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Distribution Talks, Big Ten, SEC Supremacy Has Pac-12 Networks Searching For Footprint

The Pac-12 Conference "opted for sole ownership" of its network, and as it "enters its fourth season on the air, the returns on that decision have been mixed," according to Austin Meek of the Eugene REGISTER-GUARD. On the "plus side, the league controls its own programming, which allows the Pac-12 to televise more Olympic sports than any other conference." It also "retains full control of a large asset and stands to win big if profits soar." However, the "struggle for distribution means the network hasn’t been as profitable as some models predicted." Though the Pac-12 "faces a significant revenue gap compared with the Big Ten and the SEC, the existence of a conference-owned network at least ensures a stake in the game." The venture has "benefited the league in multiple ways, but it hasn’t created the financial windfall some predicted." A "stalemate with DirecTV means the Pac-12 Network hasn’t generated much money for the schools, at least when compared with other conference networks." The SEC distributed $31.2M to each school for '14-15, as well as a reported $5M per school "generated by the SEC Network." The Big Ten reportedly distributed $30.9M, including $7M "to each school from the Big Ten Network." The Pac-12 "doesn’t disclose its annual payouts," but the Univ. of Oregon budgeted $22.6M in NCAA/Pac-12 revenue for '14-15, a figure that "includes NCAA Tournament revenue, bowl revenue and TV money." The San Jose Mercury News reported that the "per-school payout" from the Pac-12 Networks is roughly $1M. The league "isn’t hurting right now, and any panic would be premature." But schools are "paying attention, realizing the Pac-12 Networks needs to perform if they’re going to keep pace with their peers." A source cautioned that negotiations with DirecTV is "not a slam dunk" for the Pac-12 Networks. The "sticking point all along, DirecTV’s insistence on a lower per-subscriber fee than the Pac-12 charged other providers, won’t magically dissolve with new ownership" after the acquisition by AT&T (Eugene REGISTER-GUARD, 8/2).

DIRECT TO CONSUMER: In California, Michael Lev reports Pac-12 Networks President Lydia Murphy-Stephans "reiterated the conference’s desire to achieve full distribution" with DirecTV. Murphy-Stephans "wouldn’t -- or couldn’t -- say when negotiations would commence." However, she said, “We’re confident we will be meeting with them before the football season starts." The league also does not have carriage deals with Charter and Verizon, and Murphy-Stephans said, “We, in our position, can’t control distribution. The best we can do is offer the best product at very fair prices. We’ve done a lot of research on how Pac-12 Networks are priced. We’re very fairly priced. Seventy other providers thought so, and they did a deal with us" (ORANGE COUNTY REGISTER, 8/4).

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