Author Topic: MSGN - MSG Networks  (Read 29706 times)

Gregmal

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Re: MSGN - MSG Networks
« Reply #60 on: September 19, 2019, 11:44:03 AM »
To my knowledge, the NBA package blacks out local network games. I thought the MLB ticket or whatever was the greatest deal ever until I realized it blacked out(for NY/NJ folks) Yankees, Mets, Red Sox, and any ESPN/nationally televised game. I am pretty sure the other leagues do the same.


dwy000

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Re: MSGN - MSG Networks
« Reply #61 on: September 19, 2019, 11:47:53 AM »
MSG GO is only a quasi-direct line to their customers.  It's a free service but runs through the cable co.  If you go onto it, the first thing they ask is what cable company you have.

They need to create a streaming option, subscription service to fans but that would likely cause affiliate fees to plummet because Altice no longer has an incentive to hold the non-sports fan hostage for the price.

Gregmal

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Re: MSGN - MSG Networks
« Reply #62 on: September 19, 2019, 11:53:38 AM »
MSG GO is only a quasi-direct line to their customers.  It's a free service but runs through the cable co.  If you go onto it, the first thing they ask is what cable company you have.

They need to create a streaming option, subscription service to fans but that would likely cause affiliate fees to plummet because Altice no longer has an incentive to hold the non-sports fan hostage for the price.

I think offering this to out of network people is a good way to give it a trial run. There's NYers all over the country. People who likely don't haver it now and their only option is paying like $150-$200 for the packages offering all the games.

spartan

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Re: MSGN - MSG Networks
« Reply #63 on: September 19, 2019, 12:00:10 PM »
To my knowledge, the NBA package blacks out local network games. I thought the MLB ticket or whatever was the greatest deal ever until I realized it blacked out(for NY/NJ folks) Yankees, Mets, Red Sox, and any ESPN/nationally televised game. I am pretty sure the other leagues do the same.

Do we have any way of knowing whether this arrangement will continue?

Gregmal

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Re: MSGN - MSG Networks
« Reply #64 on: September 19, 2019, 12:05:39 PM »
To my knowledge, the NBA package blacks out local network games. I thought the MLB ticket or whatever was the greatest deal ever until I realized it blacked out(for NY/NJ folks) Yankees, Mets, Red Sox, and any ESPN/nationally televised game. I am pretty sure the other leagues do the same.

Do we have any way of knowing whether this arrangement will continue?

The leagues are governed by the owners. So I can't imagine they would be changing anything seeing as how the owners typically own the TV rights to their teams and a very important way of monetizing that is through TV deals. Last thing they'd want is to undercut that.

oscarazocar

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Re: MSGN - MSG Networks
« Reply #65 on: September 19, 2019, 01:04:53 PM »
Local market games are blacked out for this very reason.  You can probably get around that with a VPN workaround, but most people won't bother.

https://www.nba.com/leaguepass/blackouts

spartan

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Re: MSGN - MSG Networks
« Reply #66 on: September 21, 2019, 12:50:20 PM »
Great analysis on ESPN subscriber losses.

https://www.outkickthecoverage.com/espn-loses-two-million-more-subscribers-in-fiscal-2018/

High fixed costs + plummeting revenue = bad news bears

Not entirely relevant to MSGN, which is a niche product and doesn’t suffer from SJW ideology. Nevertheless, stemming the tide of cord cutting is not a game I want to play.

Spekulatius

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Re: MSGN - MSG Networks
« Reply #67 on: September 21, 2019, 08:21:23 PM »
Great analysis on ESPN subscriber losses.

https://www.outkickthecoverage.com/espn-loses-two-million-more-subscribers-in-fiscal-2018/

High fixed costs + plummeting revenue = bad news bears

Not entirely relevant to MSGN, which is a niche product and doesn’t suffer from SJW ideology. Nevertheless, stemming the tide of cord cutting is not a game I want to play.

It’s entirely relevant to MSG, because the monthly cost so subscribe is similar and those costs have been creeping up significantly, so much that people who don’t care about this content or only care marginally started to notice and just cancel. The question is  -can those losses be made up by targeting enthusiasts and charging those folks more? I am not sure, and if they can’t, it pretty much means, we have seen peak sport and finally some of the expenses related to Tv rights and player salaries will have to be scaled back.

The other risk is that they may price younger folks out of the market, so they can’t afford to watch this and if they are not interested in a sport when they hit 20, they probably won’t care about it for the rest of their life. That would be a slow demographic shift, but it would be permanent, sort of what happens to baseball.
« Last Edit: September 21, 2019, 08:30:55 PM by Spekulatius »
Life is too short for cheap beer and wine.

no_free_lunch

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Re: MSGN - MSG Networks
« Reply #68 on: September 23, 2019, 11:21:29 AM »
You guys make some good points.

The big issue here is that Spek mentions scaling back expenses if subscribers drop.  As we all know that isn't possible here.  Your costs are set to rise 3% each year, whether you add or remove subscribers.  If you have subscriber losses in MSGN, then that lost revenue will go almost directly against earnings.

I am out for now.  I still like the huge buybacks but I have a small gain and I don't know the odds well enough to proceed.

Sombunall

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Re: MSGN - MSG Networks
« Reply #69 on: September 23, 2019, 11:35:29 AM »
90% of their revenue is from affiliate fees... which come with price escalators.

That's how they're able to protect their margin... even in the face of subscriber losses.

The more and more I look at this, the more and more I like it.