The Mountain West Conference is taking a bold step towards rewarding its schools based on their ability to drive subscriptions for a new streaming service, MW+. This innovative approach, a first in college sports, reflects a changing landscape where conferences are seeking sustainable revenue models.
The MW+ Model
MW+, powered by Kiswe, aims to provide live coverage of Mountain West events not broadcasted by traditional partners. The key differentiator is its revenue-sharing model, where a majority of each subscription purchased through a school's dedicated page directly supports that institution. This model ensures a scalable and sustainable revenue stream aligned with fan engagement.
A Sign of the Times
The Mountain West's move is timely, as the conference faces a reshuffling with its biggest draws departing for the Pac-12. This leaves a smaller group of schools, each with varying fan bases, and the conference believes in financially rewarding those that generate the most interest.
Unequal Revenue Sharing
This concept of unequal revenue sharing is gaining traction in college sports. The ACC, for instance, rewards schools based on factors like on-field performance and television ratings. This model incentivizes schools to focus on improving their on-field performance and attracting more television viewers, which leads to a larger share of conference revenue.
A Powerful New Revenue Stream
Mountain West Commissioner Gloria Nevarez highlights the dual benefit of MW+: "Not only are we expanding how fans connect with our schools and student-athletes, but we’re also creating a powerful new revenue stream that directly benefits our member institutions."
While MW+ will likely contribute only a small portion to a school's overall media revenue, it is a significant step towards incentivizing schools to invest in building their fan base. With the college sports landscape becoming increasingly competitive, initiatives like MW+ could play a crucial role in a school's financial strategy.
A Broader Trend
The Mountain West's move is part of a broader trend in college sports, where conferences are exploring innovative ways to generate revenue and engage fans. As the industry evolves, we can expect more creative models to emerge, challenging traditional revenue-sharing structures.
Conclusion
The launch of MW+ is a fascinating development, showcasing the Mountain West's forward-thinking approach to revenue generation. It will be interesting to see how this model evolves and whether it sets a precedent for other conferences to follow.
