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What helps SEC Network is high demand for the product, and one of the more expensive subscriber fees out of sports television networks. Ryan Smith, vice president of content for AT&T's U-Verse, told AL.com in 2015 that subscriber intensity for SEC sports was "off the charts for what we normally see for sports."
The SEC Network's average monthly subscriber fee is $0.74, according to SNL Kagan's most recent data, a good chunk more than the Big Ten ($0.43) and Pac-12 ($0.27). That average monthly subscriber fee, which takes into account in-market and out-of-market prices, makes the SEC Network the fifth-most expensive sports network for consumers behind ESPN ($7.21), NFL Network ($1.39), FS1 ($1.15) and ESPN2 ($0.90).
Based on subscriber number and fee estimates, the SEC Network is generating approximately $545 million off subscriber fees alone -- more than NBC Sports, MLB Network and NBA TV. That doesn't take into account the revenue generated through SEC Network's placement on over-the-top platforms Sling TV, DirecTV Now and the recently launched Hulu Live TV. SEC Network recently announced it would soon be available in Mexico which should boost revenue albeit potentially minimally.
"SEC Network is strongly positioned because of interest in the content and the significant audience, partly because of the approach they've taken with the business model having ESPN fully invested in getting it distributed," said Dan Shevlick, vice president of Sports Media Advisors.
The success of the SEC Network is rarely considered when discussing ESPN's current issues, but by all accounts, it's been an unabashed success for all involved. It is wholly owned by ESPN -- it keeps more than 50 percent of the profits in its deal with the SEC -- and represents a significant profit center even after losing subscribers since 2015. As time passes, the operational costs will become more fixed and the startup expenses further in the rearview mirror, helping the profit margin.
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"The SEC has that inherent advantage that if Alabama or Auburn is playing the Little Sisters of the Poor, people are still going to watch in huge numbers," Jeff Nelson, vice president of client strategy at Navigate Research, previously told AL.com.
What will be interesting is whether the SEC Network can improve upon its $1.30 in-market subscription fee in future carriage negotiations with cable providers. If it can do that -- and it is believed to be well within the realm of possibilities -- that could further push the SEC Network ahead of its conference TV competition.
