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July 15th Updatre PAC 12 Networks

  • We are one month from launch and as I scan other boards there is a lotof bad and false informationout there at this time. Thisis all fluid right now and can change at any moment, but here is a summary of where we are right now. I will discuss football first, then basketball and then the other sports. I will then touchjon negotiations with carriers.

    1. Football The season starts August 30 and all games will be televised with the home games of membvers controlled by the PAC 12, There will BE NO PAC 12 home football games on anyof theFox Sports Networks period. They are not in the rotation. Fox will carry one national game every week with national coverage able company that has it and live in the footprint (PaC 12 states plus Nevada) you will have at least your local regional
    and will carry thtee CCG in December on Fox. FX will televise one game nationally every week during the season. ESPN/ABC will carry games two or three every week on their various networks inlcudinfg ESPNU. The rest of the home games will be on the PAC12 Networks to be launched on 8/15, If you have a cable with one of the four carriers and live in Arizona, California Utah, Nevada, Colorado, Oregon or Washington you will have the local regional either in basic cable or extended basic and in some cases depending on the cable company the national or other regionals somewhere in the lineup, Also if you have this available you can have at no additional charge access to In Demand intrernet pickup of other programming on the other PAC12 networks. If you do not have this you will not be able to get it.

    2. Basketball First the Fox Sports Networks are in the rotationto show games along with eSPN and the PaC 12 Networks.There again to get the PaC 12 Networks you need a carrier that has a contract to show. The conference will have greater coverage than ever before. The Conference Championships in the MGM Grand in Las Vegas will have 1 Quarter Final 1 Semi Final and he Championship game on ESPN and the rest will be on the PAC12 Networks.

    3. Other sports ESPN will show 25 live events to be named later, but as far aas I know no Fox events and over 100 baseball games, 100 softball games and 85 volleyball games among others will air on the PaC 12 Networks. For baseball and softball fans this will be wonderful.

    4. Carrier update and this changes by the hour. As of right now no new Carrier or significance has signed on for the networks, but they are in negotiations with Direct, Dish, Charter, Verizon, ATT and Cable Vision among the bigger ones and many smaller systems. Stevenson and Scott remain optimistic, but there is much to negotiate. I am opitmistic on Verizon, ATT and Charter, but only lsightly optimistic on Direct and have no optimism at all on Dish. Concerning Direct as you all know they are in a major battle over costs withe Viacom who wants a 30% raise in fees since Direct has had discounts others do not get for about fie years. This makes our negotiations less important to them. If a deal is made with Direct it will likely be for only the National and maybe Regional Coveraage in local regions. Anothe hang up in my opinioin is sports Bar deals Direct has acccross the nation and how these revenues will be split between the Network and Direct. For example each bar that has the Big 10 Network pays 39.99 a month for this, but who can tell me how much Direct gets and how much the Big 10 network is paid from these subscriptions. If bars wee charged say 30 a month i owuld hope that the Networks would get at least 10 of that as we provide the entertainment Direct just deliversit via satelite to patrons in the bars. someone out there may (Ashton) know how much the Big 10 gets from this deal, That would be very interestin. In summary I now doubt Direct will be on board before the end of football Season. I hope to be wrong but does not look good.

    Time to get past Penn State and mnove on to football and then Basketball and then Baseball and Softball.
    Jim

    jjones163

  • Jim, thanks for the update... I travel internationally a great deal and most of my viewing will be via internet or some countries that do get Direct... I look forward to further updates from you and Ashton... Thanks

    Pin High ●

  • Pin High I wish you well and believeit will get better for international viewing in future years, but this year not muchwill be available in that area and I become less and less optimistic each day on Direct having a deal in place. Direct not likelyto deal until it becomes obvious they will be harmed if they do not make a deal.

    Jim

    jjones163

  • jjones163 said...

    Anothe hang up in my opinioin is sports Bar deals Direct has acccross the nation and how these revenues will be split between the Network and Direct. For example each bar that has the Big 10 Network pays 39.99 a month for this, but who can tell me how much Direct gets and how much the Big 10 network is paid from these subscriptions. If bars wee charged say 30 a month i owuld hope that the Networks would get at least 10 of that as we provide the entertainment Direct just deliversit via satelite to patrons in the bars. someone out there may (Ashton) know how much the Big 10 gets from this deal,

    Time to get past Penn State and mnove on to football and then Basketball and then Baseball and Softball. Jim

    Who would have thought that such a simple question would be so difficult to answer? I don't have the answer yet Jim but I'll try to get something up later. Third tier rights...out of market deals...my head hurts. ;-)

    Two items I will address in this post concerns international availability and internet streaming.

    As much as I'm a proponent for "cutting the cord" and supporting an À la carte type of subscription model via internet streaming, I knew that I (we) was pretty much hosed when it came to TV Everywhere (Comcast Xfinity). This model is basically built on having the TV subscription first and the streaming comes as an extra added benefit of the cable/satellite subscription. This falls in line with the likes of HBOgo.com that first requires a subscription to HBO and then a login into your provider account to confirm that that the subscription exists before streaming will occur.

    Too bad...

    The international availability is a feature that is "coming soon" via Ooyala. This is privately held company that is connected with Google.

    Big Ten Network (BTN & BTN2go) offers "out-of-market" packages that are most likely used by the bars that have DirectTV but are outside of the Big Ten network footprint. What the revenue model is, is a question that remains to be answered.

    I hope I have represented this correctly. I've attached two links. One dealing with Ooyala and the other a little more political in nature in regards TV internet streaming.

    If it helps...

    Ashton

    This post was edited by Ashton on 7/15/2012 at 2:41 PM

    Pac-12 and Ooyala Partner to Create 24/7 Digital Sports Network

    Pac-12 Enterprises and Ooyala have partnered to enable Pac-12 fans watch live sports content on connected devices, with TV-Everywhere authentication.

    www.ooyala.com

    TV Everywhere: gift to consumers or plot to kill online TV? | Ars Technica

    The cable industry says Free Press is way off base when the advocacy group

    arstechnica.com

    Ashton

  • Great post Ashton. Ihope that OOYala who I had never heaard of until early this year will solve the international issue eventually, but I agree TV Everywhere is to shore up the member Cable companies but it is not just Comcast but the other 3 are all partners and virtually all cable companies are involved except Dish and Direct who aarfe not cable companies. It is obvious the PaC 12 is protecting the cable companies on this one this year. Maybe in future years it will get better.

    Jim

    jjones163

  • UMMMMM.... Just cover DIRECTV
    Whats the deal OR No Deal?

    You know...Readers Digest Version

    Mrzipityduda

  • Zip...

    I know this what everyone wants to know. Will it work or not?

    The fact of the matter is, this is business as usual for the satellite providers. They did this with BTN and they will do this with us. They have decent reasons for following this type of negotiating model.

    The item I find interesting is Ooyala, sponsored by Google. Google is a content distributor and uses the web as their main medium for content streaming. The web is hosted on the backbone of the likes of Comcast and Time Warner, who have a legitimate bitch about other companies (Google) using their infrastructure to profit.

    Clear as mud...right?

    Ashton

  • At the moment...no.

    Don't cancel your subscription yet, There will probably be an eleventh hour agreement.

    Hold tight to that hot tin roof.

    Ashton

  • Ashton, thanks for the links... I guess we will have to wait and see how Ooyala shakes out...

    Pin High ●

  • back when I got DISH it was the only provider here in Omaha that would give me the FOX sports AZ package...now it seems as if it will fall behind Direct and possibly even Cable...i also dont like that they dont do ESPNU in HD...I may have to look at the other options.

    BEAR DOWN

    azwildcat1211

  • First I know very little about internet providers and although .com companies as I barely can log into things. HOwever to me as Ashton points out htis is interesting because In Demand and TV Everywhereare the creatiions of Comcast, TW,Cox and Brighthouse on one side and Ooyala a creationof Google founders who are as I understand it Stanford grads and good friends of LArry Scott. These sworn enemies seem to be collaborationg in some way. There are other strange things going on in this entire matter.
    1. Fox and ESPN enemies to the death coming together to sign tV Deal with PaC 12 and keep COMCAST (NBC) out.
    2. COMCAST and TW who are major enemies in cable game getting together with Cox and Brighthouse to form PAC 12 network.

    Next thing you know Arizona and ASU will form a partnership to sell trinkets at the Arizona California border.

    some strang bedfellows here.

    Jim

    jjones163

  • What I don't understand is why can't they just have a simple deal like major league baseball has on the internet. I watch every one (well, until this year when they've played so bad) of the Phillies games in HD on my MacBook Pro. Great quality and I get the Phillies' home announcers with the MLB premium package. I can also watch every other MLB game every day and there are archived games. I get this for 24.99 a month. If I wanted to go to the trouble I could hook up my Mac to my flatscreen t.v. but since I have the 17 inch Mac sitting right on my bar I have no need because it has great HD.
    I don't understand why every CFB fan couldn't get the same for their own conference.

    rickyk

  • ricky how much would you bewilling to pay for that option. Remember when Larry Scott got here the first thing he saw was thePaC 10 was under valued by t least several million dollars a year. Giving away right s to view our product would do nothing for the schools. That is why they are doing this to maximize the revnues for our universities. Cheap internet access does not pad the revnues for the schools.

    JimPS I think it will be very simple going forward if a profit can be made they will offer it to us

    jjones163

  • If you go tothe front pageofMS NBC they have a storyof Direct and Viacom and dish and AMC. The problem both satelite companies is they have a tighter budget and are not as ableas cable companies to pass on increaains costs. All the major cable companies also provide inteernet and phone service for a profit and can more easilly absorb and pass on carrier rate increases. Dish and Direct both do not have this luxury and thus they must fight against increaased costs, Comcast or TW just absorbeit and passiton to the subscribers. It is for this reason I have zero hope of a deal with Dish and put Direct at 50/50 right now but thelonger the Viacom deal goes on the worse it gets. I wish the news were better. I would not cancle anything right now if it were me, but if by September 1 a deal is not in place I owuld change, but then I have had Cox since 1993 and the computer internet and phone since 2000, High prices but good service and they provide what I want.

    Jim

    jjones163

  • Jim, I personally would be willing to pay the same, maybe even up to double, to be able to watch any PAC game. So let's say I'm paying 50 bucks a month and all PAC 12 schools are also hooked up and offering the same level of service through the conference, I bet that would be a significant amount of money. I do agree with what Scott said and he went a long way addressing that imbalance but I think there is a lot more to come.

    rickyk

  • With the LA market part of the PAC, everyone will get on board, especially Direct and Dish.

    Bear Down Arizona! Wildcat Sports Report, CFO AZ's Certified Tax Coach at Wildcat Tax & Accountingwww.WildcatTax.com

    bpwildcat

  • Ted Miller of ESPN has postedinhis blog the early schedule for allthe PaC 12 networks from Launch through September 2. It appears for the most part to have a lot of the same contenton all of the channels at least at first. BP I hope you are right but I doubt they come aboard for a while especially Dish.

    Jim

    jjones163

  • On Facebook, the PAC 12 released a video saying hey AZ fans get excited about the network, AZ athletic Department also released it. Well there are alot of reponses saying I can not get excited since I will nto get to see it. Looks like alot of negative reaction!! Hey are some reponses I thought all of you might like:

    Travis Leftovers Burns: Yawn! Until it's on Directv it's irrelevant. Dish and cable are garbage. Every sports bar in the country is on Directv. When I hear the Pac-12 has woken up and come to an agreement with Directv I'll be excited. None of this is exciting to a Wildcat displaced in Texas.
    14 hours ago · Unlike · 1.

    Nick Foles: DirecTV needs it, or it's otherwise worthless to me. But it is a step in the right direction.
    12 hours ago · Unlike · 2.

    Arizona Athletics: We agree with all of you! Travis, please continue to voice your concerns to DirecTV. The Pac-12 has done everything that they can to negotiate with DirecTV--they so far have stood their ground. Let them know that you want the Pac-12 network here:
    about an hour ago · Like

    Yes that is the Nick Foles

    CatsinCO

  • Yes Direct andDish are holding there ground and unless fans are willing to toss hrtemto hte curb they will continue ot hold the ground on this. If you wantit force them to act by being willing to go elsewhere. I believe the network ahs tried to get them aboard, but hey wnat special privileges they do not deserve.

    Itis up to the fans to force them, my guess some iwllleavethem but most will just meekly accept what they offer and then bitch about the PAC 12 network being a total failure.

    Jim

    jjones163

  • does anyone know the difference between the current Big 10 - directv agreement is, and what the pac 12 wants?

    it would seem that there is a working system going that should be copied, adjusted and negotiated from.

    Rockdoc

  • Rockdoc none of thepartiesinvolved reveal this sortof information. I know Directv is paid 39.99 per month for each bar that gets the Big 10 feed but have no idea how much they keep andhow much goes to the Big 10. As to the carrier fees in understand it about what the PAC is asking for somewhere in the .90 to 1.00 ranve and .50 out. My understanding is direct wants only the naitonal network wants a prefential treatment on prices. I believe our partners would just as soon Direct and Dish are out of the deal at first, but the conference of course wants a deal but on our terms. I want a deal on our terms also.

    Jim

    jjones163

  • jjones163 said...

    Rockdoc none of thepartiesinvolved reveal this sortof information. I know Directv is paid 39.99 per month for each bar that gets the Big 10 feed but have no idea how much they keep andhow much goes to the Big 10. As to the carrier fees in understand it about what the PAC is asking for somewhere in the .90 to 1.00 ranve and .50 out. My understanding is direct wants only the naitonal network wants a prefential treatment on prices. I believe our partners would just as soon Direct and Dish are out of the deal at first, but the conference of course wants a deal but on our terms. I want a deal on our terms also.

    Jim

    Bad week for me Jim as far as having the time to look into it. I'll try to see if I can pull some "market research" over the weekend.

    Weekend is pretty busy too...

    Simple Google searches aren't cutting it so I may actually have to use the University library resources. If anybody else can beat me to the punch, you are welcome to it.

    Ashton

  • To be honest, this is BP's domain.

    Dammit Jim, I'm an IT guy not an accountant - lol

    Put BP to work on breaking down the financial statement.

    Edit: item of interest

    SPORTS NETWORKS, ELIMINATIONS and OTHER
    Revenues $ 62 $ 60
    Operating profit before depreciation and amortization (1) 25 19
    Operating profit 21 15
    Depreciation and amortization 4 4

    This post was edited by Ashton on 7/19/2012 at 12:45 AM

    DIRECTV - DIRECTV Announces First Quarter 2012 Results

    http://investor.directv.com/releasedetail.cfm?releaseid=671207

    investor.directv.com

    Ashton

  • Thanks Ashton I will put my graduate training in finance to work here although it does not appear they breakout the margin on the bar business which would be critical. I suspect Direcrt takes more of the 39.99 than the Big Ten gets. Thanks again

    This post was edited by jjones163 on 7/19/2012 at 1:07 AM

    jjones163

  • The only Readers Digest version I can take from that section is that it's either the sports networks OR elimination of channels that is leading to revenue and profit growth while depreciation and amortization remains the same.

    On the surface it looks like DirectTV will negotiate.

    It does not answer your original question.

    Ashton

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