ESPN is looking to see if OTT streaming is really a viable business model and the ACC package will create an interesting case study.

As I understand it, the streaming channel will be free (part of your current pay tv bill) and accessible via Watch ESPN for all current customers that already have Watch ESPN access. This means that the target pay audience for the new OTT option are the cord cutters, cord trimmers, and cord nevers.

ESPN clearly wants to see if there is a viable business model for a pure OTT niche sports network. I would guess that the projections for 2016 - 2019 will target a profit that will pay the ACC schools $45 million per year in total. I have no idea where that number came from. :)

The big questions for a college OTT conference net are how much per month is the audience willing to pay and will anyone stick around as customers during the summer months.

ESPN is hoping for good numbers as they can use this as leverage against the distributors to negotiate favorable terms in carriage agreements as the threat will be made that they have a viable business model that could involve the cable and satcos out of the mix.

Also, this leak of the story has a very interesting timing since it is a clear shot against the Big 12 on the eve of their media days. My guess is that there may be a lot of interesting looks at the guys from Texas and Oklahoma as they now have some serious options to consider.

I promise to have a compete analysis tomorrow here,