There was a lot of interest in my recent post regarding the Big Ten Network, thanks to a couple three readers who posted the link of the blog entry on some highly visible Iowa Hawkeye sports boards. Here's a follow-up piece with some more information.
On the heels of the annual Cable Show held recently in Las Vegas at the Mandalay Bay Events Center, the Big Ten Network announced that Buckeye CableSystem, the 12th largest cable provider in the Big Ten Conference area, has agreed to pick up the Big Ten Network when it begins broadcasting on August 1. Buckeye CableSystem has 150,000 subscribers throughout parts of Ohio and Michigan.
Given that DirecTV has already signed on with the Big Ten Network, Buckeye CableSystem's agreement now means only two of the top 13 cable and satellite providers in the Big Ten region have signed on to broadcast the network. The $1.10 per subscriber price has caused a number of the larger providers to balk at signing up for the channel.
Plus, it's been reported the Big Ten Network will not allow the channel to be shown on anything other than the cable provider's basic channel package - a provision Big Ten Network president Mark Silverman won't confirm as being part of the negotiation process.
However, Silverman is optimistic for the immediate future. He believes the package deals on the table to cable and satellite providers are fair. "We have three months (before the first broadcast)," Silverman recently told the Chicago Tribune. "And Buckeye proves what we're asking for is fair, reasonable and doable."
However, a recent article in Street and Smith's Sports Business Journal wasn't as optimistic as Silverman. The article cast considerable doubt on the chances of the Big Ten Network being added to the Midwest's remaining large cable systems in time for the August 1 start-up.
The NFL Network - which is charging 40 cents less per cable subscriber than the Big Ten Network - hasn't been picked up by a number of large cable providers across the nation. It's being viewed by many providers as "a niche channel with a narrow focus." However, Time Warner Cable spokesperson Judy Barbao believes the Big Ten Network will have more of a broad appeal - especially in the Midwest.
"We know enough of our customer base (to know) there will be interest in the channel," Barbao told the Columbus (OH) Dispatch. "Customer interest is another factor in these decisions. It will be one of the factors we look at, along with cost and (tier) location."
Barbao said Time Warner is very hopeful to sign up with the Big Ten Network at some point. "At this stage, we have no reason to believe it won't get done."
By the way, the Sports Business Journal article implied that cable providers outside the eight-state Big Ten region may pay a significantly lower price for the network than those in the Big Ten area. National and regional cable providers in non-Big Ten states could pay as little as 10 to 15 cents per subscriber to carry the Big Ten Network.
If this is the case, this will provide the impetus for nationwide broadcasts of the Big Ten Network, broadening the appeal of conference contests, as well as providing live broadcasts for fans of Big Ten teams who don't live in the Midwest. While that significantly lowers the overall cost for national cable providers such as Time Warner or Comcast, it hits the Midwestern regional providers, such as Mediacom - or more importantly, their subscribers - in the wallet.
At $1.10 a subscriber, and with an edict to keep the network off of digital or premium tiers of cable channels, the Big Ten Network is betting on a public outcry from fans across the Midwest for local cable providers to pick up the channel - especially if it's the middle of football season and fans can't see their favorite teams play.
I've said for a number of years we're looking straight down the barrel of a "pay-per-view" formula for sports at the collegiate and professional level. The NFL Network and, now, the Big Ten Channel are both proof that day is a lot sooner than we'd like to believe.
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