The Big 10 and Pac 12 chose a model that places their proprietary networks into large markets based on one simple premise. They get subscription fees out of everyone in the market whether the subscriber wants the channel or not. Add Maryland and you get every cable and satellite subscriber in the DC market paying a fee for the Big 10 Network whether they watch the channel or not. Larry Scott came from the WTA where he started the tennis channel. The channel made the tour a ton of money even though nary a soul watches it.

But the TV content delivery models are changing rapidly and the days of bundling 150 channels and making subscribers pay for all of them will not last. As the TV bundle dies, conference networks and other low demand channels will die with them. Live sports may be the only thing keeping it alive. But it's only a matter of time before the model breaks.

ESPN also has an interesting problem. For years ESPN was a growth driver for Disney. The last few years ESPN has been seen as a cash cow. Now with the increased cost of live sports content and on-air talent, combined with huge Disney wins on the big screen, ESPN is increasingly seen as a drag on growth. An article in the WSJ recently stated that ESPN stands to lose the most when the traditional channel bundle dies. ESPN is suing a cable company for offering a minimum channel bundle that does not include ESPN. Conceptually it seems like ESPN could go a la carte, charge a nice premium, and get a millions of subscribers. But I'm sure they've done the math and getting $6 from everyone beats getting $20 from sports enthusiasts willing to pay year round.