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The history of the PAC-12 Networks and Direct TV

Skullduggery

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Feb 1, 2006
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If you're fascinated with the business side of the PAC-12 Networks, you will love the background information that Jon Wilner provides in this article. It covers the beginning of the network and why the PTN and DTV never could reach an agreement.

One statement I found particularly telling.
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At that point, one week into the season, DirecTV assessed the response of its customers: How many would cancel, or threaten to cancel, if the satellite provider did not carry the Pac-12 Networks?

The company would have to be pushed to the tipping point, where it would lose enough in subscriber fees to make a deal with the Pac-12 Networks — something in the neighborhood of $40 million – $50 million annually — worthwhile.

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Doing the math, if the cheapest DTV plan was around $50 a month, or $600 annually, then only 75,000 DTV customers would have had to "cancel or threaten to cancel" to push DTV into a contract. So DTV customers have nobody to blame but themselves and their lazy wait-and-see attitude.
 
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