Actually I think the DirecTV deal for the PAC 12 network is a little more complicated than that. I'm pretty sure that the B10 Network is carried nationally by DirectTV as part of the Choice package, not on the sports tier. I think the PAC may be looking for the same deal for Pac 12 National and then the regional available on the sports tier, with a minimum offer of overflow channels like Dish has or preferably tacking on the regional feeds in the sports tier. The PAC is likely arguing what is the difference between us and the B10 and DirecTV is likely fighting to just add them to the sports tier...at least that is my guess based on the language coming out DirecTV.
Interesting point - I really hope that's not the hangup because I don't see it happening. Scott has said '
fundamentally similar' to Dish, which makes it sound like 6 states in market, rest in sports tier IMO. But he has alluded to wanting the same deal as the BTN (though at a lower rate). Dish has dropped BTN, any maybe they want to push it back DOWN to the same type of deal that P12 has. If national coverage means that much to Scott, he should lower the national rate to whatever will get the station distributed while still keeping the in market rate high. Hell, i'd consider giving it away for free to distributors (that have enough in market customers) on the condition that they guarantee to put it on a base tier.
What complicates this deal is that I believe at the time the original B10 deal was signed, DirecTV was owned by Fox, who also had a 49% stake in the network, so it probably made sense at the macro-corporate level to give the network as broad of distribution as possible. Sports oriented channels are expensive, and DirecTV is likely fighting against that deal because it adds a decent chunk to their bottom line costs for the Choice tier programming that can't be recouped as easily as it can on a sports tier where people are willing to pay a premium for that type of programming. A big part of this is DirecTV likely trying to set a precedent for the new Lakers channel and other planned sports networks like the SEC's upcoming network.
Definitely partnering with Fox got the station going on Dierctv... and it seems like the cable companies guaranteed enough money up front that there was NO risk of the p12 network losing money short or long term, which is great compared to the joke of the Mtn (P12 is no MWC to start with). I was worried that those terms were so favorable to the cable companies that neither sat would come on board, but if cheap charlie signs up for P12, it can't be that bad of a deal can it?
As for the threat of the lakers channel raising rates, it will be interesting to see how much of a 'regional fee' Directv charges LA customers if/when they agree to carry the lakers. Seems like TWC wants $3.95 for the station per sub per month! But because of DTV's surcharge, they could pass that amount off on LA customers and not average it out over the country. SEC network is a different problem because the home markets aren't all that big population wise, but the national appeal might be greater. So they might want a larger per sub nationwide amount, which means DTV needs to hit at P12 now if the national rate/carriage tier isn't right.
Now if I'm wrong and DirecTV has refused an offer to put it on Choice in just the home footprint and the sports tier everywhere else like Dish took, then I dunno. In that case DirecTV is just being obstinate and maybe trying to squeeze them for an extra piece of the ad revenue or cheaper rates or something given their leverage as the sports leader and commercial sports bar accounts.
I think choice in the 6 states and sports tier everywhere is the happy medium. I dunno. Hopefully. Then they can tell still tell the SEC exactly what deal they will get and it won't affect other markets' prices. DTV can also pass through the costs to the sub by market, so they don't even lose. Customers, unlike on cable, can opt out of regional networks altogether too.
Of course now looking at the Lakers/TWC channel rate, I would guess DTV is going to play hardball with them too, and DTV figures they don't want to pay for P12 when all the big So Cal sports fans will leave DTV anyway over no Lakers. I think So Cal is 40% of the subs in the entire P12. If no deal with the lakers is reached, the fans that stay with DTV will be the fans who don't care about sports, and would stay whether or not the P12 is included in DTV's lineup.
