The Pac-12 Network is going to provide plenty of crucial financial benefit for the members of the conference if these current subscription prices are right.
Source: Pac12 Network will charge 90 cent/sub, give or take a nickel. That's close to B1G in-market rate.— Jon Wilner (@wilnerhotline) February 16, 2012
That would mean about $10.80 per subscription per year. With about 15-20% of American households being digital cable subscribers and the population of the Pac-12 states is just over 60 million, it probably means there are about 9-12 million households watching the network, which would mean probably about $100 million of revenue generated by the Pac-12 national network. Split between the schools and you have at least $7-8 million going back to each member of the conference. Not too shabby.
And this is only a start. There's the out-of-market costs, which will only provide a fraction of that back. This is not taking into account the regional networks, which will probably have a much smaller subscription base and cost but should still bring in revenue totaling a million or so for each member school. There are the online options from Internet and mobile devices, which will probably also have their own subscription costs. There's the broadband and satellite providers that still need to be negotiated with, which should come with their own subscription costs and add in a few more million.
Millions, millions, millions. Who knew the Pac-12 could be so profitable if someone put the time to try and make it so?