DirecTV set to take over Houston RSN it refused to carry

[Broe67]

AT&T (NYSE: T) and DirecTV (NASDAQ: DTV) are set to take over struggling regional sports network CSN Houston.

According to reorganization plans filed in federal bankruptcy court on Wednesday, Aug. 6, ownership of the network will be transferred from Comcast's (NASDAQ: CMCSA) NBCUniversal unit, the Houston Rockets NBA franchise and the Houston Astros MLB team.

AT&T and DirectTV Sports Networks will respectively buy 400 and 600 common units for $1 per share to own 100 percent of CSN Houston. The channel, currently known by the non-abbreviated moniker Comcast SportsNet Houston, will then join DirecTV's Root Sports network of RSN channels.

Comcast SportsNet Houston launched in October 2012 as the exclusive RSN home of the Rockets and Astros, moving the teams off 21st Century Fox-owned channels. But in a dynamic eerily reminiscent of Time Warner Cable's inability to gain carriage for Dodgers channel SportsNet LA in Los Angeles, Comcast could not reach a deal with the market's No. 2 pay-TV service, DirecTV. Subsequently, it could not get other local operators, such as Verizon FiOS (NYSE: VZ), to fall in line, either.

Covering only 40 percent of the Houston market, and lacking affiliate fees, CSN Houston struggled to maintain enough viewership and advertising to support a $1 billion contract with its affiliated teams. The joint venture sought bankruptcy protection in September.

The news comes amid a report by Multichannel News that Dish Network has dropped Comcast's CSN New England, which features the Boston Celtics.

During Dish's second quarter earnings call Wednesday, company chairman Charlie Ergen reiterated his opinion that RSNs should be converted to a la carte models.



http://www.fiercecable.com/story/di.../2014-08-07?utm_medium=nl&utm_source=internal

 

[Jimbo]

The viewership is what is causing the issue (bankruptcy), if they had some worthwhile programming on it they would have a viewership and not have had the issues.

 

[goaliebob99]

This is a good thing for DTV and CSN Houston. Charlie needs to get over his ANTI sports agenda and realize that sports programming is why Directv has more subs. After all look at the huge thread over in the dish forum where people complain about not getting games in HD. Directv does it right and look at NFLST as an example. They pull PPV to meet the demand and then a few hours later after the game is over PPV returns. Like I have always said, you can get MOVIES ANYWHERE! Sports not so much only RSN's and locals.

 

[Jimbo]

This is a good thing for DTV and CSN Houston. Charlie needs to get over his ANTI sports agenda and realize that sports programming is why Directv has more subs. After all look at the huge thread over in the dish forum where people complain about not getting games in HD. Directv does it right and look at NFLST as an example. They pull PPV to meet the demand and then a few hours later after the game is over PPV returns. Like I have always said, you can get MOVIES ANYWHERE! Sports not so much only RSN's and locals.

WOW !

Had you posted this a few years back during the football season you would have been shot ....
SOME people were complaining so bad that they couldn't get thier ppv movies on Sunday, you'd think that PPV was more popular than the ST was.

 

[Broe67]

Jimbo, the problem with PPV Sports is costs. Most of the events cost as much as your base package price, if it is a high end contender in the event.

 

[osu1991]

This is a good thing for DTV and CSN Houston. Charlie needs to get over his ANTI sports agenda and realize that sports programming is why Directv has more subs. After all look at the huge thread over in the dish forum where people complain about not getting games in HD. Directv does it right and look at NFLST as an example. They pull PPV to meet the demand and then a few hours later after the game is over PPV returns. Like I have always said, you can get MOVIES ANYWHERE! Sports not so much only RSN's and locals.

There is a difference in not having the games in HD and being forced to pay for 5, 6 or 7 RSN's because every team wants their own private channel. There is no need for individual channels for each team or conference. As shown with CSN Houston and with the fiasco in LA. There is no demand at the prices they want for individual team channels and the viewer numbers don't justify bundling RSN's in base packages for everyone.

 

[Jimbo]

Jimbo, the problem with PPV Sports is costs. Most of the events cost as much as your base package price, if it is a high end contender in the event.

Personally, I think a PPV channel like that is doomed from the start.
Who's gonna buy select games of the Rockets and Astros ?
Had they went as a RSN in the first place it probably would have done better, but then again, you still have to have something worth watching on the channel.

On D*, your RSN is part of your local package (proper package needs to be selected), so everyone in Houston would get the then RSN on thier TV's as long as they chose the proper package.
To buy the block of RSN's from D* was like $12-13 bucks, that would apply outside of the area.

 

[Jimbo]

There is a difference in not having the games in HD and being forced to pay for 5, 6 or 7 RSN's because every team wants their own private channel. There is no need for individual channels for each team or conference. As shown with CSN Houston and with the fiasco in LA. There is no demand at the prices they want for individual team channels and the viewer numbers don't justify bundling RSN's in base packages for everyone.

They don't need to be bundled in All packages, maybe a step up from the base would be good. Thats pretty much what D* has done. They actually offer other packages without now, but those are in the last several years, but before that the RSN was part of the package you got, pretty much regardless.

 

[osu1991]

They're not in the base package on Dish either, but on many providers they are. Personally, I think they should be ala carte in sports pack even though I would probably pay for them at least part of the year, in my opinion most wouldn't

 

[Jimbo]

They're not in the base package on Dish either, but on many providers they are. Personally, I think they should be ala carte in sports pack even though I would probably pay for them at least part of the year, in my opinion most wouldn't

Now see, thats a PPV I probably would go for, if I could get it for parts of the season, if it came down to that, provided it wasn't an outragous rate.

 

[Broe67]

I wish there was a fast way to change favorites lists.

Posted Via The FREE SatelliteGuys Reader App!

They're not in the base package on Dish either, but on many providers they are. Personally, I think they should be ala carte in sports pack even though I would probably pay for them at least part of the year, in my opinion most wouldn't

UVerse offers a Sports package that gives you the RSN's that are not in the U300 and lower package. Their U450 package includes them in the cost of the package.

 

[dishcomm]

AT&T (NYSE: T) and DirecTV (NASDAQ: DTV) are set to take over struggling regional sports network CSN Houston.

According to reorganization plans filed in federal bankruptcy court on Wednesday, Aug. 6, ownership of the network will be transferred from Comcast's (NASDAQ: CMCSA) NBCUniversal unit, the Houston Rockets NBA franchise and the Houston Astros MLB team.

AT&T and DirectTV Sports Networks will respectively buy 400 and 600 common units for $1 per share to own 100 percent of CSN Houston. The channel, currently known by the non-abbreviated moniker Comcast SportsNet Houston, will then join DirecTV's Root Sports network of RSN channels.

Comcast SportsNet Houston launched in October 2012 as the exclusive RSN home of the Rockets and Astros, moving the teams off 21st Century Fox-owned channels. But in a dynamic eerily reminiscent of Time Warner Cable's inability to gain carriage for Dodgers channel SportsNet LA in Los Angeles, Comcast could not reach a deal with the market's No. 2 pay-TV service, DirecTV. Subsequently, it could not get other local operators, such as Verizon FiOS (NYSE: VZ), to fall in line, either.

Covering only 40 percent of the Houston market, and lacking affiliate fees, CSN Houston struggled to maintain enough viewership and advertising to support a $1 billion contract with its affiliated teams. The joint venture sought bankruptcy protection in September.

The news comes amid a report by Multichannel News that Dish Network has dropped Comcast's CSN New England, which features the Boston Celtics.

During Dish's second quarter earnings call Wednesday, company chairman Charlie Ergen reiterated his opinion that RSNs should be converted to a la carte models.



http://www.fiercecable.com/story/di.../2014-08-07?utm_medium=nl&utm_source=internal

This is just the beginning. I predicted that these RSN's would wear out their welcome by charging fees so high, that even die hard fans would simply put down their collective feet and tell the providers "we aren't paying"..
The providers get wind of this. They then go back to the RSN and let them know that their fee demands are unacceptable.
I am a sports fan
I am not a fan of Charlie, but he's spot on here. These RSN's SHOULD be a la carte. Send a message? Sure. "Your programming ain't as popular as you think it is"...
Per subscriber costs may rise. Here's the rub. If enough people stay away then the RSN's position will be weakened.

 

[dishcomm]

Personally, I think a PPV channel like that is doomed from the start.
Who's gonna buy select games of the Rockets and Astros ?
Had they went as a RSN in the first place it probably would have done better, but then again, you still have to have something worth watching on the channel.

On D*, your RSN is part of your local package (proper package needs to be selected), so everyone in Houston would get the then RSN on thier TV's as long as they chose the proper package.
To buy the block of RSN's from D* was like $12-13 bucks, that would apply outside of the area.

I read the musings from those who believe services such as these new College RSN's/ The only way to make them palatable is for the p[rovider to spread the cost over the entire sub base. I object.
I don't want to pay for the Big Ten, Pac -12. Longhorn or SEC networks....Of course there arw fanatics out there that if possible would record these channels 24 hours per day. As if Women's Volleyball was a life or death matter..
Anyway, the point is, those services and the RSN's can go pound sand. Let those who want them, pay for them. Same goes for all those dopey band width gobbling niche channels that might get 3,000 viewers a week.

 

[Jimbo]

This is just the beginning. I predicted that these RSN's would wear out their welcome by charging fees so high, that even die hard fans would simply put down their collective feet and tell the providers "we aren't paying"..
The providers get wind of this. They then go back to the RSN and let them know that their fee demands are unacceptable.
I am a sports fan
I am not a fan of Charlie, but he's spot on here. These RSN's SHOULD be a la carte. Send a message? Sure. "Your programming ain't as popular as you think it is"...
Per subscriber costs may rise. Here's the rub. If enough people stay away then the RSN's position will be weakened.

NOT gonna happen.
Your RSN's are built into your local package as part of the package price, lots of things are, people look at thier package as a whole, not a line item list.
Now if your talking accessing the rest of the RSN's outside of your local, thats different, yes, that should be separate and last I checked, it is a extra fee, years ago it was like $13 p/m.

Remember, there was a time when they were not built into the package and you bought them as needed.
I don't recall when that happened, but I would not object to that as that would/should drop the cost of the over all package by about $10 pm.

I have no problem going back to that format, but I don't see that happening because its a revenue stream that the company has managed to get everyone to pay for, once something like that happens, they won't go back ...

Same thing happened with the HD Fee, the first few years, HD was NOT and extra fee, then after a few years, they started charging for it and the subs complained, some got discounts and as they drop off, D* is making a ton of new money from what use to be free.

Going back in price is not gonna happen ....
Remeber when the cost of Coffee went up because of something, thats something got resolved and the cost never came back down.

 

[dishcomm]

NOT gonna happen.
Your RSN's are built into your local package as part of the package price, lots of things are, people look at thier package as a whole, not a line item list.
Now if your talking accessing the rest of the RSN's outside of your local, thats different, yes, that should be separate and last I checked, it is a extra fee, years ago it was like $13 p/m.

I have a different view. And the facts are on my side. How many RSN's has Dish dropped or refused to do business with. Directv refused to bend over for Time Warner with the Dodgers thing. And it waited till the 11th hour to bring SEC on board.
In the OP it is indicated that several providers refuse to come on board.
My thinking is this...If one wants something, feel free to pay for it yourself. I would be ecstatic if the days of subsidizing are over.
I am perfectly willing to pay for whatever tv entertainment I want. I think everyone else should have to do the same.

 

[Jimbo]

I have a different view. And the facts are on my side. How many RSN's has Dish dropped or refused to do business with. Directv refused to bend over for Time Warner with the Dodgers thing. And it waited till the 11th hour to bring SEC on board.
In the OP it is indicated that several providers refuse to come on board.
My thinking is this...If one wants something, feel free to pay for it yourself. I would be ecstatic if the days of subsidizing are over.
I am perfectly willing to pay for whatever tv entertainment I want. I think everyone else should have to do the same.

Theres a BIG Difference between a SEC, BIG TEN network and a RSN.
The Conference Networks are NOT RSN's.
RSNs are your local sports channels.
The B10, SEC and so forth are Conference Networks, they should Not be listed as a RSN at all.

It would not surprise me if in the next year or so that the B10 and the SEC get moved out of the RSN section down to the espn area of channels.

That said, they have a lot of junk already down there that probably doesn't really draw the numbers to substantiate being there anyways.


Fwiw, thers ALWAYS gonna be more people on the Non Sports side of the ledger that doesn't know why they get stuck paying for Sports they don't watch, then again, why do I have to pay for all the Home shopping networks, lets make them a Pay channel, if you want it, buy it ... lets see how that goes over.

I don't want to pay for the HSN's, the QVC's the INFO channels, the religious channels, the MTV/VH1 channels .... lets let those channels be bought like sports channels are too.

Therse a HUGE difference here, the Sports channels DRAW people, the others I mentioned for the most part don't, those channels are on because they have to be in order to get the Big Boy channels.

 

[osu1991]

You dont pay for those shopping and religious channels. They pay to be carried. I disagree about the conference networks. They should be treated as an RSN and put in sports packages outside their geographic regions. I would love to see my bill line itemized per channel along with the equipment and other fees.

Posted Via The FREE SatelliteGuys Reader App!

 

[jcrandall]

I believe the college conference networks will continue to be treated like an RSN, they are carried in standard packages (Choice and above) in their local markets, and in the expanded packaged (sports pack on directv), much like a regional sports net. This is generally how these networks (Big 10, Pac 12, soon to be SEC Net) are carried on pretty much all the major carriers.

Doing that minimizes the providers cost on a conference network that may not be highly viewed in ares of the country that aren't their primary area. SEC for example may cost $4 in market and 25 cents out of market (just an example, not necessarily the actual rate). By putting it in Choice and up DirecTV is absorbing a $4 cost per sub in those areas increase. Then putting it in the sports pack for other areas may increase the sale of that package, while only increasing the cost of providing that package a little.

I doubt this model will change any time soon. The carriers want to minimize cost (keep it regional) and the providers want their big payment ($4 range/sub in market). Out of market is a relatively small part of the decision to carry these conference networks.

 

[Joe The Dragon]

This is a good thing for DTV and CSN Houston. Charlie needs to get over his ANTI sports agenda and realize that sports programming is why Directv has more subs. After all look at the huge thread over in the dish forum where people complain about not getting games in HD. Directv does it right and look at NFLST as an example. They pull PPV to meet the demand and then a few hours later after the game is over PPV returns. Like I have always said, you can get MOVIES ANYWHERE! Sports not so much only RSN's and locals.

How meany PPV HD slots due they have? Maybe when they get more over all room they need to make all RSN's full time HD and use the room they have now for part time HD for overflow HD needs.