Posted by kneeneighbor on 11/19/2012 3:05:00 PM (view original):
The point is that all the Rutgers fans will now have to call the cable company and tell them to add Big Ten Network, thats where the revenue is. It doesnt matter if the ratings are going up, it matters that they get to bill comcast or whoever the company is that adds it to their package.
Well, it's really not even that complicated in the short-term. The BTN already has carriage deals with the major cable companies that requires that they be on basic/standard packages in Big 10 territory. Those deals also command a significantly higher per subscriber fee in Big 10 territory than outside of it. So, as soon as Rutgers enters the Big 10, based on existing agreements, the BTN adds millions of subscribers at a premium monthly price, whether any of them watches it or not. Now, Comcast and the like can always try to renegotiate their deals, and honestly, crave is right, I don't see a major s*itstorm in the NYC market over the loss of Rutgers games, at least not one that would move the needle for a Comcast. The problem is, that carriage deal is the same deal that Comcast is using to broadcast the BTN in Ohio, Michigan, PA, etc - and that does create serious problems for Comcast if they can't come to an agreement and lose the channel. It's a complete racket.
So, while I could see some very long-term implications of watering down the overall product, in the near-term, it's absolutely a massive financial boon for the Big 10.