RE: ACC Network
$3M total in perpetuity doesn't make much sense. It makes perfect sense for the first year.
What we know:
1. The ACC has had a healthy, but not universal launch. It's available to anyone who wants it via streaming services as well.
2. The first football game doesn't go until Thursday, the first game featuring Virginia teams is Saturday, and the first featuring Florida teams is the following Saturday. That's the real launch period. If we get through that period with no additional providers, then there may not be any more providers for a while. Maybe some movement at basketball season, or maybe no additional providers until their contracts run out.
3. ESPN is asking for enough money that it is a difficult add. So it's not like they're asking negligible carriage fees. If they were asking for a tiny number or much less than the SEC, then there wouldn't still be some hold outs.
4. ESPN has gotten the ACCN on every NEW contract they've signed, with little to no reported issues. From what I can tell, there hasn't been a single provider that has lost Disney channels do to a contentious carriage fee fight with Disney. In the worst case scenario, the ACC will have to wait through contracts, and Comcast is up in three years. I don't know when Dish and Cox are up, but in three years they'll have Comcast, and anyone else who comes up in that time.
5. I don't see how having universal carriage everywhere in 3-4 years adds up to $3M. That makes little sense to me.
That said, there are investments to pay down, so if the net addition to the budget is only $3M even beyond this year, that wouldn't be surprising.
I think the ACC absolutely should be embarrassed for missing the boat on conference networks 8-9 years ago, and making everything harder now by not seeing the value then. You can't get back the years of revenue they missed on.
However, I don't know what people want out of this rollout. The long rollout means they launch with more homes than the PAC, and more than the B1G network launched with. They have two choices, they can play hardball with higher pricing and the carriage fight be stretched out a bit, or they can give it away and be on everywhere. The long rollout means they can ask for high pricing, but still be widely available.
Or I guess they could just not do a network at all. Does that work for anybody?
I mean, you can only play with the hand you're dealt. You can't make ACC sports more popular than the SEC or B1G just because we wish it was. But I have a hard time looking at this as a failure based on anything so far.
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