(04-17-2018 02:47 PM)Hokie Mark Wrote:  

(04-17-2018 02:05 PM)JRsec Wrote:  ...If they are indeed bundled the SEC will getting out of footprint rates for the ACC portion of the footprint and vice versa. And what else that has been circulating that is untrue is that the rate for the two networks will be the same. It won't. So they will be grouped together for mutual benefit, but each conference will gain only more carriage via the bundle. And each conference will only keep the appropriate rate for their own footprint and for carriage beyond their footprint.

The ACC's in footprint rate hasn't been released yet. I expect it to be way higher than the 11 cents for the PAC aggregate and probably under the .48 cents for the Big 10 aggregate. The SEC's aggregate rate (out of footprint and within footprint average) is .74 cents. Most of the claims of huge dollars for the ACC have mistakenly taken the SEC's rate of .74 cents and multiplied it by the number of cable households within the ACC's footprint. It won't work that way. They'll get a decent rate, but it will be multiplied by the number of households within the ACC footprint buying the cable channel, which will include those who buy the SECN. And in turn the SECN will continue to get their rate inside the SEC's footprint, but the ACCN will get to claim out of footprint rates for those buying the networks there.

So it will benefit both conferences without really affecting the rates of the other. It might be argued that it is an added burden to the subscribers, but both channels will be on the same tier so it doesn't reallly affect the consumer.

In reality what will be happening is that ESPN will be paying both conferences a very slight overall increase in order to try to increase the penetration of both conference networks. Now how much the rate will be for the SEC in ACC footprint or the ACC's rate within the SEC footprint will vary from the traditional out of footprint rates paid for subscriptions in the rest of the nation I haven't heard. It may not actually vary at all. The issue here is more of an in house ESPN issue for increasing exposure.

Well, keep in mind that the SECN gets $0.74 basically nowhere. IIRC, they get $1.30 in-state and $0.25 out of state, for an AVERAGE of $0.74. I wouldn't be surprised* if the ACC gets those same rates, just in different states (obviously).

* on the other hand, it's possible that the ACC may get less - it all depends on what the market is willing to bear.

You do understand the terms aggregate and average which in this case are virtually interchangeable? The increase for both will be in guaranteed carriage. Then depending upon the rates you can figure what that means monetarily.