Time Warner Cable Wants In On UT Channel

So reading the source article, it looks like TWC would simply offer free distribution across the state to all of their cable subscribers in exchange for a 20% stake in the network (shared with UT/IMG or ESPN?) Im not really sure how that is such a great deal for ESPN.

I know that the talks are very early, but it would seem like ESPN will want to charge TWC both for the rights to carry the channel as well as the stake in the channel, regardless of the fact that UT will want the greatest penetration possible into the state of Texas’ tv sets.

Im quite sure that within 5 years, this channel will be on 85%+ of the 7.5 million cable/satellite subscribers programming lineup within the state.

Burnt Orange is a way of life that many better get used to seeing in the state ;)

“There are almost 8 million cable and satellite households in the state.”

This number actually seems small.

srr50 is coming over to customize my DVR settings to ensure I’m watching only the highest rated telecasts.

I can’t wait!

My thought as well Nordberg. I would have thought that number would be closer to 12 million.

how does TWC’s 20% equity in the channel reflect their willingness to aggressively expand the channel throughout it’s regional networks outside of texas? i can’t see TWC putting such big skin in the game if they planned on limiting it to just the texas cable markets. and does TWC’s investment preclude any other cable/satellite carriers from adding the station, or induce them to drag their feet?

There’s 25 million people in the state according to the latest census, so maybe 10-12 million households? 8 million sounds about right.

How much would ESPN need to charge per state subscriber to turn a profit? These are just rough order of magnitude estimates but let’s see: They’ve got to cover $15M to UT, staff the offices in Bristol and Austin, and create enough content to fill 24 hours a day. $1 per month would give them $96 million in annual subscription revenue alone. No idea how much advertising revenue would bring in, but probably not a tremendous amount early on ($5-10M ?)

Another reason this is a great move for ESPN, is that they get to test out the concept of a university-specific network on a huge brand name that’s unlikely to lose money. Plus, there’s the chance that it has become a huge success by the time conference TV deals for the Big 10, PAC-10, and SEC begin expiring and it will prompt future networks for other universities.

how does TWC’s 20% equity in the channel reflect their willingness to aggressively expand the channel throughout it’s regional networks outside of texas? i can’t see TWC putting such big skin in the game if they planned on limiting it to just the texas cable markets. and does TWC’s investment preclude any other cable/satellite carriers from adding the station, or induce them to drag their feet?

Outside of Texas the channel will be a premium buy. UT and the distributor will split the monthly fee. I believe right now the Big 10 Network is available through TWC in Austin at 6.95.

Obviously TWC will do a better job of marketing the channel to UT expatriates than other carriers, but ESPN should be able to negotiate its availability on other outlets.

Vasher:

Why do you need me? You already have every episode of Glee archived.

I just hope that our network is available widely on a global basis, and that you can subscribe without having it bundled into a higher priced package. For example, I live in Chicago and have DirecTV. I don’t want to have to switch to Dish or TWC or whatever, and I don’t want to have to buy a “sports pack” or somesuch for $20/mo to get the one channel I want. I’m perfectly happy to pay $5/mo or whatever for just the Longhorn channel.

We need that kind of flexibility, or we dilute the opportunity for global branding. I suspect that we have an awful lot of Longhorn fans outside of the state of Texas, and we can’t lose sight of them as we work through the distribution aspects of this agreement.

Please answer my prayers that ESPN3 will carry the Longhorn Network …

quoting the SBP article:

“ESPN […] says it will push for the broadest possible distribution, meaning expanded basic carriage in Texas and sports tier carriage elsewhere”

reading the above, i’d expect TWC NY/NJ up here to add ESPN-UT to their “Sports Pass” (formerly “Digital Sports Tier”) level of service for around $6-7/month.

currently for just $5.95/month you get ESPN classic, NBATV, all the FOX College Sports Networks, FOX soccer, NHLTV, Fuel, GOLTV, Tennis Channel, ESPN Goal Line and Buzzer Beater (both awesome) and the Big10 network, most all in HD (although i’ve seen these sports tiers priced and arranged differently across the country). link for channel lineup here: http://www.timewarnercable.com/nynj/learn/programming/sports/tiers.html

buuuuuut, still no NFL network at any price.

“Please answer my prayers that ESPN3 will carry the Longhorn Network …”

(Here in northern Virginia,) I second that. Having it on ESPN3 would be awesome, and give the Longhorn network national exposure to large numbers of broadband subscribers.

Poofypuppy said: January 24th, 2011 at 4:50 pm
"Please answer my prayers that ESPN3 will carry the Longhorn Network …"

(Here in northern Virginia,) I second that. Having it on ESPN3 would be awesome, and give the Longhorn network national exposure to large numbers of broadband subscribers.

I haven’t missed a basketball game, yet. Those not available on network or cable TV have been carried on-line on ESPN3 by my ISP. It ain’t HD, but it’s better than scrambling around looking for the internet radio dial.

Digital rights was covered in the story….

“As the talks with ESPN progressed, questions emerged over what to do with the digital rights. IMG College owns the digital rights to the official UT athletic department website, but ESPN wanted a website that would represent the network and carry part of its programming.

The rub was that many of UT’s live events already were being streamed on the official site and now they were moving to the channel. ESPN needed a website where it could promote the channel and broadcast events live if they weren’t airing on the TV channel.

IMG College will retain the rights to the official website, but it will show highlights instead of live streamed events. According to the agreement between IMG College and ESPN, the school’s official site cannot show more than two minutes of an event that’s live on the channel or the channel’s website."

After TWC is secured, focus should turn to Dish Network, DirecTV, Comcast and Cox Cable. Deals with the top three cable systems and the two major satellite television providers would make for a nice footprint of potential subscribers.

Any particular regions that have a vast number of Longhorn fans or alumni chapters? A Google search suggests SES S.A., Eutelsat, and Liberty Global would be companies to deal with if there is a major international ambition for the network.

Looking forward to see how this expands on a national scale, if it indeed does so.

Notre Dame will follow in your footsteps, but getting this type of channel all over the country is going to be tricky.

Thanks for the updates.