Topic: BTN-Comcast
If you haven't heard, the Big Ten Network and Comcast have come to an agreement regarding carriage of the channel. Its a broad based agreement. What I've understood from the agreement is the following:
- The Big Ten Network gets to be carried on expanded basic cable in the eight Big Ten states until Spring of 2009, when Comcast can decide to move the channel to a broadly distributed digital tier of service. The exception to this is Comcast's Philadelphia area systems, who will start out with the channel on digital basic cable.
- Comcast gets various content for video-on-demand and their internet portal site, Comcast.net. They also can place the channel in their Sports and Entertainment Tier outside of the Big Ten states. Some reports say this is an option and a system does not have to carry the channel if they do not desire to do so.
Both sides won something in the battle, though neither got the favorable terms they desired. The BTN gets more eyeballs for their games and that can only help them and advertisers. They do not get consistent coverage as the channel can get moved down to a digital tier, though digital cable has become more of a standard across the country. For example, Comcast has switched much of their Chicagoland systems to be digital and most customers now require a digital set-top box in that area. Advertisers, particularly FOX who subbed in a lot of advertising inserts of their programming, will be pleased and be much more inclined to buy spots.
Both sides took a public beating, but Comcast took one because customers did have a choice to switch away from their service if they wanted to get the channel right away (Dish Network and DirecTV). Comcast may be able to stem the flow of customers away from their system. Comcast was able to get the channel at a reduced rate.
Consumers also won. Outside of the Big Ten states, if you don't want to pay for the tier that could provide the BTN, you don't have to. Comcast pushed that point-of-view in many of their ads. Chances are that you may be already paying for this package if you watch CBS College Sports, NBA TV, NFL Network, Fox Soccer Channel and other specialty sports networks.
Here's some other things to talk about:
- By not getting full time expanded basic cable, did the Big Ten come out as a loser in the deal? The BTN is showing the 2nd or 3rd tier football & basketball games plus other sports that do not get as much coverage, but is the intent of the network to eventually cut out the middle man (ie. ABC/ESPN & CBS) and have the BTN get all games? If that is the intent, and the BTN partnership runs 15 years longer than the deals with ABC/ESPN do, they may have come up short.
- The SEC has been watching over this like a hawk. Supposedly they've made their decision on whether they will do an SEC network but it will not be announced until at least the SEC media day in late summer at the earliest. If they want a network of their own, I have no doubt they are taking notes as to what the perceived missteps of the Big Ten Network and the mtn., the MWC's regional cable network, were in getting their product to the masses.