A good read on the BTN

[MikeyJoe]

Good information everyone discussing Big Ten expansion should keep in mind.

(Sourced from Rittenberg's blog (http://espn.go.com/blog/bigten/post/_/id/12311/big-ten-expansion-roundup-week-2)).

http://www.columbiatribune.com/news/2010/may/09/big-tens-behemoth/?sports

Some interesting figures:

The conference takes in approximately 70 cents per subscription each month from within the Big Ten footprint, a figure that’s been widely reported and confirmed by Mediaweek Senior Editor Anthony Cruppi. Outside the footprint, in states such as Missouri and Nebraska, BTN subscriptions deliver about a dime per month to the conference.

From there, the math is simple: As CBSSports.com’s Dennis Dodd figured last month, if Missouri should leave the Big 12 for the Big Ten, adding the state and its 2.2 million households to the Big Ten footprint, the conference could increase its monthly Missouri intake from $220,000 to $1.54 million.

That formula also explains why Rutgers or Syracuse could line the Big Ten coffers with East Coast cash. Cablevision, the super-sized carrier that brings cable to New York, New Jersey and Connecticut, agreed to offer the BTN to its subscribers last fall.
This helps explain the allure of schools like Missouri (with it's 2.2 million households) or the East Coast states. The BTN already has penetration in those states - it's about getting those states added to the conference "footprint", which could result in a seven-fold increase in revenue in those states.

Also it's a good read on how much more successful than network has been than anyone would have thought. In the black after year two, a 30% increase in advertising revenue year over year, etc.

[Debit One]

The conference takes in approximately 70 cents per subscription each month from within the Big Ten footprint, a figure that’s been widely reported and confirmed by Mediaweek Senior Editor Anthony Cruppi. Outside the footprint, in states such as Missouri and Nebraska, BTN subscriptions deliver about a dime per month to the conference.

The subscription fees are why cable-based deals can pay more than those from network broadcasters.

Cable = subscription fees + advertising
Over the air network = advertising only

It's why CBS had to take on Turner in order to keep the NCAA BB tournament. It's why NBC's "mammoth" deal with Notre Dame only pays them $9M per year, while the Big Ten network delivers more to each of its conference schools.

The Big Ten's formation of the TV network was a stroke of genius. They hold all of the cards.

[newsbreaker]

The Big Ten's formation of the TV network was a stroke of genius. They hold all of the cards.

You have all the economics right, but remember that at the time it was conceived the BTN was seen as an enormous gamble, and the fact that they have reached profitability so quickly is nothing short of stunning.

It's easy to look at cable and think it's so easy. Collect ad dollars, collect subscriber fees, profit! History shows that it isn't so straight forward, however.

The SEC has examined a cable network and passed on the idea, opting for a version of the "SEC Network" that looks a lot more like "ESPN+" than "Big Ten Network." The boys in Chicago took a big gamble, but without question, it has been an enormously profitable one.

[Pseudonym]

The Big Ten's formation of the TV network was a stroke of genius. They hold all of the cards.

You have all the economics right, but remember that at the time it was conceived the BTN was seen as an enormous gamble, and the fact that they have reached profitability so quickly is nothing short of stunning.

It's easy to look at cable and think it's so easy. Collect ad dollars, collect subscriber fees, profit! History shows that it isn't so straight forward, however.

The SEC has examined a cable network and passed on the idea, opting for a version of the "SEC Network" that looks a lot more like "ESPN+" than "Big Ten Network." The boys in Chicago took a big gamble, but without question, it has been an enormously profitable one.

True, and I'll be the first to admit at the time that I didn't think it would work so well.

[Uff Da]

Good information everyone discussing Big Ten expansion should keep in mind.

(Sourced from Rittenberg's blog (http://espn.go.com/blog/bigten/post/_/id/12311/big-ten-expansion-roundup-week-2)).

http://www.columbiatribune.com/news/2010/may/09/big-tens-behemoth/?sports

Some interesting figures:

The conference takes in approximately 70 cents per subscription each month from within the Big Ten footprint, a figure that’s been widely reported and confirmed by Mediaweek Senior Editor Anthony Cruppi. Outside the footprint, in states such as Missouri and Nebraska, BTN subscriptions deliver about a dime per month to the conference.

From there, the math is simple: As CBSSports.com’s Dennis Dodd figured last month, if Missouri should leave the Big 12 for the Big Ten, adding the state and its 2.2 million households to the Big Ten footprint, the conference could increase its monthly Missouri intake from $220,000 to $1.54 million.

That formula also explains why Rutgers or Syracuse could line the Big Ten coffers with East Coast cash. Cablevision, the super-sized carrier that brings cable to New York, New Jersey and Connecticut, agreed to offer the BTN to its subscribers last fall.
This helps explain the allure of schools like Missouri (with it's 2.2 million households) or the East Coast states. The BTN already has penetration in those states - it's about getting those states added to the conference "footprint", which could result in a seven-fold increase in revenue in those states.

Also it's a good read on how much more successful than network has been than anyone would have thought. In the black after year two, a 30% increase in advertising revenue year over year, etc.

The BTN has come a long way. I remember that first year, there were very few commercials and I think they had the same promo's running all the time.

[Pseudonym]

Good information everyone discussing Big Ten expansion should keep in mind.

(Sourced from Rittenberg's blog (http://espn.go.com/blog/bigten/post/_/id/12311/big-ten-expansion-roundup-week-2)).

http://www.columbiatribune.com/news/2010/may/09/big-tens-behemoth/?sports

Some interesting figures:

The conference takes in approximately 70 cents per subscription each month from within the Big Ten footprint, a figure that’s been widely reported and confirmed by Mediaweek Senior Editor Anthony Cruppi. Outside the footprint, in states such as Missouri and Nebraska, BTN subscriptions deliver about a dime per month to the conference.

From there, the math is simple: As CBSSports.com’s Dennis Dodd figured last month, if Missouri should leave the Big 12 for the Big Ten, adding the state and its 2.2 million households to the Big Ten footprint, the conference could increase its monthly Missouri intake from $220,000 to $1.54 million.

That formula also explains why Rutgers or Syracuse could line the Big Ten coffers with East Coast cash. Cablevision, the super-sized carrier that brings cable to New York, New Jersey and Connecticut, agreed to offer the BTN to its subscribers last fall.
This helps explain the allure of schools like Missouri (with it's 2.2 million households) or the East Coast states. The BTN already has penetration in those states - it's about getting those states added to the conference "footprint", which could result in a seven-fold increase in revenue in those states.

Also it's a good read on how much more successful than network has been than anyone would have thought. In the black after year two, a 30% increase in advertising revenue year over year, etc.

The BTN has come a long way. I remember that first year, there were very few commercials and I think they had the same promo's running all the time.

The first year? Granted, I haven't watched it since basketball season has been over, but even then, it was the same two commercials and BTN promos every commercial break. Has this changed?

[TH1974]

What would the numbers be if Iowa State was added?

[Lime]

What would the numbers be if Iowa State was added?

A lot of NBA GMs would demand it be added in their respective cities.