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It's Official - ACCN coming to Comcast Xfinity!
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orangefan Offline
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Post: #1
It's Official - ACCN coming to Comcast Xfinity!
https://espnpressroom.com/us/press-relea...agreement/

Quote:Comcast and The Walt Disney Company announced today the companies have renewed their content carriage agreement and will continue to make Disney’s robust lineup of sports, news, kids, family and general entertainment programming available to Xfinity TV customers. Additionally, Comcast will distribute the ACC Network to its Xfinity customers, allowing fans and followers of the Atlantic Coast Conference to access the multiplatform network in the coming weeks.
11-30-2021 02:36 PM
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TexanMark Offline
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RE: It's Official - ACCN coming to Comcast Xfinity!
Just in time for football season

Seriously, every ACC team should make $4-5M every year going forward off this news.
11-30-2021 03:33 PM
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Schema Offline
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Post: #3
RE: It's Official - ACCN coming to Comcast Xfinity!
It is coming a tad late for the full basketball season, but at least it will be there for the last couple of months of the season for our alumni and fans with Xfinity.
11-30-2021 03:48 PM
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ken d Offline
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RE: It's Official - ACCN coming to Comcast Xfinity!
(11-30-2021 03:33 PM)TexanMark Wrote:  Just in time for football season

Seriously, every ACC team should make $4-5M every year going forward off this news.

That sounds like an awful lot to expect for me.
11-30-2021 04:53 PM
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curtis0620 Offline
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Post: #5
RE: It's Official - ACCN coming to Comcast Xfinity!
That's only $70M more. Should easily cover that with Comcast deal.
11-30-2021 05:00 PM
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ken d Offline
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RE: It's Official - ACCN coming to Comcast Xfinity!
Doesn't ESPN also get a cut of any new revenue?
11-30-2021 05:12 PM
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Hokie Mark Offline
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Post: #7
RE: It's Official - ACCN coming to Comcast Xfinity!
(11-30-2021 05:12 PM)ken d Wrote:  Doesn't ESPN also get a cut of any new revenue?

20M subs (Comcast only)
12 months
$1/mo <-- it's $0.50/mo for out-of-footprint, btw
0.8 %subs w/ ACCN
$192M/yr
$96M = half <-- ESPN's share
$6.4M = split other half 15 ways
Please feel free to edit any numbers you think are wrong
(This post was last modified: 11-30-2021 05:23 PM by Hokie Mark.)
11-30-2021 05:22 PM
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ken d Offline
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RE: It's Official - ACCN coming to Comcast Xfinity!
This is the part I don't understand. If the ACC and ESPN are to receive more revenue because their content will now be available to Comcast's 18 million subscribers, where does that money come from? Will Comcast customers now each pay more (than they do currently) to receive the ACCN? Does it come out of Comcast's profits? Or is it from increased advertising revenue that will go to ESPN?

The business side of all this is a mystery to me.
11-30-2021 05:49 PM
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Schema Offline
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Post: #9
RE: It's Official - ACCN coming to Comcast Xfinity!
(11-30-2021 05:49 PM)ken d Wrote:  This is the part I don't understand. If the ACC and ESPN are to receive more revenue because their content will now be available to Comcast's 18 million subscribers, where does that money come from? Will Comcast customers now each pay more (than they do currently) to receive the ACCN? Does it come out of Comcast's profits? Or is it from increased advertising revenue that will go to ESPN?

The business side of all this is a mystery to me.

I think Comcast determines where the majority of the money comes from. Disney has their bundle of networks and each of them have a specific cost. For a company, like Comcast, to carry any of them, they have to agree to carry all of them. I would guess that if the costs to carry all of them is substantially more than it was in the previous contract, they'll end up raising the rates for their customers, otherwise, they have to eat into their profits.

Now, I have no idea if things like advertising and streaming agreements affect the rates. I would guess that Disney would have to charge very similar rates to all providers though. I can't imagine they would be able to give one a much better rate than another, but that is an assumption.
11-30-2021 10:28 PM
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Wahoowa84 Offline
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Post: #10
RE: It's Official - ACCN coming to Comcast Xfinity!
(11-30-2021 10:28 PM)Schema Wrote:  
(11-30-2021 05:49 PM)ken d Wrote:  This is the part I don't understand. If the ACC and ESPN are to receive more revenue because their content will now be available to Comcast's 18 million subscribers, where does that money come from? Will Comcast customers now each pay more (than they do currently) to receive the ACCN? Does it come out of Comcast's profits? Or is it from increased advertising revenue that will go to ESPN?

The business side of all this is a mystery to me.

I think Comcast determines where the majority of the money comes from. Disney has their bundle of networks and each of them have a specific cost. For a company, like Comcast, to carry any of them, they have to agree to carry all of them. I would guess that if the costs to carry all of them is substantially more than it was in the previous contract, they'll end up raising the rates for their customers, otherwise, they have to eat into their profits.

Now, I have no idea if things like advertising and streaming agreements affect the rates. I would guess that Disney would have to charge very similar rates to all providers though. I can't imagine they would be able to give one a much better rate than another, but that is an assumption.

I found it interesting that Disney recently decided to end ESPN Classic. With all the different Disney Channels, it would be impossible to decipher whether the incremental payments to the ACCN are coming from Disney managing its content or Comcast maintaining subscriptions / rates or new advertisements.

As a Comcast subscriber, I know that I pay an incremental amount for an enhanced sports package…and Comcast rates are also always increasing.
11-30-2021 10:54 PM
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Hokie Mark Offline
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Post: #11
RE: It's Official - ACCN coming to Comcast Xfinity!
(11-30-2021 05:49 PM)ken d Wrote:  This is the part I don't understand. If the ACC and ESPN are to receive more revenue because their content will now be available to Comcast's 18 million subscribers, where does that money come from? Will Comcast customers now each pay more (than they do currently) to receive the ACCN? Does it come out of Comcast's profits? Or is it from increased advertising revenue that will go to ESPN?

The business side of all this is a mystery to me.

Comcast is raising prices $3/month.
The ACCN gets $1/month.
ESPN/Disney also increased some.
12-01-2021 07:23 AM
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Wahoowa84 Offline
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Post: #12
RE: It's Official - ACCN coming to Comcast Xfinity!
(12-01-2021 07:23 AM)Hokie Mark Wrote:  
(11-30-2021 05:49 PM)ken d Wrote:  This is the part I don't understand. If the ACC and ESPN are to receive more revenue because their content will now be available to Comcast's 18 million subscribers, where does that money come from? Will Comcast customers now each pay more (than they do currently) to receive the ACCN? Does it come out of Comcast's profits? Or is it from increased advertising revenue that will go to ESPN?

The business side of all this is a mystery to me.

Comcast is raising prices $3/month.
The ACCN gets $1/month.
ESPN/Disney also increased some.

Comcast is based out of Philly. This is a good article on Comcast’s forthcoming price increases for cable and internet services…

https://www.inquirer.com/business/comcas...11201.html

My interpretation, Comcast is happy to maintain its 44% operating margin (profits) on home cable & internet services. Consumer prices are going up by 3%. Sports fans get a little higher increase. Most of their revenue stream has already moved to broadband/internet service. Cable service is just a cash cow…they are aggressively milking-it until technology makes it obsolete.
12-01-2021 08:44 AM
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ken d Offline
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RE: It's Official - ACCN coming to Comcast Xfinity!
(12-01-2021 08:44 AM)Wahoowa84 Wrote:  
(12-01-2021 07:23 AM)Hokie Mark Wrote:  
(11-30-2021 05:49 PM)ken d Wrote:  This is the part I don't understand. If the ACC and ESPN are to receive more revenue because their content will now be available to Comcast's 18 million subscribers, where does that money come from? Will Comcast customers now each pay more (than they do currently) to receive the ACCN? Does it come out of Comcast's profits? Or is it from increased advertising revenue that will go to ESPN?

The business side of all this is a mystery to me.

Comcast is raising prices $3/month.
The ACCN gets $1/month.
ESPN/Disney also increased some.

Comcast is based out of Philly. This is a good article on Comcast’s forthcoming price increases for cable and internet services…

https://www.inquirer.com/business/comcas...11201.html

My interpretation, Comcast is happy to maintain its 44% operating margin (profits) on home cable & internet services. Consumer prices are going up by 3%. Sports fans get a little higher increase. Most of their revenue stream has already moved to broadband/internet service. Cable service is just a cash cow…they are aggressively milking-it until technology makes it obsolete.

That's pretty steep. They saw a decline from 2020 to 2021 to close to a million subscribers. I wonder if this will drive more away.
12-01-2021 11:12 AM
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Wahoowa84 Offline
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Post: #14
RE: It's Official - ACCN coming to Comcast Xfinity!
(12-01-2021 11:12 AM)ken d Wrote:  
(12-01-2021 08:44 AM)Wahoowa84 Wrote:  
(12-01-2021 07:23 AM)Hokie Mark Wrote:  
(11-30-2021 05:49 PM)ken d Wrote:  This is the part I don't understand. If the ACC and ESPN are to receive more revenue because their content will now be available to Comcast's 18 million subscribers, where does that money come from? Will Comcast customers now each pay more (than they do currently) to receive the ACCN? Does it come out of Comcast's profits? Or is it from increased advertising revenue that will go to ESPN?

The business side of all this is a mystery to me.

Comcast is raising prices $3/month.
The ACCN gets $1/month.
ESPN/Disney also increased some.

Comcast is based out of Philly. This is a good article on Comcast’s forthcoming price increases for cable and internet services…

https://www.inquirer.com/business/comcas...11201.html

My interpretation, Comcast is happy to maintain its 44% operating margin (profits) on home cable & internet services. Consumer prices are going up by 3%. Sports fans get a little higher increase. Most of their revenue stream has already moved to broadband/internet service. Cable service is just a cash cow…they are aggressively milking-it until technology makes it obsolete.

That's pretty steep. They saw a decline from 2020 to 2021 to close to a million subscribers. I wonder if this will drive more away.

Comcast has financially protected itself from cable TV cord cutting. Xfinity’s future is internet services…no one is eliminating the internet. Streaming (an alternative to cable TV) is built on faster internet; work-from-home thrives with more internet speed; and on-line activities are all dependent on the internet. The focus on cable TV cord cutting misses the natural evolution of technology.

Cable TV is available for the well-heeled. Comcast is going to continue raising cable TV rates (regardless of ACCN-type start-ups) as content providers (including NBC/Peacock or Hulu which they own) transition to new business models. Cord-cutting is a predictable variable in their pricing decisions…the objective is profit maximization until the new technology takes hold. Cable TV is Comcast’s cash cow because the consumers who want it have money…and there aren’t going to be many new entrants into the cable TV delivery system (because the entire business model is in a waning phase).
12-01-2021 12:26 PM
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Hokie Mark Offline
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RE: It's Official - ACCN coming to Comcast Xfinity!
(12-01-2021 11:12 AM)ken d Wrote:  
(12-01-2021 08:44 AM)Wahoowa84 Wrote:  
(12-01-2021 07:23 AM)Hokie Mark Wrote:  
(11-30-2021 05:49 PM)ken d Wrote:  This is the part I don't understand. If the ACC and ESPN are to receive more revenue because their content will now be available to Comcast's 18 million subscribers, where does that money come from? Will Comcast customers now each pay more (than they do currently) to receive the ACCN? Does it come out of Comcast's profits? Or is it from increased advertising revenue that will go to ESPN?

The business side of all this is a mystery to me.

Comcast is raising prices $3/month.
The ACCN gets $1/month.
ESPN/Disney also increased some.

Comcast is based out of Philly. This is a good article on Comcast’s forthcoming price increases for cable and internet services…

https://www.inquirer.com/business/comcas...11201.html

My interpretation, Comcast is happy to maintain its 44% operating margin (profits) on home cable & internet services. Consumer prices are going up by 3%. Sports fans get a little higher increase. Most of their revenue stream has already moved to broadband/internet service. Cable service is just a cash cow…they are aggressively milking-it until technology makes it obsolete.

That's pretty steep. They saw a decline from 2020 to 2021 to close to a million subscribers. I wonder if this will drive more away.

They may lose more subscribers, but I doubt a $3/month increase will be the reason.
12-01-2021 01:04 PM
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