Op-Ed: Pac-12's Apple TV streaming deal is bad for business
The Pac-12 is on the clock. As of Tuesday, the conference passed along a stripped-down media rights deal with Apple TV and primarily focuses on streaming. The last ditch effort to stop the bleeding by commissioner George Kliavkoff is shameful.
It's not a proposal focused on growth and doesn't give a linear approach, which hurts exposure efforts to the schools willing to stick around. In theory, the deal is forward-thinking with some digital advancements. However, it's not solely guaranteed money with "incentivized tiers," almost like the OnlyFans of college athletics deals. It would be worth a lot if certain subscription numbers are met. Let's face it, the pay-per-view plan is ludacris, to say the least.
"There's an underlying shift in the media market that's happening, and we're long term taking advantage of that,"Kliavkoff said at Pac-12 Media Day.
This is a league that still refuses any type of deal with DirecTV. Now, that started on Larry Scott's watch, but it has continued under Kliavkoff. An organization that complains about money troubles and yet can't come ahead year-after-year should look around the room and ask the tough questions. Maybe "after dark" kickoffs are detrimental to exposure in the brand's biggest money maker. That's a start, at least.
Also, Kliavkoff didn't exactly exude confidence at Pac-12 Media day. He was more like a deer staring down an 18-wheeler. The main ballroom felt emotionless with a lot of doubt swirling around.
ESPN's Pete Thamel said schools are considering their options when it comes to any deal with Apple TV as the streaming storefront for the conference. He noted that "Campus leaders are digesting the possibilities of a stream-centric future and the variance in potential income. The money piece is tricky because of the variables of subscriptions." According to sources, the first year of the contract with Apple would start in 2024-25. A spokesperson from Apple refused to comment on the ongoing negotiations.
The leadership teams of the Pac-12 schools have a lot to consider. Apple TV's growth has been stagnant over the past six months. Will bringing the Pac-12 aboard drive new subscribers? If so, is it enough to really drive a wave of new revenue in a trickle-down to the Pac-12 schools? In short, it's possible, but not likely. Especially without the Los Angeles market in play starting next year.
That's the next question to this big puzzled mess. Will the Pac-12 really have a big enough market to draw in a paid subscription service? Seattle and Phoenix are huge contributors, but they're still outside the top ten. The same goes for the smattering of true Oregon fans around the nation. As it stands now, there's not enough pull for the Pac-12 to make this truly profitable.
Apple currently handles an exclusive rights deal with Major League Soccer, but doesn't produce any games. The global tech giant strictly acts as a syndication outlet, which likely passes the buck for production costs to the Pac-12.
It's nothing short of an 11th-hour deal scraped together by Kliavkoff to say the conference tried to make something happen. Also, it's part of the reason why Colorado and others aren't sticking around to see what happens.
Kliavkoff is a smart and likable guy for the most part. He was instrumental in making long-standing deals in the entertainment world prior to taking over at the Pac-12. However, the delay in getting a media rights deal together time and time again over the past year could be fatal to his tenure.
Colorado will make $31.7 million as a member of the Big 12 starting in 2024.