Why should Nebraska consider joining the Big Ten Conference if an invitation comes its way?
The Big Ten Network provides 6.5 million reasons why a school might take an invitation seriously.
That’s the projected payout to each school for the 2009-10 season, according to information provided to the St. Louis Post Dispatch by the Illinois athletic department.
That’s nearly half of all the TV revenue (an estimated $14.9 million) Illinois is expected to take in this year, the St. Louis newspaper reported.
Payouts during the Big Ten Network’s first two years were $6.1 million and $6.4 million, respectively.
Money is one thing. Recruiting is another.
In just three years, the Big Ten Network has gone from minimal reach within its own eight-state footprint to now being available in an estimated 73 million households across the county and in 19 of the top 20 media markets.
The success of the network is why Big 12 Commissioner Dan Beebe recently visited with the Pac-10 about forming an alliance, with discussions focused on TV contracts.
When you consider all this, you can see why schools rumored in expansion talks — Missouri, Rutgers, Notre Dame, Pittsburgh, Syracuse and Nebraska — would take an invitation seriously.
With conference expansion such a hot topic now, the Big Ten Network declined interview requests from the Lincoln Journal Star.
But BTN President Mark Silverman is on record saying he’s not surprised by the network’s success and is anxious to see what happens next.
“To me, there was never a question if the network would be successful,” Silverman told the Columbia (Mo.) Daily Tribune. “The questions was, ‘How successful would we be? Would we be able to really create a significant enterprise here?’”
Indeed, they have.
Here’s a look at the network and what it does for its member schools:
What is the Big Ten Network?
Headquartered in Chicago, the network is a joint venture between the conference (51 percent shareholder) and Fox Cable Networks (49 percent). The network launched Aug. 30, 2007.
Why was it created?
To provide conference teams with more national exposure in addition to its existing TV agreements with ABC, ESPN and CBS.
What’s to see on it?
The network carries 350 live sports events, with nearly all of them in high definition.
Each season, the network airs 35 to 40 football games, 105 regular-season men’s basketball games, 55 women’s basketball games, a variety of Olympic sports events, a nightly highlight show, coaches’ shows, classic games and more.
Who can watch BTN?
The network is available in an estimated 73 million households and in 19 of the 20 biggest media markets in the United States.
In Lincoln, DISH and DirecTV subscribers have access to the network. Time Warner does not carry it, at least not yet.
How successful has it been?
The short answer: very.
According to industry analyst Derek Baine of SNL Kagan, the BTN has nearly doubled its initial profit and generated $204 million in revenue in 2009.
Revenue is derived primarily from cable and satellite subscription fees, with additional revenue coming from sales of advertising.
Cable and satellite companies pay the network a set fee per subscriber per year.
The network receives 88 cents per subscriber per month inside its eight-state footprint and 5 cents outside, according to Baine.
The Big Ten Network is considered one of the most successful launches in cable or satellite history, becoming the first to reach 30 million subscribers within its first 30 days on the air.
How do Big Ten schools benefit from the network?
Other than the exposure to school’s sports, athletes and coaches … money is the biggest way.
That’s why Jake Crouthamel, former athletic director at Syracuse (1978-2005), expects Pittsburgh to join the Big Ten if offered an invitation.
“They’re going to jump,” he told the Pittsburgh Post-Gazette. “It’s about money. The whole thing’s about money.”
The Big Ten Network’s website even touts its economic impact: “From a revenue standpoint, the network has provided an additional source of funds at a time of continued decreases in state support.”
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