Future of Technology and the Big10 Network

DP5555

Well-Known Member
So I was talking with my Dad (a computer engineer) about the direction expansion could be taking college football and he made some interesting points regarding the future of the Big Ten Network. Currently (as Pollard pointed out) almost anyone who has cable/Sat. television right now within the Big Ten footprint probably pays around a $1 for it per month whether they realize it or not. This is a large part of the reason the Big Ten Network has such a profound impact on the finances of the teams within it's conference. As more conferences expand, the chances more conferences decide to create a Network similar to the way the Big Ten does increase. If these conferences create networks then more and more people will see their television bills raised. The more networks created the higher the cable bill... the higher the cable bill the more people begin to realize what they are paying for (and likely some will choose not to pay for it because of it). Some of this was part of Mediacom's issue with the Big Ten Network initially.

My dad works for IBM and he was explaining to me what will eventually be possible as we approach 4g network capabilities. Most advancements will just be expanding on things that are already possible. Wireless streaming is already huge... Netflix has exploded because of it. As we approach 4g networks, soon there will be little to no delay time in connection and speed. Right now my dad can control his television from his phone, and soon we will be able to stream movies onto our televisions from our cell phones networks.

What was his main point in all of this? Well he's not sure whether or not the Big Ten Network format will exist in 5-10 years (the Big Ten Network relies on Cable/Sat. programming to make it's millions). Will people continue to pay high cable/sat. bills if they can turn their TV into a wireless network and have the ability to customize their television experience? Currently people pay for 100 channels that are playing all the time but they can only watch one of them. Why pay for 100 channels if you can only watch one? Sooner or later we will be able to choose what channels we want access to and what channels we have no interest in. Iowa State fans for instance who have no interest in Iowa football or the Big Ten Network will not be forced to pay for it like they are now if they want expanded cable. Thus the number of television sets the Big Ten has access to will drop significantly.

Or, if people can access their favorite television shows and movies by wireless streaming on the internet (which can be streamed on a television) then why pay for cable in the first place?

Another good point... what's stopping ND from remaining independent and choosing to make their games a Pay Per View experience? How many hundreds of thousands of ND fans in the country would be willing to pay $5 for a ND football game? It's very likely most of them would and ND wouldn't be forced to split that income with any other teams or conferences.

Anyways, I'm sorry this is so long but it's just meant to be some food for thought. Technology is taking us in crazy directions and it will continue to amaze us. The Big Ten Network will have to figure out a way to adapt sooner or later if it wants to continue to see the type of revenue or success it's looking for.
 
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The B10 Network will always be around as they have to produce the live feeds for the games. I can see them morph into something different as technology changes.
 
I agree, I'm sure they will find a way to adapt with the majority. However, they do make a significant amount of money from people who don't even watch their channel and wouldn't pay for it if they could choose.

When they have the ability to make that choice it will be a significant loss in revenue. Will be interesting to see how they can adjust.
 
So I was talking with my Dad (a computer engineer) about the direction expansion could be taking college football and he made some interesting points regarding the future of the Big Ten Network. Currently (as Pollard pointed out) almost anyone who has cable/Sat. television right now within the Big Ten footprint probably pays around a $1 for it per month whether they realize it or not. This is a large part of the reason the Big Ten Network has such a profound impact on the finances of the teams within it's conference. As more conferences expand, the chances more conferences decide to create a Network similar to the way the Big Ten does increase. If these conferences create networks then more and more people will see their television bills raised. The more networks created the higher the cable bill... the higher the cable bill the more people begin to realize what they are paying for (and likely some will choose not to pay for it because of it). Some of this was part of Mediacom's issue with the Big Ten Network initially.

My dad works for IBM and he was explaining to me what will eventually be possible as we approach 4g network capabilities. Most advancements will just be expanding on things that are already possible. Wireless streaming is already huge... Netflix has exploded because of it. As we approach 4g networks, soon there will be little to no delay time in connection and speed. Right now my dad can control his television from his phone, and soon we will be able to stream movies onto our televisions from our cell phones networks.

What was his main point in all of this? Well he's not sure whether or not the Big Ten Network format will exist in 5-10 years (the Big Ten Network relies on Cable/Sat. programming to make it's millions). Will people continue to pay high cable/sat. bills if they can turn their TV into a wireless network and have the ability to customize their television experience? Currently people pay for 100 channels that are playing all the time but they can only watch one of them. Why pay for 100 channels if you can only watch one? Sooner or later we will be able to choose what channels we want access to and what channels we have no interest in. Iowa State fans for instance who have no interest in Iowa football or the Big Ten Network will not be forced to pay for it like they are now if they want expanded cable. Thus the number of television sets the Big Ten has access to will drop significantly.

Or, if people can access their favorite television shows and movies by wireless streaming on the internet (which can be streamed on a television) then why pay for cable in the first place?

Another good point... what's stopping ND from remaining independent and choosing to make their games a Pay Per View experience? How many hundreds of thousands of ND fans in the country would be willing to pay $5 for a ND football game? It's very likely most of them would and ND wouldn't be forced to split that income with any other teams or conferences.

Anyways, I'm sorry this is so long but it's just meant to be some food for thought. Technology is taking us in crazy directions and it will continue to amaze us. The Big Ten Network will have to figure out a way to adapt sooner or later if it wants to continue to see the type of revenue or success it's looking for.

Makes no difference as the world will end in 2012 anyway.
 
Great points. The btn was ahead of its time. Now others are playing catch-up. Can't wait to see what's next.
 
blaser "it amuses me when people assume the bt is clueless or would do anything to hurt the brand"

Curious at what point I assumed they were clueless or would do something to hurt the brand? I said I'm sure they will find a way to adjust but that doesn't mean it will be an adjustment they want to make. They have a pretty sweet gig right now with cable and satellite television. Plus the addition of Nebraska wasn't only strategic as far as their history and tradition goes... geographically it works out very well for the network.
 
This is a long opinion and flawed premise. :)

Granted there are lots of people that are paying for the BTN that don't care, but this is also why the are only charging .70 a month. If channels were "opt in" the BTN would be like $5 a month, so revenue will not be reduced. The reason the B10 is so powerful is the number of heads that do care relative to other conferences. The B10 will have more revenue relative to the other conferences. Lastly, when the BTN has to change how it is delivered into homes, so will ESPN, the SEC network etc., so how it is delivered is really not important.
 
Another good point... what's stopping ND from remaining independent and choosing to make their games a Pay Per View experience? How many hundreds of thousands of ND fans in the country would be willing to pay $5 for a ND football game? It's very likely most of them would and ND wouldn't be forced to split that income with any other teams or conferences.

yeah, putting their product on pay-per-view has really helped boxing remain relevant :rolleyes:
 
The big question is will the BTN ever hire any "personalities" that are worth a damn? They have the money to hire some decent names, not just rejects from other networks. The young blonde on friday nights is a good start.
 
Good one bwsmoney. You're lacking intelligence if you think it's pay-per-view that's boxings problem. The product is the problem not the way it's shown. The Mayweather-Mosley fight made millions being it was a decent couple of fighters... well even that product was lacking entertainment.

How has PPV helped out the UFC on the other hand?
 
mthawk00
It's not necessarily a question of whether or not the Big 10 will generate income it's more a matter of how much. Sure the Big 10 has a lot of fans and in an "opt in" system they would still sell the channel to plenty of people. If they eventually have to sell the channel as an individual option the price of it would determine whether or not it's a substantial difference from the current system. I understand there is a ton of Big 10 fans in its coverage area but there are also a ton of people who aren't that are paying that 70 cents.

If the other conferences were to create a "network" do you really think the Big 10 would still make more money than all of them? I honestly have no idea, but the geographic areas of other potential super-conferences certainly have higher populations which would mean more potential customers.
 
The Big Ten Network will be fine. Even if cable subscriptions fall (I doubt they will), their quality content will be available on multiple devices and distribution methods. A hot mix of subscribers and advertising $$$ will make enough money to help the BTN compete with ESPN for college football distribution and influence. Who knows, maybe the master negotiator Jim Delaney is working with Fox and the Pac# to put together some type of partnership? It will be very interesting to see whether the Big 10 adds additional schools and whether the SEC expands at all. If they do, I wonder if they will renegotiate with ESPN.
 
The Big Ten Network will be fine. Even if cable subscriptions fall (I doubt they will), their quality content will be available on multiple devices and distribution methods. A hot mix of subscribers and advertising $$$ will make enough money to help the BTN compete with ESPN for college football distribution and influence. Who knows, maybe the master negotiator Jim Delaney is working with Fox and the Pac# to put together some type of partnership? It will be very interesting to see whether the Big 10 adds additional schools and whether the SEC expands at all. If they do, I wonder if they will renegotiate with ESPN.

Actually the KC TV station that reported Texas to the Big Ten (i know, i know) is reporting the Big12 & Pac 10 may start their own shared network.
 
The big ten is a entity of firsts. We were the first to bring in replay and the first to get our own network. Now everyone else is doing it. We were the first to consider a REAL expansion and now everyone else is doing it. I'm sure once it comes down to catching up with Technology the Big10 will do it and everyone else will follow suit and copy.
 
Good one bwsmoney. You're lacking intelligence if you think it's pay-per-view that's boxings problem. The product is the problem not the way it's shown. The Mayweather-Mosley fight made millions being it was a decent couple of fighters... well even that product was lacking entertainment.

How has PPV helped out the UFC on the other hand?

who? never heard of them ... that's my point

I'm sure they can make money by killing what fans they have left with ridiculous PPV charges, but you can't GROW the sport if casual sports fan doesn't have ready access to it ... I am not going to seek out a Big East game or a Mtn West game, and pay to see it, but if you throw one on ESPN on a Thursday night, I'll probably watch ... so many sports leagues/franchises focus too much on how to bleed their current fans for the most they can, rather than what they should be focused on, attracting more and more fans
 
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mthawk00
It's not necessarily a question of whether or not the Big 10 will generate income it's more a matter of how much. Sure the Big 10 has a lot of fans and in an "opt in" system they would still sell the channel to plenty of people. If they eventually have to sell the channel as an individual option the price of it would determine whether or not it's a substantial difference from the current system. I understand there is a ton of Big 10 fans in its coverage area but there are also a ton of people who aren't that are paying that 70 cents.

If the other conferences were to create a "network" do you really think the Big 10 would still make more money than all of them? I honestly have no idea, but the geographic areas of other potential super-conferences certainly have higher populations which would mean more potential customers.

Yes the will make more money or the same amount (charging more per "opt in" subcriber). Yes I believe the B10 will make more on the BTN then the other networks when they create their own. Largest alumni bases, largest stadiums, they already have the largest contracts with networks. Why would that change in your "opt in" scenario?
 
Again, I said I have no idea if it would or would not put the Big 10 behind any other conference. Largest alumni base doesn't necessarily mean largest fan following. I graduated from Iowa but most of my friends didn't and they're still die hard Hawk fans...

I'm just saying the population density in other conferences territories is much larger. Thus I would assume that means they have more potential for customers to "opt in" (both alumni and non-alumni). The size of the stadium really has nothing to do with how many people are tuning in on their television or in the future their "network". They do currently have the largest network contracts but that could also change depending on what method they have to use to make their programs accessible to viewers.

I don't doubt that the Big 10 will always remain towards the top because we have an incredibly dedicated fan base. I'm just saying if other conferences can figure out how to gain equal or greater footing than the big 10 financially it will be interesting to see if or how they adjust.
 

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