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Q&A About Mediacom’s Negotiations with the Big Ten Network |
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What is Mediacom’s position with respect to the Big Ten Network?
Why doesn’t BTN accept Mediacom’s offer for carriage on expanded basic?
What is the difference between BTN’s position and the variety of carriage proposals put forward by Mediacom?
How much would BTN cost consumers?
Where will Big Ten football and basketball be shown besides BTN?
Why doesn’t Mediacom just pay BTN’s exorbitant demands?
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What is Mediacom’s position with respect to the Big Ten Network?
We have always said, and continue to say, that we want to offer the Big Ten Network (BTN) on Mediacom cable
systems. We know that some of our customers want this programming, which is why we have put forward a
variety of proposals to carry BTN. Not only have we offered to add BTN on digital basic, our digital
sports tier or on a digital a la carte basis at a price set by BTN, but we have also offered to add BTN
to our expanded basic lineup.
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Why doesn’t BTN accept Mediacom’s offer for carriage on expanded basic?
Based on the public statements being made by the network representatives and member schools, it is unclear
why BTN has not accepted Mediacom’s offer to launch BTN on expanded basic. BTN management has repeatedly
stated that the only thing that is not negotiable with cable operators is expanded basic carriage within
the core Big Ten market. The Athletic Director for the University of Iowa has publicly stated that the #1
priority of the University has always been to make BTN available to as many fans as possible.
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What is the difference between BTN’s position and the variety of carriage proposals put forward by Mediacom?
The difference between these positions comes down to how much expanded basic cable customers within the
core Big Ten market are being asked to pay for this programming. If BTN had its way, EVERY Mediacom
Family Cable customer living in the 8 Big Ten states would see a significant rate increase as a result
of adding this new channel.
From our perspective, we know that many of our customers do not follow college sports; and within the
areas we serve, fan loyalty is split among many different schools and conferences. The proposals that
we have made to BTN, including our offer to carry BTN on expanded basic, attempt to limit the impact
that adding BTN to our channel lineup will have on cable rates.
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How much would BTN cost consumers?
At the price BTN is demanding within the 8 Big Ten states, this channel would be MORE EXPENSIVE than
95% of the channels on Family Cable. That equates to a premium price, and would dramatically increase
basic cable rates. BTN’s position is that we add the channel in a place where these extremely high
programming costs would be assessed to substantially all of our customers – not only during the sports
seasons, but 12 months a year.
In the Big Ten states, there are approximately 18 million cable subscribers – so we are talking about
hundreds of millions of dollars going from consumers’ pockets to BTN every year.
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Where will Big Ten football and basketball be shown besides BTN?
The Big Ten Conference has sold to ESPN / ABC the broadcast rights for all of the top-choice games in
football. This billion-dollar deal with ESPN / ABC is for 10 years. It means that for the next decade,
the public will see the majority of the Big Ten football games on ABC, ESPN, ESPN2 and ESPNU. Additional
Big Ten football games will be available on Versus, NBC, ESPN360.com and other networks. All of these
channels are currently available to Mediacom customers.
Likewise, the Big Ten Conference has sold to ESPN and CBS the broadcast rights for its top-choice men’s
and women’s basketball games. In addition to the dozens of Big Ten games available on ESPN, ESPN2, ESPNU
and ESPN360.com, ESPN will feature two Big Ten teams each week as part of its Super Tuesday lineup. The
Saturday college basketball lineup on CBS will feature the best in Big Ten men’s and women’s competition
this season. Additional Big Ten basketball games will be available on CSTV and the FOX Regional Sports
Networks that are already part of the Mediacom channel lineup.
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Why doesn’t Mediacom just pay BTN’s exorbitant demands?
Polls conducted by the Cedar Rapids Gazette and WHO TV and a survey of our own customers conducted by
Vernon Research Group show that BTN is a niche network with limited appeal. The research supports that
the vast majority of Mediacom customers do not want to pay the price that BTN is demanding for this channel.
In addition, the BTN “core market” includes the entire states of Illinois, Indiana, Iowa, Michigan, Minnesota,
Ohio, Pennsylvania and Wisconsin. However, the Cyclone faithful dominate the marketplace in Ames, IA. In
South Bend, IN, the Fighting Irish of Notre Dame are the clear favorite. In Cincinnati, OH, fan loyalties
are split between two cross town rivals, the Cincinnati Bearcats and the Xavier Musketeers. With teams
like the Pitt Panthers, St. Joe Hawks, Temple Owls and Villanova Wildcats, Pennsylvania is flooded with
teams that have loyal followings. Despite the fact that BTN demands it, Mediacom cannot simply ignore the
fact that there are other fans of other conferences living within the 8 state “core market” that BTN has
arbitrarily established.
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