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WISC-TV Examines Financial Viability Of Big Ten Network

Local Cable Companies Don't Carry Network

UPDATED: 8:36 am CST December 21, 2007

Some have questioned how the Big Ten Network is able to pay millions of dollars to all of the universities without support from major cable companies.

TALKBACK: What Do You Think?

In exchange for TV rights, the Big Ten Network pays universities, like the University of Wisconsin-Madison, big bucks to air the games. But with no revenue from some of the major cable companies, like Charter and Time Warner, some are wondering how the Big Ten Network is able to even pay those fees, WISC-TV reported.

Ever since the Big Ten Network first went on the air 113 days ago, network President Mark Silverman has been answering a lot of questions. Most of those questions have been about cable company negotiations.

But WISC-TV looked into how the network will pay rights fees -- tens of millions of dollars a year -- to its 11 partner schools.

"You know, it's really a Fox corporate question -- and Fox is obviously a multibillion-dollar company," Silverman said. "From all my conversations with them, they are incredibly supportive and confident in the success of this network."

  SURVEY
Should the state get involved in the dispute between cable providers and the NFL and Big Ten networks?

Under the UW-Madison and Big Ten Network agreement, the network has agreed to pay the university roughly $6.1 millions annually for 20 years. That's about $122 million to UW-Madison, and it doesn't include payments to other Big Ten schools.

Cable expert Barry Orton said it's not a question of whether or not the university will get its money -- he said it absolutely will, as will the other 10 schools.

"Don't forget that that this is started by Fox. Fox has very, very deep pockets," Orton said.

But Orton said the question now is whether or not the relationship between the network and UW-Madison will be sound. He called the network a questionable bet and said it has been upsetting a lot of Badger fans.

"The UW has a contract to get a stream of money -- that's a smart move on the UW's part," Orton said. "But as to whether that's going to pay off or not, I don't know. So far, it hasn't looked like a great bet."

The Big Ten Network said that despite the troubles, it has had with cable negotiations in the Midwest, it's a different picture nationwide. The network said it expected a reach of about 20 million to 25 million households at this point. Its reach right now is 31 million households, WISC-TV reported.




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