SMT Conference: Execs Discuss Whether The Media Rights Bubble Is About To Burst
A roundtable discussion of industry experts toss around the questions of whether the media rights bubble will burst this morning at the '13 Covington & Burling Sports Media & Technology conference. SNY President Steve Raab said, "I don't think there's a bubble. Maybe there's a leveling off. A bubble implies something popping, and I don't see that." Sports Media Advisors Founder & CEO Doug Perlman said, "This is not irrational exuberance." He cited competition for creating value. However, DirecTV VP/Content Reagan Feeney had words of caution, saying, "Our average cost is already over $100. These costs are up and somebody is going to have to pay for them." Big Ten Network President Mark Silverman noted, "Sports is the last live place where you watch television. Certain sports properties generate more value. Premium properties are always going to be worth a lot." RBC Capital Markets Managing Dir David Bank asked, "Where is the bubble? I don't see it. I'm not paying a lot more. I'm getting a lot more." Feeney said, "We're already seeing networks make tough choices. There has been some disruption. You can see it." Raab: "The burden is on the partnership between the property and the rightsholder to justify the value and make it work."