What I was trying to say is that overall more people want to watch good teams (Florida, Alabama, etc) play than want to watch not so good teams (Rutgers, etc) play. And as time passes we're moving more and more to people being able to pay for what they want to watch instead of being forced to pay for something just because of where they live.
What if all the conferences eventually have to go to a pay-per-view model for their conference TV network? Then people are going to pay for what they want, not what is foisted upon them. A lot of people live in New Jersey but it's not overflowing with college football fans and lots of the college football fans there are want to see the good teams play even if said teams are far away.
The old Big East football conference used to have Rutgers (New Jersey), Boston College (New England), Temple (Philly), Miami (South Florida) and Syracuse (New York). They should have been killing with those big markets, right? But no, because nobody wants to watch a lot of those teams play. Alabama-Auburn probably gets bigger ratings than BC-Syracuse even in New York and New England, not to mention the rest of the country.
ETA: The cable companies making money however they can is one thing, the sports conferences doing it is another. The cable companies are going to look out for themselves, not for the sports conferences. If a cable company can make more money by pushing SEC football in New England, or whatever, they're going to do it.
That's one of the reasons why the Big Ten wants to go with State Flagship Universities. They want to have the entire State involved. Not just a region. Syracuse, Temple, Miami, and Boston College are not State Flagship Universities.
Believe it or not, if the Bills would have been bought by an out of town owner and moved to Los Angeles, The University of Buffalo would have been a more attractive long term addition to the Big Ten than Syracuse. They had already started the rebranding process to "The University of New York" anticipating that possibility. But that's a subject for another thread.
It seems that you are comingling Cable and First Tier Rights. Cable and First Tier Rights are two different subjects. Not sure what your point is. But I can assure you that having a team located in the Number 1 DMA in the Country is an enormous Plus. Let's use Rutgers and ONLY the New York City DMA as an example.
The Big Ten doesn't just shop Rutgers to potential networks and advertisers. They shop the New York City DMA. The Number 1 DMA in the United States of America. The Big Ten (Rutgers) would get preferential treatment, everything else being equal, just by being located in that DMA.
Without a team located in the New York City DMA, our negotiating power in relation to advertising and first tier negotiations, and our potential third tier media subscribers, is reduced drastically.
As just one extreme and unrealistic example of the Big Ten's new found advantage (to illustrate the point) - if, as you say, Alabama was playing Auburn, and Rutgers was playing Slippery Rock, and both were CBS regional games being played at the same time, Rutgers would be shown throughout the New York City DMA on CBS's main feed. Not Alabama (unless they were being shown on a secondary outlet). Rutgers and the Big Ten would get that primary exposure on CBS's main feed.
No doubt the number 4 DMA (Philadelphia) would also carry Rutgers in that scenario. So the Big Ten would get preferential major network exposure against the SEC's best game in the Number 1 and Number 4 DMA in the Country even if Rutgers was only playing Slippery Rock.
When a Conference can hypothetically shop Slippery Rock/Rutgers over Alabama/Auburn to potential networks and advertisers in the Number 1 and Number 4 DMAs in the Country, you have a negotiating advantage.
Now to move on to a more realistic scenario, the Big Ten, being the Home Conference of Rutgers (and Maryland), would get preferential treatment, everything else being equal, in all the NEW Big Ten DMA's IN ADDITION to the old Big Ten DMAs. The Big Ten has just put the number of TV Households in Florida, Georgia, Alabama, and Mississippi in their negotiating and advertising quiver.