December 5, 2017 at 3:16 pm #38786
Big changes could be ahead if FOX sells its regional networks to Disney, owner of ABC and ESPN. The Cards are to own 30% of FS Midwest as part of the new $1B rights deal that runs from 2018-2032.December 6, 2017 at 1:34 am #38814
And how much would they own if ESPN buys them up?December 6, 2017 at 8:48 am #38815
We have no way of knowing what the contracts say (if anything) about ownership rights when one of the two parties sell. My base assumption would be that the Cards continue to own 30% with ESPN holding the other 70, but that is just a guess.
What may be most interesting to us on the outside is what changes ESPN decides to make to the RSNs once they take over and how that might affect what we see and how much we pay for it. All of that is down the road, of course.December 6, 2017 at 10:42 am #38840gscottarParticipantPaid - Annual
It is an interesting development. ESPN appeared to be doomed but this might be their ticket to survival. Disney has deep pockets though.December 6, 2017 at 10:47 am #38844bicyclemikeModeratorPaid - Annual
Interesting. ESPN certainly needs to address their declining numbers. The entire industry that was built on cable customers is in decline, as traditional home entertainment consumption moves to internet providers.
What I do not quite understand is this comment from the article:
Source says Murdoch has not been high on the RSNs for several years. Same old media story: rights fees rising at a faster rate than affiliate revenue.
This same scenario will be happening with ESPN’s ownership. Thus it looks like they are attempting to reverse their current trend in the short run, but to do so are taking on another source of revenue with declining NOI.December 6, 2017 at 10:49 am #38847
bikemike, I hear you. I fear this could end with higher prices/fewer options for the consumer. I surely hope not, though.December 7, 2017 at 7:07 pm #38963bicyclemikeModeratorPaid - Annual
I fear this could end with higher prices/fewer options for the consumer. I surely hope not, though.
Yeah, I can see that as a possibility. That is the way it often goes. In corporate-ville, there is so much M&A activity as firms can gain efficiencies by combining. But a negative outcome is that it can also reduce consumer choice. Not too mention jobs lost, usually middle class jobs. The execs make out like bandits in those situations, but employees often are shown the door due to over-lapping tasks.December 14, 2017 at 8:46 pm #39760
The sale was formally announced Thursday morning.December 15, 2017 at 1:05 pm #39811
Will the new FCC ruling have any effect on streaming mlb or other sports options?
And Brian you will begin to see some of these cord cutting options begin slowly to creep up in price along with internet. They’ll figure out a way.December 15, 2017 at 3:54 pm #39830
I have very little doubt the bottom line will be pro-big business and anti-consumer.September 30, 2018 at 6:59 am #71336
An update on this situation.September 30, 2018 at 12:19 pm #71347SoonerinNCParticipantPaid - Annual
Prices are likely to go up. There is not enough competition to prevent it. This allows a sweetheart deal with the teams for access rights that enriches the teams and for the cable company to soak the consumer for it’s profit.
There is an old adage that the longer you are with a vender the greater advantage to the vendor. I was once responsible for negotiating insurance contracts for a mid-size company. In my first year on the job the insurance company that had provided our company paid employee life insurance for years hit us with a renewal contract with a 33% increase in premiums. Our insurance consultant recommended that we accept. I said no, we are going to put it up for bid. We ended up with nearly a 20% reduction in premiums. Some fly by night insurance company;no, it was with Travelers. We also got a new insurance consultant.
You do not have the luxury of going out for bids with little or no competition.November 20, 2018 at 9:01 am #74668November 20, 2018 at 10:07 am #74694gscottarParticipantPaid - Annual
That is interesting. I kind of figured Fox would try to get the RSN’s back but maybe not. Amazon obviously has deep pockets.November 20, 2018 at 2:23 pm #74732
Will we have drones delivering Helmet Nachos?January 11, 2019 at 11:48 am #79813January 11, 2019 at 12:18 pm #79817stlcard25ParticipantPaid - Annual
Brian, for we laymen, what should we be hoping for in this scenario? Is Fox bowing out a bad sign?January 11, 2019 at 2:22 pm #79828
Hard to say. If a new media company acquires the RSNs, it could complicate access. The goodness of FOX was that it was a known, but since they had made the strategic decision to sell last year, it isn’t surprising they did not change their mind this year.January 11, 2019 at 3:42 pm #79834BlackHillsCardParticipantFree
I’ve read that Sinclair Broadcast Group *gag* was probably the favorites to get the RSNs.January 12, 2019 at 6:41 pm #79881David HellerParticipantFree
Could the Cardinals buy Fox’s stake in Fox Sports Midwest considering the fact they own a minority stake in the network? Has the DeWitt’s expressed any interest in doing so?January 12, 2019 at 7:09 pm #79882
Welcome, David. First question – yes, they could try. In fact, the YES Network is part of the group of 22, and there have been rumors the Yankees may want to buy it back. Second – I haven’t heard anything about that, but I will see them in about 10 days and will ask.May 2, 2019 at 9:39 pm #89694
Sinclair is being reported to be the winner and will be the new majority owner of FOX Midwest. The first story is from April 19. The latter is from tonight. The formal announcement may be Friday.May 2, 2019 at 9:48 pm #89698Cardinals27ParticipantPaid - Annual
I hope FSM coverage won’t change much.May 7, 2019 at 1:03 pm #90176May 7, 2019 at 3:19 pm #90179Oquendo11ParticipantFree
I have NO desire for even one cent of my money to go to Sinclair. So that means not only will I not subscribe to FSM, I will not subscribe to MLB Network or any other service and rebroadcasts Sinclair’s broadcasts. (I assume that what ever service would have to pay Sinclair a portion of my subscription fee.)
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