[NU Sports] Pac 10 to invite 6 Big XII schools to join?

[pcw at warnerpatents.com]

Some comments have suggested that adding Nebraska would cause a
significant number of persons outside The Big Ten footprint to subscribe
to BTN.  Financially, it would be insignificant compared to adding,
e.g., Rutgers, even if Rutgers would cause no one outside the footprint
to subscribe.
 
Nebraska pop: 1,796,619
New Jersey pop: 8,707,739

Using the US Census data that I provided in an earlier email and SNL
Kagan (leading cable and satellite industry analyst) subscriber revenue
data, there are 2.38 persons per household, 81.4% cable/satellite market
penetration, $0.88/subscriber/month paid to BTN for footprint state
subscriber and $0.05 non-footprint state subscriber.

Nebraska:    (1,796,619 / 2.38) x 81.4% x $0.88 x 12 mos. = $  6,488,844
/ year
New Jersey:  (8,707,739 / 2.38) x 81.4% x $0.88 x 12 mos. = $ 31,449,719
/ year
                                              Difference  = $ 24,960,875
/ year

To make up the difference, Nebraska would need to bring in 41,601,458
additional subscribers outside of The Big Ten footprint states. 
($24,960,875 / ($0.05 x 12 mos.) = 41,601,458 subscribers)  I don't
think Nebraska is that popular.  New York, with its population of
19,541,453, would be a differential that is impossible for Nebraska to
overcome.

As to the comment that New York City and New Jersey will never be
popular college markets, that is fairly irrelevant.  The number of
subscribers is what's important.  Outside the footprint states, the BTN
is part of  higher-tier purchase packages.  (Here in Arizona, it gets
packaged with a bunch of other sports channels for $6/mo.)  In the
footprint states, it is part of the basic cable/satellite package or
bundled with a low-level already-popular sports package.  The BTN would
end-up in a similar basic or low-level bundled package in NY or NJ -
Albany (for Syracuse) and Trenton (for Rutgers) will see to that (more
money for their state universities).