[Redrum]

About 3 a.m. the bleary eyed Pac-10 rep would look at his near-comatose Direct TV counterpart and say:  "OK... 60 cents per subscriber with a sliding scale increase based on actual subscriptions to be capped at  X amount in the second year.... Now, let's go to Denny's and get the Magnificent Seven Omelet and Pancake Special. "  To which the Direct TV guy would say,  "OK, but you have to drive."

What I hate is Stanford embracing this need to lie as routine face-saving.  They are NOT negotiating day and night or night and day.  That kind of negotiation only happens when both parties have both something simultaneously to gain and to lose.  So they work hard to make the deal happen.  Direct TV has nothing to lose in this because they're already doing OK with things as they are. This deal is not strategic.  Direct TV has little to gain because they've run the numbers and know demand isn't that strong in large swaths of the country.

[Redrum]

About 3 a.m. the bleary eyed Pac-10 rep would look at his near-comatose Direct TV counterpart and say:  "OK... 60 cents per subscriber with a sliding scale increase based on actual subscriptions to be capped at  X amount in the second year.... Now, let's go to Denny's and get the Magnificent Seven Omelet and Pancake Special. "  To which the Direct TV guy would say,  "OK, but you have to drive."

What I hate is Stanford embracing this need to lie as routine face-saving.  They are NOT negotiating day and night or night and day.  That kind of negotiation only happens when both parties have both something simultaneously to gain and to lose.  So they work hard to make the deal happen.  Direct TV has nothing to lose in this because they're already doing OK with things as they are. This deal is not strategic.  Direct TV has little to gain because they've run the numbers and know demand isn't that strong in large swaths of the country.

[oman]

I'd heard they were eventually planning on providing hour-long edited versions of the games afterwards, though if it's on the website now I've missed it. Basically if you don't catch it the first time, looks like you're relying on a replay. (They're replaying Utah v. Northern Colorado, so...maybe?)

Yep.  I am assuming kind of an ESPN3 model for subsribers, but I haven't really had a chance to look through the website.  Which appears to me a tad un-user friendly.

[oman]

I'd heard they were eventually planning on providing hour-long edited versions of the games afterwards, though if it's on the website now I've missed it. Basically if you don't catch it the first time, looks like you're relying on a replay. (They're replaying Utah v. Northern Colorado, so...maybe?)

Yep.  I am assuming kind of an ESPN3 model for subsribers, but I haven't really had a chance to look through the website.  Which appears to me a tad un-user friendly.

[Hank 91]

So this afternoon I called DirecTV to ask when I might expect to see the Pac-12 Networks on my television. Here's the transcript of that conversation:

Rep: Can you hold? It might be a minute or two.
Me: Sure.
Two minutes pass...
Rep: Sir, can you spell the name of the network you're calling about? Is it P-A-C-K...
Me: No. It's P-A-C and the number twelve.
Rep: I'm sorry, that network is not available, but I encourage you to check our website...
Me: Can you forward my concern to the powers that be? I'd really like to have the Pac-12 Networks.
Rep: I will forward that concern.

I have no reason to believe that she forwarded this concern.

[Hank 91]

So this afternoon I called DirecTV to ask when I might expect to see the Pac-12 Networks on my television. Here's the transcript of that conversation:

Rep: Can you hold? It might be a minute or two.
Me: Sure.
Two minutes pass...
Rep: Sir, can you spell the name of the network you're calling about? Is it P-A-C-K...
Me: No. It's P-A-C and the number twelve.
Rep: I'm sorry, that network is not available, but I encourage you to check our website...
Me: Can you forward my concern to the powers that be? I'd really like to have the Pac-12 Networks.
Rep: I will forward that concern.

I have no reason to believe that she forwarded this concern.

[fullmetal]

I heard that the sticking point is that the current contracts with other cable companies include clauses that prevent the Pac-12 network from negotiating any "better" deals with other cable companies, which would include DirecTV despite various differences between said cable companies (DirecTV being an 800-lb gorilla in terms of market share).

That's a tough one.

[fullmetal]

I heard that the sticking point is that the current contracts with other cable companies include clauses that prevent the Pac-12 network from negotiating any "better" deals with other cable companies, which would include DirecTV despite various differences between said cable companies (DirecTV being an 800-lb gorilla in terms of market share).

That's a tough one.

[Prince_Lightfoot]

We don't even know for sure what the hangup is in negotiations. Is it price per subscriber? Or what tier of channels the Pac-12 Network is getting place on? Or which Pac-12 channels get picked up and which don't? (Remember, there are the six regionals plus the national.) Or some combination of all these things and others that we can't even guess at?

So, the oft-repeated line form Charter is: "Charter is interested in providing the PAC-12 Network to our customers, but only if the cost of the service to Charter and subsequently our customers is consistent with agreements PAC-12 Network has with other video providers of similar size as Charter. We are hopeful that our negotiations with PAC-12 Network will result in more reasonable terms and provide Charter customers with value."

I don't see how this is a reasonable benchmark, though.  According to the National Cable & Telecommunications Association, here are the subscriber numbers as if March 2012:

1 Comcast Corporation 22,294,000   [Deal in Place - not available everywhere]
2 DirecTV 19,966,000                           [Not Cable, no deal]
3 Dish Network Corporation 14,071,000 [Not Cable, no deal]
4 Time Warner Cable, Inc. 12,653,000   [Deal in Place]
5 Cox Communications, Inc. 4,756,000  [Deal in place - not available everywhere]
6 Verizon Communications, Inc. 4,353,000  [No Deal in Place]
7 Charter Communications, Inc. 4,341,000  [No Deal in Place]
8 AT&T, Inc. 3,991,000                           [No Deal in Place]
9 Cablevision Systems Corporation 3,257,000 [No Deal in Place]
10 Bright House Networks LLC1 2,079,000  [Deal in Place]


So, who is Charter using for "other providers of similar size?"  There's only one, and that's Cox, which has a  much different geographic footprint. 

[Prince_Lightfoot]

We don't even know for sure what the hangup is in negotiations. Is it price per subscriber? Or what tier of channels the Pac-12 Network is getting place on? Or which Pac-12 channels get picked up and which don't? (Remember, there are the six regionals plus the national.) Or some combination of all these things and others that we can't even guess at?

So, the oft-repeated line form Charter is: "Charter is interested in providing the PAC-12 Network to our customers, but only if the cost of the service to Charter and subsequently our customers is consistent with agreements PAC-12 Network has with other video providers of similar size as Charter. We are hopeful that our negotiations with PAC-12 Network will result in more reasonable terms and provide Charter customers with value."

I don't see how this is a reasonable benchmark, though.  According to the National Cable & Telecommunications Association, here are the subscriber numbers as if March 2012:

1 Comcast Corporation 22,294,000   [Deal in Place - not available everywhere]
2 DirecTV 19,966,000                           [Not Cable, no deal]
3 Dish Network Corporation 14,071,000 [Not Cable, no deal]
4 Time Warner Cable, Inc. 12,653,000   [Deal in Place]
5 Cox Communications, Inc. 4,756,000  [Deal in place - not available everywhere]
6 Verizon Communications, Inc. 4,353,000  [No Deal in Place]
7 Charter Communications, Inc. 4,341,000  [No Deal in Place]
8 AT&T, Inc. 3,991,000                           [No Deal in Place]
9 Cablevision Systems Corporation 3,257,000 [No Deal in Place]
10 Bright House Networks LLC1 2,079,000  [Deal in Place]


So, who is Charter using for "other providers of similar size?"  There's only one, and that's Cox, which has a  much different geographic footprint. 

[BobK]

Thanks for all the info Prince.    I can't answer any questions but like many received info from Stanford about leaving Direct if I have it and want the PAC 12 network.  I also received similar e-mails from Oregon and USC.  At the Council of Chiefs a Stanford rep urged us to switch from Direct.  The interesting part is no one has urged switching from AT&T or Dish. 

Obviously the PAC 12 existing deals prohibit under cutting there deals. 

[BobK]

Thanks for all the info Prince.    I can't answer any questions but like many received info from Stanford about leaving Direct if I have it and want the PAC 12 network.  I also received similar e-mails from Oregon and USC.  At the Council of Chiefs a Stanford rep urged us to switch from Direct.  The interesting part is no one has urged switching from AT&T or Dish. 

Obviously the PAC 12 existing deals prohibit under cutting there deals. 

[Farm93]

Surprise! The Dish Network, which usually lags well behind DirecTV on sports programming, seems to be close to a deal for the Pac-12 Network. At least, that's what the conference says.

http://pac-12.com/portals/0/content/ente...index.html

That would be an important development because DirecTV cannot miss an independent sports channel that is on DISH.  DirecTV's promotions seem to emphasize that best choice for sports stuff, so my guess is the conference can get DirecTV to move if Dish is in the fold.

For perspective though, the BigTen Network is 51% owned by Fox.  The BigTen network launched in 2008, but even with the power of Fox it took until 2008 for the BigTen to get the level of distribution they have today.  The Pac-12 Network is independent, partnered with cable provideres, and is only in the first month of broadcasting.  It will take time.  Major channels have been temporary kicked off the DirecTV lineup, it is all part of the game.

FWIW - I would be shocked if the Pac-12 is not kicked off DirecTV once this first contract expires.

It is a crazy game, but it is a negotiating game.  The five or ten year plan will probably be maximized if a few games here are lost on the front end.  I definitely believe that SC vs UCB will be on DirecTV for those willing to pay for the appropriate Choice level. 

Now, the Pac-12 negotiating plan probably falls apart if SC falls to Stanford before that SC v Cal game.  So while I want the Pac-12 Network to be on DirecTV, I sure would not be too disappointed if DirecTV discovers that one loss SC is not exactly must carry TV. 

[Farm93]

Surprise! The Dish Network, which usually lags well behind DirecTV on sports programming, seems to be close to a deal for the Pac-12 Network. At least, that's what the conference says.

http://pac-12.com/portals/0/content/ente...index.html

That would be an important development because DirecTV cannot miss an independent sports channel that is on DISH.  DirecTV's promotions seem to emphasize that best choice for sports stuff, so my guess is the conference can get DirecTV to move if Dish is in the fold.

For perspective though, the BigTen Network is 51% owned by Fox.  The BigTen network launched in 2008, but even with the power of Fox it took until 2008 for the BigTen to get the level of distribution they have today.  The Pac-12 Network is independent, partnered with cable provideres, and is only in the first month of broadcasting.  It will take time.  Major channels have been temporary kicked off the DirecTV lineup, it is all part of the game.

FWIW - I would be shocked if the Pac-12 is not kicked off DirecTV once this first contract expires.

It is a crazy game, but it is a negotiating game.  The five or ten year plan will probably be maximized if a few games here are lost on the front end.  I definitely believe that SC vs UCB will be on DirecTV for those willing to pay for the appropriate Choice level. 

Now, the Pac-12 negotiating plan probably falls apart if SC falls to Stanford before that SC v Cal game.  So while I want the Pac-12 Network to be on DirecTV, I sure would not be too disappointed if DirecTV discovers that one loss SC is not exactly must carry TV.