Jayne Kamin-Oncea-US PRESSWIRE - Presswire
The Pac-12 is asking for around 90 cents a subscriber from their cable and satellite providers, including the entrenched DirecTV.
There are probably those wondering whether the Pac-12 Network is making a fair deal with DirecTV because of how long negotiations have drawn themselves out and how Larry Scott seems comfortable to stand pat until DirecTV bends. Is the Pac-12 trying to ask for too exorbitant a fee? Shouldn't they try and bring the bargaining price down to try and get a deal done?
It would seem like what the Pac-12 is offering is pretty for a conference network.
Pac-12 Network asking about 90 cents. RT @arashmarkazi: TWC SportsNet is asking as much as $3.95 per subscriber per month— Bryan Fischer (@BryanDFischer) October 1, 2012
That is pretty standard pricing. Back in 2010, the Big Ten Network earned about 88 cents per subscriber in the eight states that hold Big Ten members. You figure that number has probably risen a little with the inclusion of Nebraska.
Considering how big the California market is and how large the markets are compared to the Big Ten markets, the Pac-12 Network is probably giving out a bit of a bargain price for their network. You'd imagine with DirecTV, the pricing would probably be about 90 cents or so in-state and maybe half of that or so out-of-market. That isn't so bad at all for a conference network showing 35 live football games and hundreds of basketball and non-revenue sporting events every year.
Moreover, bringing the bargaining price down to get DirecTV to make a deal on their terms would probably mean the Pac-12 would have to go to all their other cable and satellite providers and lower the price for them too. Doesn't seem like a fair exchange at all.