the schools on that as they desire primarily to have their school advertised to a national audience. That makes it easier to recruit students. Pro teams don't have to worry about things like that when it comes to distribution.

It may pay off at that point to expand the ranks of the Power leagues in order to create more options for broadcasting and more appeal for viewers around the country as more games could be branded with the Power label. Expansion and the subsequent revenue from the 'out of market' package could help strike a balance between national games and local games. Maybe everyone will be happy with that.
12-19-2017 05:11 PM
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AllTideUp Offline
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RE: Does ESPN FOX deal indicate the desire to block other streaming
But overall, I think the purchase of 21st Century Fox was more about securing content for streaming services in the future. So essentially, yes, this comes down to Disney competing with Netflix, Amazon, Google, Facebook, and whoever else wants to make a play.

Cutting those entities off from sports broadcasting to a significant degree is a part of the plan, I would think. So is making sure they've got plenty of movies and TV shows people want.
12-19-2017 05:16 PM
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JRsec Offline
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RE: Does ESPN FOX deal indicate the desire to block other streaming
(12-19-2017 05:16 PM)AllTideUp Wrote:  But overall, I think the purchase of 21st Century Fox was more about securing content for streaming services in the future. So essentially, yes, this comes down to Disney competing with Netflix, Amazon, Google, Facebook, and whoever else wants to make a play.

Cutting those entities off from sports broadcasting to a significant degree is a part of the plan, I would think. So is making sure they've got plenty of movies and TV shows people want.

Not jut streaming services, but ownership of movie lines, characters, and merchandising rights. The production studios were a plus, but considering how Disney really wants the global rights to Star Wars they had to buyout FOX to get rights to the very first one.

The RSN's were a perk that ESPN I'm sure has plans to utilize. But in the end the serendipity of T3 rights to the Big 12 will probably help them finish the shaping of the college football landscape. So we'll wait and see.
12-19-2017 05:50 PM
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