(04-07-2020 03:58 AM)Erictelevision Wrote: I find it hard to believe that someone in CA can't turn on their TV and watch the SEC or B1G network. I live near Boston and I have the PAC-12 network on my cable system.
They probably can, if they have the "sports tier" package, where the BTN, SECN, CBS-SN, Tennis Channel, Deportes Mundial Futbol (made up), and a half-dozen out-of-market RSNs come as a bundle.
But BTN and SECN are getting fewer subscribers that way from 10 million Bay Area households than BTN does from Ohio's 10M or Florida's 10M. And they're getting less revenue per subscriber. (The 10M number is a vague approximation).
The footprint money is in 1) being on basic cable 2) for a premium price. that requires leverage, in the form of angry fans who will cancel / switch their cable if they can't see their favorite content.
That's why Fox News is so much more valuable than CNN. Even in months and years where CNN gets higher ratings, CNN's customers can switch to MSNBC or locally-run cable news channels and get a basically similar product. Fox News viewers can't really get their Fox News experience from an alternate source. That lets Fox News command a premium price.
The model is to have a premium product with a very dedicated customer base, who can and will credibly threaten their cable providers if they are denied the product. Fox News, My Local Team, NFL national games. That's why MLB migrated from local TV to local cable in the first place--they had a product that people would, if they had to, pay a monthly fee for. Then you can use that as leverage with the cable company--you won't sign for Extended Tier, you want to be on Basic Tier. You use your fans to leverage the cable company to basically levy a tax on every subscriber.
As cord-cutting starts to bite, this model is starting to break down. Before, basic cable customers weren't especially price sensitive--they'd grumble, but there weren't great alternatives to having basic cable and 40-100 channels of content. Now, all you REALLY need your cable provider for is the actual cable (wire) and the internet, which delivers your Netflix, Youtube, Amazon Prime, any number of websites with video, etc.
In this environment, charging every subscriber in the NY area an extra $2 a month or whatever so that Rutgers fans and 20- and 30-something midwestern expats in NY don't revolt isn't as attractive a proposition. But BTN is tied in with SNY (Yankees games) and Fox News, so the cable providers aren't ready to go to the mattresses yet.