for a future ACC Network.
Here is the Sports Business Daily article on the negotiations to get Fox Sports 1 and 2 distributed...
Sources: Distributors Hold The Line On Fox Sports 1 Sub Fee
By John Ourand, Staff Writer
Published August 15, 2013
The frenzied rush that saw several of the countryís biggest distributors agree to carry FS1 at launch occurred only after Fox surprisingly backed off its asking price of $0.80 per subscriber per month, according to multiple high-level sources. Cablevision, Cox, DirecTV, Dish Network and Time Warner Cable agreed to carry the new, heavily promoted all-sports channel, but only at the same rate they were paying for the previous channel, Speed, which cost $0.23 per subscriber per month. Fox told the distributors that it would convert Speed into FS1 and allow distributors with existing Speed deals to carry it at Speedís rate, or at least close to it, according to multiple sources with direct knowledge of the talks.
Fox had guaranteed that they would have 90 million subs at launch on Saturday and they were cutting it very close in that they did not have distribution agreements in place with DirecTV, Dish, Time Warner, and Bright House prior to this morning. The big sticking point was the per sub rate. Fox wanted between $0.80 and $0.88 per sub. FS1 is replacing Speed Channel and was charging $0.23 for Speed. The operators have clearly held their ground with Fox and have made them pay for promising full national distribution before they actually had it. In order to get the distribution, it appears that they had to settle for not raising the per sub rate that they were getting from Speed Channel and this will be a huge blow to their revenue projections.
Now if an ACC Network can get 90 million subs at 20 cents per sub that will be $18 million per month 216 million per year...or 14.4 million per year for 15 schools.
Of course this would mean that the ACC Network would have to have national distribution with the top operators in the country...Comcast, Direct, Dish, Time Warner, Cox, Charter, Cablevision, and Bright House. It would also mean that they would have to command a price of 20 cents per sub...which is not guaranteed.
After today the score is Cable/Dish Operators 1 - Networks 0.