Cox Communications Officially Signs on for SECNetwork

[engie]

http://espnmediazone.com/us/press-releases/2014/07/cox-communications-to-carry-sec-network-for-august-14-2014-debut/

ESPN and Cox Communications have reached an agreement for carriage of the SEC Network on Cox when the multiplatform network launches on August 14, 2014. The channel will be available to fans and followers of the Southeastern Conference in all Cox markets. Cox subscribers will also have authenticated access to additional live events scheduled for the SEC Network?s digital platform, with the ability to watch SEC Network content anytime, anywhere on their television, computer, tablet or mobile device.
?Cox is home to some of the biggest fans with five SEC schools in our markets,? said Jill Campbell, executive vice president and chief operating officer, Cox Communications. ?This is great news for alumni and fans across our footprint who will enjoy all the action and rivalries that have become synonymous with SEC sports.?
Added Sean Breen, Disney and ESPN Media Networks senior vice president, affiliate sales: ?The ground swell of consumer and affiliate demand increases by the day, and we continue to build on our momentum with the announcement of Cox Communications as our latest distributor that will deliver the SEC Network to fans at launch.?
The SEC Network and its accompanying digital platform will air more than 1,000 live events in its first year, including at least 45 exclusive SEC football games, more than 100 men?s basketball games, 60 women?s basketball games, 75 baseball games, 50 softball games and events across all of the SEC?s 21-sports. The network will be an all-access pass to nationally competitive events, news and information, expert analysis, classic games and in-depth features on the most storied conference in college athletics.
SEC Commissioner Mike Slive said: ?The addition of Cox is another very important step in the development of the SEC Network, bringing millions more viewers nationwide to the network when it launches on August 14. As one of the largest cable television distributors in the U.S., including five states in the SEC footprint, this agreement with Cox has a significant impact on exposure for the SEC.?
?We are pleased to expand upon our growing list of distributors who have signed agreements for the SEC Network launching in a little over a month,? added Justin Connolly, ESPN senior vice president, college networks. ?We look forward to serving Cox customers with an unparalleled offering of more SEC content than ever before.?
About Cox Communications
Cox Communications is a broadband communications and entertainment company, providing advanced digital video, Internet and telephone services over its own nationwide IP network. The third-largest U.S. cable TV company, Cox serves more than 6 million residences and businesses. Cox Business is a facilities-based provider of voice, video and data solutions for commercial customers, and Cox Media is a full-service provider of national and local cable spot and new media advertising.
Cox is known for its pioneering efforts in cable telephone and commercial services, industry-leading customer care and its outstanding workplaces. For seven years, Cox has been recognized as the top operator for women by Women in Cable Telecommunications; for five years, Cox has ranked among DiversityInc?s Top 50 Companies for Diversity, and the company holds a perfect score in the Human Rights Campaign?s Corporate Equality Index. More information about Cox Communications, a wholly owned subsidiary of Cox Enterprises, is available at www.cox.com and www.coxmedia.com.

[Jack Lambert]

The next four to five weeks you are going to see a lot of companies come on board. I just don't think them or the SEC is going to wait until the last minute. They will lose too many customers if they delay. We want resolve and they know it.

[engie]

There's another 6 million subscriptions in the bucket. Assuming that the Comcast deal gets done, which is reportedly very close and they've promised to carry it by launch day, that puts it in 48.6 million homes on day 1. And we're still over a month from launch.

That makes it worth $14 mil+ to MSU on day 1 -- just in SUBSCRIBER FEES -- just to the SECNetwork itself. A number that's likely to grow significantly from our split of the advertisement revenue.

[DawgPoundRock]

When will charter pull the trigger I wonder

[DudyDawg]

That makes it worth $14 mil+ to MSU on day 1 -- just in SUBSCRIBER FEES -- just to the SECNetwork itself. A number that's likely to grow significantly from our split of the advertisement revenue.

Do you know the percentages of what we get and what we get it from?

[engie]

Do you know the percentages of what we get and what we get it from?

I'm projecting partially based on our other contract(s) with ESPN -- and partially on the structure of the B1G Network. 50/50 split of total revenue generated by the channel -- then the SEC splits 15 ways with the conference operating off of the 15th share(So, MSU gets 3.33% of everything). They have not actually told us the percentages -- and probably won't. We won't really know for sure until the first tax returns most likely...

I'm pretty confident on the 50/50 subscriber fee split. I'm less sure on advertisement split, but am confident that Slive wouldn't have left that potential hundreds of millions on the table for ESPN without having our hand in it as well. Pretty sure this is split 50/50 for the B1G Network -- and I have a very, very hard time envisioning a scenario where Slive would have accepted any less than the same deal...

[DudyDawg]

So, basically 50% is split fifteen ways, with the other 50% going to the network?

I would assume the revenue from ads isn't split evenly in the B1G and other similar networks, and instead depends on the schools playing? Would that likely be how ours operates? Or is that part of the 15 splits of 50%?

[engie]

So, basically 50% is split fifteen ways, with the other 50% going to the network?
Correct


I would assume the revenue from ads isn't split evenly in the B1G and other similar networks, and instead depends on the schools playing? Would that likely be how ours operates? Or is that part of the 15 splits of 50%?
Pretty sure it's going to be an even split regardless. The B1G rarely gets their elite teams because of the different company(ESPN) in charge of their Tier2 content, thus only leaving bad games for the network. Another reason the SECNetwork should dominate it...

[DudyDawg]

Oh okay. Thanks for the info.

[Dawg496]

@engie, are you assuming that all operating costs will be covered from the 50% cut ESPN gets? I would imagine that the SEC's half would be calculated out of net profit not gross revenue, but I have no source on that.

[thedawginme]

@engie, are you assuming that all operating costs will be covered from the 50% cut ESPN gets? I would imagine that the SEC's half would be calculated out of net profit not gross revenue, but I have no source on that.

Agree. Not sure using the total revenue number, as opposed to some percentage of profit, makes sense as a deal struck.

But with the TV ad profit distribution counted as well, i can see the total deal out of the ESPN/SECN deal coming to around those $15M targets soon.