Big Ten or Big Bully?
College football season is important for people throughout Ohio. It is especially important for the football powerhouse of Ohio State University and its fans. It is problematic, then, that this taxpayer-subsidized university is trying to use its clout to extract millions of dollars from cable consumers in the state. OSU’s action in trying to force cable companies to carry the Big Ten Network should trouble all cable consumers (as well as taxpayers) across the state.
College athletics are big business for universities, especially Ohio State. With a large base of rabid Buckeye fans, OSU sees millions of dollars in profits from its athletic programs. In order to increase those profits, it has now joined with other Big Ten schools to form the Big Ten Network, which will broadcast a variety of OSU athletic events.
Unfortunately, OSU is trying to force cable systems to carry the Big Ten Network on the systems’ basic tier of service. And for the privilege of carrying this network, the Big Ten Network is demanding a $1.10 fee per subscriber per month from cable systems – making it one of the most expensive channels for systems to carry.
It makes sense that Ohio cable systems would carry the Big Ten Network. OSU sports are important for many people throughout the state. But should this channel be added to the basic tier of service, where all customers would be forced to absorb the high cost of carrying it? Why should all cable customers subsidize the viewing desires of OSU sports fans?
There is nothing wrong with a new network trying to gain viewers. In the past decade we have witnessed a proliferation of specialty networks that are vying for cable consumers’ attention. What is troubling about the Big Ten Network’s situation is the involvement of schools supported by tax dollars engaged in hardball negotiating with cable systems.
Although OSU has many sources of revenue, it is first and foremost a public university. The taxpayers of Ohio are ultimately responsible for funding and maintaining OSU. It is always troubling when taxpayer-supported behemoths such as OSU take a heavy hand with private businesses.
The prudent thing to do would be for OSU and cable systems to take a little time to see how the Big Ten Network develops. Right now all of the high-profile OSU games will be on other networks. Channels like ABC, CBS, and ESPN have the right of first refusal for all OSU games right now. It may take years for the Big Ten Network to feature the premium games that attract the most customers.
More importantly, Governor Ted Strickland recently signed legislation to open up the video market to competition. That means in a few years Ohioans will have more choices for their video choices. And that is really the key to this problem – competition. If certain cable systems do not want to carry the Big Ten Network, Ohio taxpayers should not be subsidizing a push by OSU to force them to do so. With choice in video services, Ohio sports fans will be able to decide for themselves the fate of the Big Ten Network. Some cable systems may choose to carry it on their basic tier of service. A few, such as Insight Communications and Wild Open West, already do. Others may not choose to go this route. Consumers can then decide which they prefer.
In the end, consumer choice will resolve this debate. If the Big Ten Network offers a service that is desired by Ohio consumers, cable systems will respond. OSU should refrain from throwing its taxpayer-supported weight around in this debate. College sports are important to millions of people throughout Ohio.
They should not be used as a political football in this debate.
Marc Kilmer is a policy analyst with the Buckeye Institute for Public Policy Solutions, a research and educational institute located in Columbus, Ohio.
