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Longhorn Network

  • Anyone know any of the contractual obligations of this failure? I think everyone has forgot about it...just curious how long ESPN will continue throwing money away before pulling the plug. Major TV providers have said there just isn't enough eyeballs to pay for such a niche network. That isn't going to change.

    TakeFlight

  • TakeFlight said...

    Anyone know any of the contractual obligations of this failure? I think everyone has forgot about it...just curious how long ESPN will continue throwing money away before pulling the plug. Major TV providers have said there just isn't enough eyeballs to pay for such a niche network. That isn't going to change.

    Why is it a failure. Just because it didn't get the converge in year 1?

    The Big 10 Network experienced the same "failure" in it's first year. Even worse "failure" actually.

    Takeflight- do you know what the advertising revenue was from the LHN? Compared to what ESPN had to pay for it? Do you really know what ESPN paid for it. Or does ESPN pay Texas based on a % of ad revenue earned?

    You may want to look into it.

    This post was edited by The X Factor898 on 5/7/2012 at 11:07 AM

    The X Factor898

  • There are no viewers and no major TV providers are any closer to picking it up than they were a year ago. They may have sold ice to some eskimos in year one to advertise, but that will dry up once they all figure out their ROI for their advertising spend, which will be negative. Either that, or they are forcing in advertising dollars by baking in the LHN with their other networks, in which case it might as well have been a network dedicated to bowling, which would probably have more viewers.

    TakeFlight

  • The "X" Factor said...

    Why is it a failure. Just because it didn't get the converge in year 1?

    The Big 10 Network experienced the same "failure" in it's first year. Even worse "failure" actually.

    Takeflight- do you know what the advertising revenue was from the LHN? Compared to what ESPN had to pay for it? Do you really know what ESPN paid for it. Or does ESPN pay Texas based on a % of ad revenue earned?

    You may want to look into it.

    Typical douchetastic response from X with absolutely zero substance.

    The LHN is an utter and complete failure thus far, and there is no disputing that. Advertising revenue is virtually nonexistent and the number of subs they have is a rounding error relative to the ESPN budget.

    Comparing it to the BTN is ridiculous because there was no enormous ESPN contract behind the BTN.

    RebelT

  • I think you can get online. It is not much of a Network at this point. Whatever Grande is other than a big burrito...I think they carry it too.

    DT_Bear

  • With the death of MTN, I think there will be an opportunity for it to get added to DirecTV.

    NOVA Bear

  • NOVA Bear said...

    With the death of MTN, I think there will be an opportunity for it to get added to DirecTV.

    That is how I see it working out. Too much in it to see it fail.

    @TruthOrBear247

    Brian Ethridge

  • RebelT said...

    Typical douchetastic response from X with absolutely zero substance.

    The LHN is an utter and complete failure thus far, and there is no disputing that. Advertising revenue is virtually nonexistent and the number of subs they have is a rounding error relative to the ESPN budget.

    Comparing it to the BTN is ridiculous because there was no enormous ESPN contract behind the BTN.

    Dude you have no idea whether it is a failure or not.

    I know the guys over at IMG who are selling this for UT.

    1. The LHN Network is a bigger success than the KU network, the OU network, the KSU network, the Baylor network, the Texas Tech network, the Aggy Network, the ISU network, the Mizzou Network.

    2. ESPN is not paying UT an unconditional lump sum of #### amount of dollars a year. The 3 entities ESPN, IMG College, and The University of Texas are splitting the ad revenues in a pre-agreed upon manner based on various thresholds. It's a mixture between a flat fee and percentage of ad revenue that neither of us are privy to.

    3. The Big 10 Network actually had worse coverage it's first year. Eventually the carriers picked it up. The same will happen with the LHN.

    4. Watch and see, Ty. There's no need to get all hot and bothered. We see way too many non-UT supporters rip the LHN as a total failure because it wasn't picked up by TWC, DirectTV, Uverse, Dish in it's first year. People don't know what they are talking about. This was not a 1 year partnership. This is something that will evolve and all parties involved realized this.

    The X Factor898

  • The difference in the Big 10 network and the LHN is 9 schools. Comparing the two doesnt make sense to me other than they are tv networks.

    As big as Texas is they arent that big.

    http://twitter.com/#!/bears_truth_com

    Colt Barber

  • The "X" Factor said...

    Dude you have no idea whether it is a failure or not.

    I know the guys over at IMG who are selling this for UT.

    1. The LHN Network is a bigger success than the KU network, the OU network, the KSU network, the Baylor network, the Texas Tech network, the Aggy Network, the ISU network, the Mizzou Network.

    2. ESPN is not paying UT an unconditional lump sum of #### amount of dollars a year. The 3 entities ESPN, IMG College, and The University of Texas are splitting the ad revenues in a pre-agreed upon manner based on various thresholds. It's a mixture between a flat fee and percentage of ad revenue that neither of us are privy to.

    3. The Big 10 Network actually had worse coverage it's first year. Eventually the carriers picked it up. The same will happen with the LHN.

    4. Watch and see, Ty. There's no need to get all hot and bothered. We see way too many non-UT supporters rip the LHN as a total failure because it wasn't picked up by TWC, DirectTV, Uverse, Dish in it's first year. People don't know what they are talking about. This was not a 1 year partnership. This is something that will evolve and all parties involved realized this.

    More nonsense.

    1.) You define success as mere existence? ESPN has dropped over $25M into the establishment,marketing, and operation of the LHN so far. You're telling me they've recouped that amount? Nonsense.

    2.) Correct. The bottom line is that ESPN is not even making enough money to cover the "flat fee" owed to ESPN/IMG. They're in the red. By a lot.

    3.) You're again comparing apples to tennis shoes. The BTN did not have millions of dollars of ESPN money behind it. I'm not sure why this is hard to comprehend.

    4.) Sadly, you fail at the most rudimentary of subjects: reading and comprehension. I did not say it will fail or is destined to fail or any other such prognostication about the future. I said, specifically, "The LHN is an utter and complete failure thus far". There is zero denying that. There is absolutely a chance that it WILL succeed, but trying to say it's not a complete failure and an enormous loser in its first year is just wrong.

    RebelT

  • Can I redirect this thread in a different yet related path?

    What are the odds that Baylor packages the Tier 3 rights with someone else into one network? I like what BYU has done with their network, but I don't think Baylor has adequate backing from a single religious institution to do the same level. However, if some private schools got together would it be feasible and/or desirable?

    bearliving

  • So what are the reasons for it's failure?

    You have no idea on the advertising side of it.

    How many sponsorship packages did IMG sell/renew/find new corporate sponsors because they threw in some LHN inventory with the radio spots, the in-stadium signage, the internet impressions? They package a lot of this LHN inventory with other elements to create larger packages. And they increase investment levels by adding some LHN inventory.

    Colt-I assume most people think it fails because it wasn't carried by many cable providers. If that is your measure of success, then you'd have to say the Big 10 network failed, since it too wasn't carried by many providers. That is the comparison.

    Finally, we have no idea the metrics that ESPN, IMG or UT had established in year 1 to measure success. It may have been to generate $1 million in ad sells, get into 100,000 homes, broadcast X number of Big 12 events. All of which they could have accomplished.

    Bottom line, Ty, you like most people have no idea what you're talking about. It just makes you feel good to bash the LHN. Just trying to help you out.

    The X Factor898

  • I wonder about how successful it can even be. Yes, Longhorn fans will tune in for games and some shows. However, right now they are WAY short on content. LOTS of replays of games and shows sometimes back to back. Then they try to shove in some stuff about Texas arts and other things going on in research. Again, Longhorns will watch that to a degree, but not religiously. There are better things on TV even for the most diehard fans.

    Plus, where are they hoping this gets picked up? If it's just in Texas, they're preaching to the choir trying to sell a brand to a demographic that is saturated with it and has already jumped aboard or said no thank you. Are there enough Longhorns throughout the country to warrant it being picked up by providers nationwide?

    I think it will move along. It will be moderately successful in that ESPN won't lose money, but they also won't see much of a profit. But, the horns got ESPN's cash so they're content with that, however I think they have to wonder if this is really going to be the best vehicle for branding. If the Big 12 puts together a network, that could potentially put participating universities into more markets and get teams in front of many more new eyeballs than the LHN will for ut.

    I don't think they'll pull the plug on it. I think it will adapt and, as stated, just be on DirectTV and it doesn't turn into a loss. However, I question the branding potential and power of this idea. Maybe it can work, but it's a shaky concept. If the horns really wanted branding exposure, they would have been wiser to fully get behind a Big 12 Network. They wouldn't have made as much (are they really hurting for cash?), but they would have been able to better brand themselves outside of Texas. Right now the LHN is branding ut inside Texas. That doesn't have much value for ut.

    This post was edited by bugramps on 5/7/2012 at 1:18 PM

    Pro Ecclesia, Pro Mundus

    bugramps

  • Whether its a success or failure depends on who you ask. Its a win/win for UT. Just the advertising they get on the main ESPN channel alone is worth any negative and thats before getting into the $$ they are and will be pulling in.

    Oddly, the current big loser in the deal are UT fans. I am shocked at the number of UT fans who are irritated because during basketball season a ton of UT games were placed on a channel that their own alumni cant get. There are alot of UT alums out there, but still not enough to pressure various cable companies into having to have it.

    I have the channel and they are going to have to find more material worth programming, because even if this channel was 100% all Baylor, their just isnt enough content to keep me tuned in.

    In general it will be another 4 years before anyone knows if this is a success or failure.

    Bears131

  • Sounds like I am one of the few who actually watch LHN. They frequently have baseball or softball games on to watch. The interesting programs are far and few in between though unless you are a UT fan, which I am not. I even root for OU when they play each other. (OK roots)

    That said, I must admit that I had no idea how it would work for them, or why it was such a fuss before they came on. But I see now how its a real feather in their cap to have it on. To have your school being promoted 24/7 is HUGE. My son seeing kids he played ball with on TV had an impact. And I am sure there are tons of other youngsters out there that are drawn to it too.

    I now feel sure that station is the devil. But I do appreciate them showing our Baylor teams beating the dog crap of the UT teams on there. I must have watched the UT v Baylor football game 3 or 4 times last fall. Way to reverse the whip Bears!

    deemus

  • bearliving said...

    Can I redirect this thread in a different yet related path?

    What are the odds that Baylor packages the Tier 3 rights with someone else into one network? I like what BYU has done with their network, but I don't think Baylor has adequate backing from a single religious institution to do the same level. However, if some private schools got together would it be feasible and/or desirable?

    You have to find a company that is willing to produce the material. Then a company that is willing to distribute the material.

    With UT - ESPN actually invested in both the production and the distribution.
    1. Production: buy the HD cameras, the editing equipment, the production trucks, building a studio, hiring talent, etc.
    2. Distribution: creating and registering for a new channel.

    With OU:
    1. Production: OU invested million upon millions in the production equipment. They built studios. Have wired their facilities for state of the art production capabilities etc.
    2. Distribution: They have partnered with FSN to distribute this content. They won't have their own channel. But they have a pre-establised medium to get their content out to the masses.

    For schools like Baylor:
    1. Production: We have a lot of the capabilities since we already produce "Inside Baylor Sports." But would need to further invest. Most of the other schools would have to do something similar.
    2. Distribution: This is really the toughest part. Who is going to want to either invest in creating a new channel for us/Big 12 OR clear enough air time on an existing channel.

    The X Factor898

  • RebelT said...

    Typical douchetastic response from X with absolutely zero substance.

    The LHN is an utter and complete failure thus far, and there is no disputing that. Advertising revenue is virtually nonexistent and the number of subs they have is a rounding error relative to the ESPN budget.

    Comparing it to the BTN is ridiculous because there was no enormous ESPN contract behind the BTN.

    The reason they don't have distribution is because ESPN is holding to a price per subscriber, so if ESPN is unhappy, it only has itself to blame.

    “Kansas may wind up number one in these polls, but that would be so unfair to Texas...” -- Len Elmore, 2/13/11

    Bob in Houston

  • The "X" Factor said...

    So what are the reasons for it's failure?

    You have no idea on the advertising side of it.

    How many sponsorship packages did IMG sell/renew/find new corporate sponsors because they threw in some LHN inventory with the radio spots, the in-stadium signage, the internet impressions? They package a lot of this LHN inventory with other elements to create larger packages. And they increase investment levels by adding some LHN inventory.

    Colt-I assume most people think it fails because it wasn't carried by many cable providers. If that is your measure of success, then you'd have to say the Big 10 network failed, since it too wasn't carried by many providers. That is the comparison.

    Finally, we have no idea the metrics that ESPN, IMG or UT had established in year 1 to measure success. It may have been to generate $1 million in ad sells, get into 100,000 homes, broadcast X number of Big 12 events. All of which they could have accomplished.

    Bottom line, Ty, you like most people have no idea what you're talking about. It just makes you feel good to bash the LHN. Just trying to help you out.

    Soooo....riddle me this Batman: Do you (or your buddies in IMG) define the LHN a success based on its first year? We all understand it a is a work in progress, but it either is, or is not a success so far.

    Oh, and I could care less about the BTN. It is the LHN that threatened to tear apart the Big 12.

    Bexar Fan

  • Bexar Fan said...

    Soooo....riddle me this Batman: Do you (or your buddies in IMG) define the LHN a success based on its first year? We all understand it a is a work in progress, but it either is, or is not a success so far.

    Oh, and I could care less about the BTN. It is the LHN that threatened to tear apart the Big 12.

    I don't work for IMG. And I don't pretend to know how they were able to sell it in year 1.

    I used to work for IMG's competitor and have a very good knowledge of the industry. And since I started my own ad agency, I have negotiated a few deals on behalf of clients with the fellows at Longhorn IMG Sports Marketing. In one deal early last summer, they used the inventory on the LHN as a "bonus" to get us to sign a deal.

    So I really don't know if it was successful or not.

    Personally, I would love to see it fail. I'm just saying there are quite a few factors that go into determining its success. Assuming they are going to be able to get the households they are in UP, then they'll be able to sell it just based on the efficiency of the media buy alone.

    The X Factor898