Information has been hard to come by if the newly launched ESPN DTC would have any effect on the ACC Network and subsequently the ACC schools’ Media Payouts.
Well, I asked ChatGPT a few questions, and the responses were interesting. Obviously, take them with a grain of salt, but just remember, ESPN is launching this with the expectation of making money.
Here are some answers ChatGPT gave when I asked if ESPN DTC would help ACC Media Revenues.
Summary:
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ESPN DTC could raise ACC revenues $40M–90M/year within the next few years.
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For top ACC programs, that’s roughly $5M–15M more per year.
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For lower-viewed schools, the benefit may be closer to $1–3M.
Bottom Line:ESPN DTC is expected to raise ACCN revenues because it broadens the audience, improves monetization via ads & engagement, and aligns with the ACC’s new viewership-driven payout model.
The real winners will be the most-watched ACC schools, who stand to gain the most from expanded visibility.
Oddly enough, many projections of ACC Revenue growth showed static growth for the next 4-5 years. That clearly means the effect of the ESPN DTC was neither positively or negatively added in. There is a non-zero risk if cable subscribers drop faster than ESPN DTC adds them, then ACC Network revenues could drop as well, but completely static growth seems unlikely.
ESPN DTC is a bundled package with ESPN’s pride and joy, the SEC, and there will be options that include Fox One, and additional NFL content. This is being rolled out as a money-making venture.
A bundled ESPN and Fox offering, set for release on Oct. 2, will run $39.99 per month. A separate bundle of ESPN and NFL+, which includes NFL RedZone, will be made available on Sept. 3 for $39.99 per month.
ACC Revenues won’t make SEC Big 10 type money, but another bump looks more likely than not.