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The complicated case of the Pac-12 Networks

SD Buff

Folsom Field King
Gold Member
Jan 14, 2002
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San Diego
Long and informative read into the PAC 12 Networks. Interesting what the sticking point was with DirecTV. We had assumed it was carriage price, but it wasn't. LINK



The two sides largely agreed on price and tier level, adding to the optimism conference officials felt. DirecTV, with close to 6 million subscribers in the Pac-12 footprint, conference sources said, would have brought a significant distribution boost to the channels.

But two deal points — not associated with the networks — proved too difficult to overcome and negotiations ended in September without a deal.

AT&T wanted a commitment that would allow it to wire every campus in the Pac-12 with its own video service, sources said. It was a way for AT&T to leverage DirecTV carriage.

The plan was similar to AT&T’s 2013 carriage deal between Pac-12 Networks and U-verse, which included a commitment to upgrade all of the Pac-12’s football stadiums and basketball arenas with wireless systems. As part of that 2013 arrangement, AT&T became the conference’s official wireless provider.

AT&T also asked for expanded rights around its wireless sponsorship as part of any DirecTV deal this year, sources said. It’s unclear what rights AT&T specifically wanted.

This time, AT&T’s request for additional campus rights proved to be a deal breaker for the Pac-12.

Scott went to the conference’s 12 university presidents with DirecTV’s proposal. They rejected it unanimously, in part because many of the state schools simply couldn’t surrender those rights without a formal bid process.
 
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