Here is what the ACC Network is up against as the launch nears:
When the ACC and ESPN made a deal years ago to offer a conference-dedicated slew of programming, the so-called cord cutters hadn’t yet sharpened their knives and scissors. Cable TV was still in its prime, the most common way for viewers to get the games.
What has happened since is an important distinction in trying to figure out the future of the ACC Network. While dozens of smaller cable companies and streaming services have signed up to carry the ACC programming, no major cable provider has agreed to yet. And the money those cable companies would pay ESPN could determine what distribution each ACC school receives annually.
If ESPN doesn’t sign the ACC Network to these major carriage deals, its advertising sales will suffer. Meanwhile, the cable companies are already losing revenue with cord-cutters who have been dropping cable service by the millions. DIRECTV NOW, Comcast, Spectrum and AT&T U-verse lost more than 1.3 million subscribers in the second quarter of 2019, which is about 14,000 every day.
If the trend continues, more than 5 million cable customers will be lost by the end of the year. That may be why ESPN and the major cable companies have not been able to make a deal. Whatever they pay, the cable providers have to charge their subscribers to get their money back, and they don’t want to chase away more of them.
Some cable companies will see their subscriber loss double by the end of the year, according to a story on Cord Cutter News. And if the projected revenues are not filtering down, either ESPN has to cover the losses or the ACC schools will not realize the increase in annual distribution they are expecting and have already invested $10-15 million building new production studios on each campus.
The ACC Network seems like a victim of bad timing, caught in the throes of cord-cutting from cable providers but before many people are satisfied switching to unfamiliar streaming services to get their favorite games. With less money coming in than projected, either ESPN/Disney will cover such losses or the member schools won’t have the expected increase in revenues.
Depends on who guaranteed what to whom.
Podcast: Play in new window | Download
Subscribe:
Related Stories
‹
Chansky's Notebook: Bailing OutRoy Williams probably had reasons for the soft statements. Carolina fans reacted strongly to the video of a team party after the win over Duke. Only Armando Bacot and Day’Ron Sharpe were in the video, but a statement from players and managers said it was supposed to be a closed event that other students and […]
Chansky's Notebook: Please, Go In!UNC men's basketball faces what is an early season must-win at Georgia Tech. Art Chansky says a look at the statistics is painful, but not terminal.
Chansky's Notebook: Leaky Steps UpDean Smith used to say he’ll be happy with a one-point win. The legendary UNC basketball coach struggled spiritually between playing well according to his teachings, regardless of outcome, and winning no matter how poorly you play. Since his job was to win and he was so competitive, he chose the latter. If he was […]
Chansky's Notebook: Rock(et) StarBen Kiernan was UNC’s MVP of the Notre Dame game. When Mack Brown went over the 31-17 loss, he gave mixed reviews to the two main branches of his Tar Heels’ play. He said the offense was good in the first half and then “went dead” in a scoreless second half. He praised the Tar […]
Chansky's Notebook: Goals and AmbitionsGarrison Brooks has both opportunity and pressure. On paper, the ACC looks as weak as it has been in some time due to widespread losses to graduation and early departures to the NBA, and no sure-shot superstars in the incoming recruiting classes. A beneficiary of this development is Brooks, the Carolina senior who was second-team All-ACC last year and earned the league’s […]
Chansky's Notebook: A COVID DebateClemson was livid that Florida State wouldn’t play the game. Let’s be lawyers, and make a case for each of the teams that did not play its scheduled game over the weekend. Clemson had traveled to Florida State when it learned a player with mild symptoms who had practiced with the team all week tested […]
Chansky's Notebook: Draft DodgersCarolina and Duke players have lost ground in the NBA draft. Like everything else with sports in the COVID era, the NBA draft goes off tonight after being postponed for five months. And if you look at the various mock draft boards, certain things jump off your screen. First of all, about half the names […]
Chansky's Notebook: A Two-Thirds Bet?What if Phil Mickelson and Mack Brown amended their bet? With the Masters being moved back to this weekend due to COVID, perhaps the three-time champion should revisit the fun bet he made with Carolina’s football coach back in 2003. The famed lefthander was still seeking his first Green Jacket when he partnered with the Texas football coach at the […]
Chansky's Notebook: Kudos To CarolinaUNC teams did a commendable job beating the odds. Who among us thought the ACC would be playing football and other fall sports last summer? With the pandemic upon us and the medical experts still learning, the seasons looked like a long shot. While other conferences pumped the breaks and/or called off football, the ACC […]
Chansky's Notebook: Extra MotivationCarolina’s schedule could be working to its advantage. When the COVID-revised list of games came out, it looked troublesome for the Tar Heels with Virginia Tech and Florida State basically bookending Notre Dame and Miami with four rivalry games in a row right in the middle. Coaches usually don’t like that because it takes a […]
›
Comments on Chapelboro are moderated according to our Community Guidelines