Associate Commissioner of the SEC switches to AT&T U-Verse

[TheRef]

Well if you wanted to know how contract negotiations for SEC Network are going, I present to you this tweet from one of the associate commissioners of the SEC.

Chuck Dunlap
@SEC_Chuck
RT @CHussey__SEC: Hussey house switching to AT&T U-Verse today! #SECNetwork pic.twitter.com/fkb5DAEpi1

Media preview
11:34am ? 27 Jun 2014 ? TweetDeck

[DownwardDawg]

Switching from?????? Uverse is not available where I live.

[TheRef]

Switching from?????? Uverse is not available where I live.

Doesn't say...you can only assume he's switching from some other provider that isn't offering SEC Network/isn't having a good negotiation time with the SEC Network.

[DownwardDawg]

I'm still waiting on Direct TV

[Dawg61]

ComCast will have it. I trust someone with influence will get this done for us. ESPNU went down the same way.

[Covercorner2]

I'm still waiting on Direct TV

AT&T bought DirectTV... you should be ok

[PassInterference]

AT&T bought DirectTV... you should be ok

That's not a done deal.

[Homedawg]

AT&T bought DirectTV... you should be ok

That's a long way from being completed. That won't have much affect on the sec network this fall. All that said, I think directv will get on board.

[Political Hack]

it will have zero impact this year. DTV will continue to operate as DTV until the merger is complete next year. As such, I don't see Direct being overly committed to negotiating anything for themselves since they're selling. AT&T will have to force them to keep X number of customers to ensure the merger goes through, but other than that they won't be paying additional money for new channels since they just sold themselves.

[fishwater99]

You better switch to U-verse if you can, or you will be missing games this fall.
It will take a while for other providers to add the SEC network.

[PMDawg]

If I had Direct, I would switch to U-Verse or Dish now. That way, you guarantee yourself the SEC Network. If Direct does come around, then you switch back to Direct at a much lower price than when you left. Win Win. Just don't sign a 2 year contract and pay the full price for whoever you switch to for the next two months. If Direct doesn't pick it up, then sign the 2 year contract at a great price with Dish/UVerse.

[chainedup_Dawg]

*Delete*

[Political Hack]

does comcast have it yet?

[engie]

Think it's grasping at straws to try to draw any bigger picture implications from that...

It's still 2.5 months before the network goes live. These things generally always get done at the last minute...

[Political Hack]

Think it's grasping at straws to try to draw any bigger picture implications from that...

It's still 2.5 months before the network goes live. These things generally always get done at the last minute...

that's what the companies who won't be picking up SEC network want people to think.

[engie]

that's what the companies who won't be picking up SEC network want people to think.

No -- that's reality of TV negotiations to anyone that has paid attention to them over time...

You really think companies are going to shun 3 SEC games/week in the southeast? There may be some holdouts elsewhere -- but it won't be down here.

[Political Hack]

No -- that's reality of TV negotiations to anyone that has paid attention to them over time...

You really think companies are going to shun 3 SEC games/week in the southeast? There may be some holdouts elsewhere -- but it won't be down here.

How the hell are you disagreeing with this? you're saying that TV providers don't want customers thinking that there's nothing to worry about? They are ok with consumer panic?

[fishwater99]

No -- that's reality of TV negotiations to anyone that has paid attention to them over time...

You really think companies are going to shun 3 SEC games/week in the southeast? There may be some holdouts elsewhere -- but it won't be down here.

I would be willing to wager that it's not done before the season starts, you will be missing some games. Comcast sucks too...

[Dawg61]

I think at worst the SECN will be available through the sports package for an extra $6-$10 a month.

[dawgindothan]

I would be willing to wager that it's not done before the season starts, you will be missing some games.

Agree with this. And if Comcast and Directv are willing to lose that group of customers who are going to switch right before the season, then it's going to be a while before they pick it up. Once they've shown ESPN/SECNetwork that they're willing to lose that initial group of customers, then Comcast and Directv are going to have all the leverage during negotiations. I figure Comcast and Directv will hold out for a year or two and drive the price down enough to finally pick it up.

[MadDawg]

I would be willing to wager that it's not done before the season starts, you will be missing some games. Comcast sucks too...

I'd be willing to bet that too, despite engie's typical "I know more than anyone" post about how it will never happen.

[dawgindothan]

I think at worst the SECN will be available through the sports package for an extra $6-$10 a month.

Someone correct me if I'm wrong on this, but I'm pretty sure this isn't possible. ESPN is requiring that the SECNetwork be carried nationally and available on the same cable plans that ESPNU is available on. This is why it's such a tough negotiation and a tough decision for the cable providers as to whether or not to pick it up. If it was as simple as offering it as part of the sports package that each cable subscriber can individually decide whether or not they want to pay an extra $5-10/mo for, then every cable provider would have already picked it up.

[Homedawg]

I don't know what will happen as far as directv and comcast in the short term. Long term I'm positive they will get it. But the fact is the only reason the dish network deal was done so fast is because disney, abc, Espn had dish by the balls, all the Espn contracts were getting set to expire and Espn forced dish networks hand to take it. If they hadn't taken it they would have had to pay even more for all the other networks that are a must Espn, etc.

[engie]

How the hell are you disagreeing with this? you're saying that TV providers don't want customers thinking that there's nothing to worry about? They are ok with consumer panic?

I'm telling you that every TV company in the southeast are going to sign onto the SECNetwork before aTm/SC starts the season off on Thursday night. And most of them will probably be last minute in the final 2 weeks leading into that game. I sincerely doubt that there's any holdouts by that time.

[engie]

I would be willing to wager that it's not done before the season starts, you will be missing some games. Comcast sucks too...

Name the wager that "I'm going to be missing some games".

Considering that I've got uVerse and all...

[engie]

Agree with this. And if Comcast and Directv are willing to lose that group of customers who are going to switch right before the season, then it's going to be a while before they pick it up. Once they've shown ESPN/SECNetwork that they're willing to lose that initial group of customers, then Comcast and Directv are going to have all the leverage during negotiations. I figure Comcast and Directv will hold out for a year or two and drive the price down enough to finally pick it up.

They holdout a "year or two", they'll love half their customer base in 30% of the TV households in the country that currently reside in SEC territory... If you think losing 5-10 million customers combined "gives them the leverage", well, I just don't know what to say....

This isn't a B1G Network or LHN situation. I don't know how many times that needs to be explained in detail before people understand how this situation and negotiation are different. Cable offices are going to burn in week 1 in Alabama if people can't see Arky @ Auburn.

[Political Hack]

I'm telling you that every TV company in the southeast are going to sign onto the SECNetwork before aTm/SC starts the season off on Thursday night. And most of them will probably be last minute in the final 2 weeks leading into that game. I sincerely doubt that there's any holdouts by that time.

you're talking about step B. You disagreed with me on step A.

What do the providers want consumers to think right now about this deal? Easy answer: that there's nothing to worry about. To that, you said "no."

[engie]

you're talking about step B. You disagreed with me on step A.

What do the providers want consumers to think right now about this deal? Easy answer: that there's nothing to worry about. To that, you said "no."

The disagreement was in reference to the "companies that won't be picking up the SECNetwork" part that you are leaving out now...when I don't believe those companies are going to exist. Maybe a single holdout. But everyone else is going to fall in line and that company is going to get destroyed for it down here.

Of course they don't want their offices burning down 2 months before the network goes live. That doesn't, in any way, mean that they won't be carrying the network by opening weekend though. It's just looking for implications that actually don't exist in the current tense.

[dawgindothan]

If you think losing 5-10 million customers combined "gives them the leverage", well, I just don't know what to say....

Who knows whether your 5-10 million "lost" customers stat is correct, but it's irrelevant regardless. A cable company will only consider their own customers in isolation. Some total number of potential lost customers from all cable companies in a region of the country won't factor in to any one cable company's decision.

If Comcast, Directv and others don't pick up the SECNetwork by early Aug and large numbers of their subscribers start switching to Dish or Uverse, that absolutely gives them leverage in negotations with ESPN. It shows ESPN that they're willing to lose that initial wave of subscribers leaving in order to negotiate a better price in the future. If Aug 28 rolls around and Comcast and Directv still don't have the SECNetwork, then they will have a ton of leverage. They've already lost the subscribers they're going to lose. At that point, might as well wait it out until ESPN agrees to drop the price by 20-30%. This is exactly what happened when the B1G Network launched even though you claim "this isn't a B1G Network situation" whatever that means.


I don't know how many times that needs to be explained in detail before people understand how this situation and negotiation are different. Cable offices are going to burn in week 1 in Alabama if people can't see Arky @ Auburn.

The people that run these mega cable companies aren't stupid. They're doing all kind of modeling and analysis trying to determine how many customers they might lose if they don't pick it up and how many customers they might lose if they do pick it up because of the increase of their monthly cable bill. Believe it or not, a much higher % of cable subscribers in the SEC footprint don't care about the SEC Network than do care about it. And the ones that don't care about it don't want to pay for it.

The cable companies decision of whether or not to pick it up by mid August will all come down to dollars and cents. If they determine through their analysis and modeling that it would be more costly to lose that initial group of subscribers, then they'll pick it up and pass the cost off to all their subscribers. If they determine that it would be more costly to pay full price now, they'll allow that initial group to switch to Uverse or Dish, wait it out, and pick it up once they've convinced ESPN to drop the price. It's that simple.

[DownwardDawg]

I bet Direct carries it before the 1st game. If not, I'll switch and never look back.

[Political Hack]

The disagreement was in reference to the "companies that won't be picking up the SECNetwork" part that you are leaving out now...when I don't believe those companies are going to exist. Maybe a single holdout. But everyone else is going to fall in line and that company is going to get destroyed for it down here.

Of course they don't want their offices burning down 2 months before the network goes live. That doesn't, in any way, mean that they won't be carrying the network by opening weekend though. It's just looking for implications that actually don't exist in the current tense.

there are already companies that haven't picked up the sec network and want you to think that they will to help mitigate customer loss. I think it's very likely that some networks won't pick it up by week 1. Eventually, you're right, everyone will have it. It's just that some will have it sooner than others. Those companies without it will want people thinking...............

"IT's COMING"

[engie]

Who knows whether your 5-10 million "lost" customers stat is correct, but it's irrelevant regardless. A cable company will only consider their own customers in isolation. Some total number of potential lost customers from all cable companies in a region of the country won't factor in to any one cable company's decision.
Really? So 30%, on average, of a total subscriber base nationally "won't factor into a company's decision"? The southeast isn't some little piece of the pie like you want to pretend that it is. It's a huge piece of the pie. And there is NOTHING on cable more important to that 30% than SEC football...


If Comcast, Directv and others don't pick up the SECNetwork by early Aug and large numbers of their subscribers start switching to Dish or Uverse, that absolutely gives them leverage in negotations with ESPN.
How? ESPN can continue to drain them dry. Those cable companies are the ones actually losing money. It's funny that you don't think the company that already makes up an absolutely huge % of your cable bill is willing/able to play hard ball and beat these big, bad cable companies that according to you hold all the cards...


It shows ESPN that they're willing to lose that initial wave of subscribers leaving in order to negotiate a better price in the future. If Aug 28 rolls around and Comcast and Directv still don't have the SECNetwork, then they will have a ton of leverage.
How will they have any more leverage on August 28 than they had before? It's THEIR offices that are going to burn down. Not ESPN's.


They've already lost the subscribers they're going to lose.
I disagree. Plenty of people will wait it out for a little piece of the season before swithing. The question is -- are they willing to stonewall ESPN and lose 30% of their total subscriber base over $0.25? ESPN has sure kicked all their asses in negotiations throughout history up until this point.


At that point, might as well wait it out until ESPN agrees to drop the price by 20-30%. This is exactly what happened when the B1G Network launched even though you claim "this isn't a B1G Network situation" whatever that means.
B1G has 1 game per week and it was an inventory leftover after their tier 1 and tier 2 contracts had drained them dry. Their inventory wasn't under one roof like the SECNetwork is -- and they lacked the power to put premiere games on the network like the SECN has. And the SECNetwork is putting 3 per week. Nevermind the amount that the SEC is more invested in college football. The B1G has what? 2 top 30 college football TV markets? While the SEC has what? 12 or more?

The B1G launch had 1/10 the power and leverage that the SECNetwork has.


The people that run these mega cable companies aren't stupid. They're doing all kind of modeling and analysis trying to determine how many customers they might lose if they don't pick it up and how many customers they might lose if they do pick it up because of the increase of their monthly cable bill. Believe it or not, a much higher % of cable subscribers in the SEC footprint don't care about the SEC Network than do care about it. And the ones that don't care about it don't want to pay for it.
But the people that run the Worldwide Leader are stupid, apparently? That's why all these cable companies took their ball and went home and decided not to carry the most expensive channel on TV(ESPN)**

And I'd love to see your data about "all the people in the SEC footprint that don't care about SEC football"...


The cable companies decision of whether or not to pick it up by mid August will all come down to dollars and cents. If they determine through their analysis and modeling that it would be more costly to lose that initial group of subscribers, then they'll pick it up and pass the cost off to all their subscribers. If they determine that it would be more costly to pay full price now, they'll allow that initial group to switch to Uverse or Dish, wait it out, and pick it up once they've convinced ESPN to drop the price. It's that simple.
True. Do I need to run these numbers for you?

[dawgindothan]

How will they have any more leverage on August 28 than they had before?

Because at that point they will have lost the customers they were going to lose by not picking it up. Potential lost customers is ESPN's primary leverage at this point in the negotiation process. On Aug 28, if Comcast and Directv haven't picked up the SECNetwork, they will at that point have lost those customers who were planning to switch. Those customers will have already switched to other cable providers. I can't tell if you really can't see this or if you're just being argumentative.


Plenty of people will wait it out for a little piece of the season before swithing.

I disagree with this, but we're both just stating our opinions here so who really knows.


But the people that run the Worldwide Leader are stupid, apparently?

Why would cable company executives not being stupid make ESPN execs stupid? Your ability to read something into something that isn't there is astonishing.


**This is my last post in this thread. We'll see how it all shakes out in several weeks.

[Homedawg]

Espn has no reason to lower it's price. Those that want it will go to a provider that carries it, for the most part. No different than Espn 2 and Espn u. Espn will win this. Read what I said about their negotiations w dish. That's all true. Everyone else at some point will bow down too!

[engie]

Because at that point they will have lost the customers they were going to lose by not picking it up. Potential lost customers is ESPN's primary leverage at this point in the negotiation process. On Aug 28, if Comcast and Directv haven't picked up the SECNetwork, they will at that point have lost those customers who were planning to switch. Those customers will have already switched to other cable providers. I can't tell if you really can't see this or if you're just being argumentative.
So, you think 100% of customers that are demanding the SECNetwork are going to be switched by August 28th? Really? Probably 30% at most. They still stand to lose a ton of customers in the first couple of weeks of the season that bought into their provider's "ongoing negotiation should come to an end any day now" pitch. Then, they stand to lose a whole additional phase of customers as that percentage of locked-in contracts begin to expire. Providers refusing to carry the network will result in a relatively consistent loss of customers for a period of at least one year.



Why would cable company executives not being stupid make ESPN execs stupid? Your ability to read something into something that isn't there is astonishing.
You've implied that cable companies have the leverage and will force ESPN to cave. Talking about how smart those executives are without recognizing their counterparts as having DOMINATED them in past negotiations is disingenuous. By implying that cable companies will "win" against ESPN, you obviously think they are "smarter" than the guys they are negotiating against, despite the past negotiations of the World Wide Leader leaving us with the singlemost expensive channel on our TVs by about 500%. How did they manage that -- since so many people around the country allegedly don't care about sports?

[RossDawg82]

Honest question here:
1) since att bought direct tv, what is direct tv's incentive to move on it? Also, if there is a choice on their part, would att put somewhere in that giant contract that they must carry it. If they didn't carry it the stock would plummet. Not a business guy but just wondering

[Schultzy]

Honest question here:
1) since att bought direct tv, what is direct tv's incentive to move on it? Also, if there is a choice on their part, would att put somewhere in that giant contract that they must carry it. If they didn't carry it the stock would plummet. Not a business guy but just wondering

If that's the case then ATT is the one doing the real negotiating there. Also, every single carrier will be signed up before kickoff, probably after August 1st though. The pressure will increase for both parties (sec network and each carrier)as the season closes in. Lots of dollars at play here for the sec network and the Directv, Comcast companies.

Way too much at stake here not to try and hold out for the best deal for both sides. Remember, the sec network doesn't want to lose directv customers and directv can't just say no to sec network. But both will hold out until late in the game.

[RossDawg82]

I think/hope they do as well. I'm not in a position right now to cancel my direct tv contract, but in the end I'm sure they will have it. It doesn't make sense not to

[Barking 13]

I just hope cableone gets their Shiite together..

[engie]

I would be willing to wager that it's not done before the season starts, you will be missing some games. Comcast sucks too...

I'd be willing to bet that too, despite engie's typical "I know more than anyone" post about how it will never happen.


Clay Travis @ClayTravisBGID
Comcast tells Outkick they are working out "final details" on @secnetwork and expect agreement in "near future." http://msn.foxsports.com/college-football/outkick-the-coverage/comcast-and-sec-network-near-agreement-063014 …

#nailedit