MSG Chair JAMES DOLAN sat down for a rare Q&A with the HOLLYWOOD REPORTER's Matthew Belloni, who called Dolan "one of the most active (and sometimes polarizing) entertainment moguls" in N.Y. Dolan addressed the emergence of OTT video services, the cable-carriage landscape, MSG's competition with Barclays Center and several other topics. Excerpts of the Q&A are below.
Q: You are at the center of the video business. Where will it be in five years? Dominated by over-the-top services?
Dolan: No. Nothing changes that rapidly in this business. There's still somebody, somewhere, with a black-and-white TV. The whole over-the-top piece is really about content on demand -- also selection. That's what consumers really want.
Q: Do you consider these new OTT services to be friends or enemies?
Dolan: Neither. They're alternatives. They have to use our cable to get to the home, so from that point of view, they're a friend. What's interesting about OTT services is, anyone could do one. You could do an OTT service! Just rent space, make deals with programmers. There's no big capital investment required.
Q: We've seen more cable-carriage standoffs lately --
Dolan: They're going to get worse. The retailer is under pressure from things like over-the-top, and their margins are getting squeezed. The retailer needs to be more flexible with their packages. Meanwhile, the programming ecosystem all centers around the big, expanded basic bundle.
Q: MSG and Barclays Center are pitted against each other. How do you see that rivalry?
Dolan: If there's any rivalry, it's in the rhetoric more than anything. The Garden really hasn't seen a downturn of business. We're still doing great. There's plenty of venues in New York. There's only one Madison Square Garden.
Q: Someone said that during a negotiation, you got out your guitar and started playing a song called "Lockout Blues." True?
Dolan: That was during the NBA lockout. I was on the negotiating committee.
Q: You're paying [Knicks President] PHIL JACKSON $12 million a year for five years. Still worth it?
Dolan: You got to believe, baby! I believe, I believe!
Q: Jackson has said he was assured by you that there wouldn't be any interference. But at what point does the leash get tugged?
Dolan: I don't see it happening. Phil is a brilliant basketball guy, and he and [Knicks GM STEVE MILLS] are working together great.
Q: What do you say to fans who want you to sell?
Dolan: I don't respond to people like that (HOLLYWOODREPORTER.com, 4/8).
