Despite increasing pressure from over-the-top digital networks, rising consumer outcry and the possibility of Congressional interference, leading sports TV execs this morning said the traditional cable bundle will survive, in large part because of the value of sports programming. During the opening session of the ‘14 NeuLion Sports Media & Technology Conference, which is being held today and tomorrow at the Crowne Plaza Times Square in N.Y., panelists said the high ratings and live nature of their programming still provide significant protection against those mounting threats. "It really all comes down to the quality of your content," said CBS Sports Chair Sean McManus. "Eighteen or 20 dollars a month for sports content (in a cable bill) is equal to the cost of a movie. We're providing amazing quality content. But if you listen to regulators, they make it seem like the consumer isn't getting good value. But we're delivering enormous value and content that is DVR-proof and is the best drama on television. None of us are gouging the customer in any way." McManus said a move toward a la carte programming, which would allow consumers to pay only for the channels they want and would perhaps be forced along by a new Republican-controlled Congress, would not ultimately harm sports networks, given the high demand for their content. "But other networks with a smaller, but loyal, audience will go out of business,” he said, “and I don't think the consumer understands that.” Fox Networks Group President & COO Randy Freer predicted a "rebundling" in which there might be a shift in how cable and satellite distributors package channels, while still preserving the core model. "The future is still rosy,” Freer said. “The deeper you get into this, the more you realize the opportunity that is being created. You can get closer to customers [and] give more of what they want. And what they want is good value."
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Levy says OTT networks are not a threat to the
current cable business model
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EXPERIMENTING WITH OTT NETWORKS: Despite comments about the viability of bundling, each of the leading sports networks is experimenting heavily in OTT networks and other digital-only ventures of their own. "We're embracing (over-the-top),” said TBS President David Levy. “It's not a threat to our business. We think it's an add-on to our business." Levy added that OTT programming is a means to help attract the "nevers" that otherwise are not interested in a cable or satellite TV subscription. "How do we get the nevers?" he said. "That's the key going forward. The value is there, but getting to the nevers is the key." McManus called OTT a “hedge against companies like Aereo, and other new technologies."
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Lazarus expresses interest in NBC landing
the NFL's Thursday night package |
NOT PUT OUT OVER BLOWOUTS: CBS' initial one-season deal to show NFL games in primetime on Thursday night is done, and despite an extended series of blowouts, McManus said he was pleased with the debut effort. "We set a number of very specific goals, foremost establishing Thursday night as a viable destination for fans, and I think it worked very well for us," McManus said. "We had an enormous amount of blowouts, but the ratings were still good. But the worst NFL blowout is still better rated than pretty much anything else out there." Predictably, each of the execs expressed keen interest in picking up the Thursday night package for next year. And NBC Sports Group Chair Mark Lazarus, referencing last night's election win for Republicans, turned to McManus and quipped, "It's not a good time for incumbents."
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Freer feels MLB needs to "work on a few things" on
making playoffs more cohesive for fans |
DIFFERENCE OF OPINIONS: Freer sharply disagreed with MLB Commissioner Bud Selig's recent suggestion that Fox' distribution of playoff games on FS1 needs to be reviewed. "No, not at all," Freer said when asked if he agreed with Selig. "Baseball needs to work on a few things to make the playoffs more cohesive for fans, (such as) where to find particular games across all the various networks. But we're very happy with our first foray with this, putting games on FS1. A lot more people now know about FS1 and where to find it." Levy, Freer and Lazarus, each of whom work with MLB, all lauded incoming Commissioner Rob Manfred and said they expect him to be open-minded in working with the sport's TV partners, particularly with regard to pace-of-play issues. "I want to give Bud the due he deserves,” Levy said. “He's done a great job leading the sport for a long time, and he's given Rob a tremendous foundation from which to build. But I think Rob will be more apt to figure out ways to work with TV partners, giving us more access to players. He'll be open to a lot of ideas. I think he'll be open to what Randy and I need to do with our businesses."
ENOUGH MONEY TO GO AROUND? Levy said of threats facing the sports TV business, “The question I ask is whether there is enough advertising dollars out there to support all the sports programming available." He said. "If you're a brand marketer, there are a lot of opportunities out there."
ENOUGH MONEY TO GO AROUND? Levy said of threats facing the sports TV business, “The question I ask is whether there is enough advertising dollars out there to support all the sports programming available." He said. "If you're a brand marketer, there are a lot of opportunities out there."
