Pac-12 Networks Budget Projections Show Revenue Decline For FY '19
Internal budget projections for the Pac-12 Networks show a 6% ($8.1M) "year-over-year decline in total revenue," a 22% decrease in net advertising revenue and a 30% "plunge in digital revenue," according to Jon Wilner of the San Jose MERCURY NEWS. Net affiliate revenue, the "largest bucket, by far, was expected to drop" by 5%. The declines were "caused by the termination of the carriage agreement with U-verse." But perhaps "most significantly, the Pac-12 Networks aren’t expected to increase the amount they distribute to the campuses." The $33.475M "projected for the schools" in the current FY -- which split 12 ways is $2.8M per campus -- was the "same amount pegged" for FY '18. All in all, the networks were "budgeted to generate" $127.4M in revenue against $92.5M in "total operating expenses" in FY '19. However, Wilner notes the figures "should be considered approximations" because the budget was "provided to the schools last year." The figures also provide an "unprecedented look at the financial underpinnings of the seven-year-old media company" (San Jose MERCURY NEWS, 4/24).