Seriously, these PACapologists are clueless. They believe 1.) Apple will over Pay (more than linear partners) for Tier 2 content that currently goes on the PACN; 2.) Apple will pay the PAC to produce it; and 3.) the PAC will get a huge cut of the sublicense fee. Total delusion and guess which fanbase pushes it the most? Yewtah.

Never once do they stop to think what the value proposition is to Apple. When a game is sublicensed onto a linear platform it effectively becomes free to the viewing public. If all the good games are sublicensed then what incentive is there to buy a subscription, season pass, or individual games? Further, the prime viewing slots are filled and the late night windows can only command so much ad buy revenue. ESPN and Fox are not taking a profit margin hit for the PAC’s ego. They would only sublicense a top 10 game for a primetime slot, which is max 1 or 2 games a year. Everything else is pennies on the dollar. The licensee will keep all the ad revenue to make its profit. Since the value of the game becomes impaired for Apple, it ends up sublicensing content for less than what it paid for it. In what business world does this make sense?

The biggest fan bases and brands will be on linear while the worst brands and smallest fanbases will be on Apple TV. Again, Apple won’t get subscribers from that and won’t make money off garbage games of mostly regional fanbases. On top of that it would be cannibalizing its own product by sublicensing its best product for pennies on the dollar because linear partners won’t pay more than what they could directly.

With all this brilliant business sense on display by PACapologists, it is little wonder why their schools can’t make a profit on the network and are running huge deficits with heavy debt. As Dirty Harry said, “A man’s got to know his limitations.”