1 Comment
⭠ Return to thread

When a consumer signs up as a satellite or cable tv subscriber, they typically will pick from a list of bundled channels. There may be a couple versions of a Basic package which includes 30-100 channels. These channels each earn a carriage rate for their inclusion into a bundle per household. Beyond the initial package people subscribe to, they may pick additional content bundles that include other channels. HBO, Showtime, Sports, etc...

In a basic subscriber package the provider typically carries local channels, community channels and then an assortment of entertainment channels including CNN, Fox News, ESPN, Discovery, etc... The Big Ten Network has succeeded in being carried by most midwestern cable/satellite providers as a Basic channel. Variety has a listing of carriage rates per channel, but I understood BTN to charge about $1.50 in the midwest but perhaps I'm wrong on the amount. https://variety.com/vip/pay-tv-true-cost-free-1234810682/ In states outside the Big Ten network, their channel might be included in an optional package that someone would have to pay in addition to a basic package.

This next contract for the Big Ten has them moving away from ABC/ESPN and towards NBC, CBS, Fox and their own cable channel (BTN) which is run by Fox. They earn money based on how the TV Networks value them and then on top of that by how many households are subscribed to their channel. Within the Big Ten footprint, they leverage for their channel to be included into basic cable channels which allows them to earn money based on the number of cable/satellite subscribers and not just viewership.

So to sum up and answer your question. Should the Big Ten succeed in their negotiations with cable channels in California, every customer will have the channel bundled into their basic cable package. Whether they watch the channel or not, they pay for it. Should they succeed, customers aren't entitled to sign up for a channel, they are paying for it as part of the fees for their basic channel bundle.

The Big Ten must have felt that USC/UCLA was the best combination to make this happen and not one Southern California school and a Northern California school. If they are right, Cal would cannibalize these earnings as the earnings would be the same but now with 3 instead of 2 universities.

This helps explain why Oregon and Washington might be considered more highly in the next expansion than a Cal. Notre Dame and any Florida school likely top the list.

Expand full comment