GTFLETCH
Dodd-Like
- Joined
- Jun 30, 2014
- Messages
- 2,907
LINK
http://accfootballrx.blogspot.com/2016/06/plausible-accn-revenue.html
Look, I get it - the ACC has been talking about a cable channel for a long time, but so far, nothing has happened. The league has been mismanaged and made some boneheaded mistakes when it comes to athletic revenue. That has caused a lot of fans to be discouraged; some have become downright pessimistic. I get it.
However, that doesn't change the POTENTIAL of the ACC. This league has great teams in great locations. The football product is improving rapidly, and the other sports are already excellent. When people say the reason there isn't an ACC network channel yet is because it won't make any money... well, I have to speak up!
I'm not saying this is how it will go down, just one of many possibilities - this post is intended as an example to show you how easy it would be for both ESPN and the ACC to make a pile of cash AND satisfy a whole lot of customers...
Premise: there will be an ACC channel, launched by ESPN, and it will not be a cable-only channel, but will include digital/streaming options for cable cutters. In my example, I'm proposing 4 levels of subscriptions:
- 1 month price (essentially ppv): $15.00
- 6 month price (one sport season): $10.00/month
- 12 month subscription (web app): $8/month
- cable subscribers: $0.25/month (average of in-state and out-of-state)
Plausible revenue streams, based on concurrent customer numbers:
- 1 month subs: $15 X 100,000 viewers X 12 months = $18 million/year
- 6 month subs: $10 X 200,000 viewers X 12 months = $24 million/year
- 12 month subs: $8 X 400,000 viewers X 12 months = $38.4 million/year
- cable subs: $0.25 (avg) X 28 million X 12 months= $84 million/year
TOTAL of all 4 streams: $164.4 million/year
split 50/50 with ESPN: $82.2 million/year
divided by 15.2 shares = $5.4 million/year per team.
I tried to be conservative on all of these numbers, but they could easily be higher. I'm saying a total of ONLY 28.7 million people around the world would be subscribing to the ACC Network in one form or another. It could easily be twice that many, or more.
NOTES on the above:
So based on this presumably conservative estimate...
...ESPN stands to make another $82.2 million/year in new revenue
...Each ACC teams stands to receive an extra $5.4 million/year
Now I ask you - is that a failure? I don't think so.
http://accfootballrx.blogspot.com/2016/06/plausible-accn-revenue.html
Look, I get it - the ACC has been talking about a cable channel for a long time, but so far, nothing has happened. The league has been mismanaged and made some boneheaded mistakes when it comes to athletic revenue. That has caused a lot of fans to be discouraged; some have become downright pessimistic. I get it.
However, that doesn't change the POTENTIAL of the ACC. This league has great teams in great locations. The football product is improving rapidly, and the other sports are already excellent. When people say the reason there isn't an ACC network channel yet is because it won't make any money... well, I have to speak up!
I'm not saying this is how it will go down, just one of many possibilities - this post is intended as an example to show you how easy it would be for both ESPN and the ACC to make a pile of cash AND satisfy a whole lot of customers...
Premise: there will be an ACC channel, launched by ESPN, and it will not be a cable-only channel, but will include digital/streaming options for cable cutters. In my example, I'm proposing 4 levels of subscriptions:
- 1 month price (essentially ppv): $15.00
- 6 month price (one sport season): $10.00/month
- 12 month subscription (web app): $8/month
- cable subscribers: $0.25/month (average of in-state and out-of-state)
Plausible revenue streams, based on concurrent customer numbers:
- 1 month subs: $15 X 100,000 viewers X 12 months = $18 million/year
- 6 month subs: $10 X 200,000 viewers X 12 months = $24 million/year
- 12 month subs: $8 X 400,000 viewers X 12 months = $38.4 million/year
- cable subs: $0.25 (avg) X 28 million X 12 months= $84 million/year
TOTAL of all 4 streams: $164.4 million/year
split 50/50 with ESPN: $82.2 million/year
divided by 15.2 shares = $5.4 million/year per team.
I tried to be conservative on all of these numbers, but they could easily be higher. I'm saying a total of ONLY 28.7 million people around the world would be subscribing to the ACC Network in one form or another. It could easily be twice that many, or more.
NOTES on the above:
- for 1 month (ppv) viewers, I'm not saying the same 100,000 people would renew every month; I'm suggesting that a total of 1.2 million people would buy one month each in the course of a year. That could be ALL Notre Dame fans paying to watch a single game, maybe.
- The 6 month and 12 month ala carte prices are to capture cord cutters. A 6-month sub. is to allow them to buy JUST football or JUST basketball season.
So based on this presumably conservative estimate...
...ESPN stands to make another $82.2 million/year in new revenue
...Each ACC teams stands to receive an extra $5.4 million/year
Now I ask you - is that a failure? I don't think so.
