I think you guys are missing the point of the deal just a bit. KU is going national here and frankly isn't really concerned with the local markets as they know they already have those well in control.
I have Time Warner in NY and I can tell you that every day there are channels popping up (many sports and university oriented) that carry all kinds of content. That's what KU is looking to do. KU fans in every city will now get access to the 6 ball games you could only see on Jayhawk TV before and now all these other games (volleyball, women's basketball, track, etc...)
That's what the Big 10 Network does. This way KU basically has it's own Big 10 network focused solely on them. The trick here is that it's only available to Time Warner customers but from what I can tell TW is attempting to pretty much take over every last customer in the country and they are convinced sports is a great way to get there.
This is all about a push for a greater national presence for KU. IMG and Time Warner sure seem to think KU is worth the $$.