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Jul
11
2017

How much would you pay monthly for a single a la carte ACC Network cable or digital channel?

I decided to run a twitter poll asking how much would you pay monthly for single a la carte ACC Network cable or digit channel?

With the carriage rate of the of the ACC Network projected to be somewhere between .30 – .60, would it be more profitable to offer it as an a la carte channel?

We will the say the ACC Network can pull .45 a subscriber fee and 50 Million subscribers. The SEC Network has nearly 70 Million subscribers, so that is a fair estimate.

That’s $270 Million the ACC Network can generate in a year. Judging from my poll that had had over 300 voters, the average price an ACC fan would pay monthly for the ACC is $5.27.

We’ll even round down to $5. That’s 4.5 Million subscribers required to match the bundled Version. It’s hard to say if a ACC Network would pull that many subscribers even in the cord cutting era. For example the WWE network has 1.6 Million subscribers.  

I tend to think even in a cord cutting era, that the ACC Network won’t get that many subscribers. Cable companies don’t seem ready to have completely a la carte offerings either.

That said even if the ACC Network can generate 250,000 digital subscribers at $5, that another $15 Million that can be added to the $270 Million. As cord cutters increase, you can offset some the losses with a $5 channel. If the cable companies ever offer a la carte, they can charge $5 a month there too.

Definitely the ACC should continue with the linear bundled cable channel. They will do this too. That’s still the most profitable method to distribute a channel, but I do think in the cord cutting era a digital offering at $5 which seems to be the correct price point should be offered as well.

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