Comcast close to launching RSN in Houston

Jet Blast · May 24, 2010

This would be a death blow to FSHouston if it happens.

Comcast close to Houston TV rights deal

By JOHN OURAND
Staff writer
Published May 24, 2010 : Page 03
Comcast has emerged as the clear front-runner in the bid to obtain local TV rights for the Houston Astros and Rockets, according to several sources.

Comcast executives are expected in the next few weeks to fly to Houston, where they could finalize the deal. That agreement would lead to the launch of a new regional sports network in the market starting with the 2012-13 NBA season.

In order to make the deal, the teams are expected to exercise an out-clause to their long-term rights deals with Fox Sports Houston. Exact terms of those deals are not known.

Comcast’s bid would have the Astros and Rockets owning a combined 70 percent to 80 percent of Comcast SportsNet Houston, with Comcast holding the balance.

If completed, the move to go with Comcast would be a blow to Fox Sports Net, which has held the rights to the teams for a decade via Fox Sports Southwest and Fox Sports Houston.

FS Houston will continue to carry Astros and Rockets games for the next two seasons. While the loss of its biggest programming draws will hurt, FS Houston will continue to be carried on Houston’s cable, telecommunications and satellite systems with programming from the Big 12 Conference and local high schools.

In Houston’s outer markets, FS Houston could show games from the Texas Rangers and Dallas Mavericks that are carried by its sister network FS Southwest.

The bidding process has been a crowded one, with up to four companies jockeying for the teams’ rights (see SportsBusiness Journal, Feb. 22-28 issue). The amount of high-profile bidders underscores the importance distributors are placing on local sports rights.

The teams considered selling their rights to a combined bid from DirecTV and AT&T, but sources described that bid currently as a long shot.

AT&T’s interest comes from the fact that it has been adding video subscribers in Houston, reporting more than 200,000 TV subscribers in that market. AT&T also operates video systems in Los Angeles, Chicago and Dallas.

If Comcast is able to complete the deal, it would follow the strategy of other Comcast-owned RSNs. The Cubs, Bulls, White Sox and Blackhawks own 70 percent of CSN Chicago; the Giants hold 30 percent of CSN Bay Area; and the Mets hold 80 percent of SportsNet New York.

But not all of Comcast’s RSN launches have been smooth. Comcast’s RSN in Portland, for example, is still struggling for distribution. It does not have deals with DirecTV, Dish Network and several local cable operators. Comcast also had problems working out a distribution deal for its Mountain West Conference college channel, the Mtn.

Comcast wanted the rights as a way of continuing its strategy of operating RSNs in markets where it is the dominant cable provider. Comcast is Houston’s biggest cable operator, with about 700,000 of the market’s 1.2 million basic video subscribers. Comcast currently does not have an RSN in Texas.

The Astros and Rockets have tried to set up their own RSN before. In 2002, they moved to launch the Houston Regional Sports Network. Fox filed a lawsuit, leading to a 20-month legal battle. FSN eventually signed a rights deal with the teams under which they still are operating.

In the most recently completed regular seasons — 2009-10 for the Rockets and 2009 for the Astros — the two teams each averaged approximately 61,000 viewers per game for their FS Houston telecasts.
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http://www.sportsbusinessjournal.com/article/65804

YaosDirtyStache · May 24, 2010

So would this mean those with satellite will be unable to see the games? I understand competition for programmers, but for the program itself, couldnt they garner higher ad revenues from having 100% of the paid-for television market by being carried on both types of service?

i dont get essentially alienating a percentage of fans that dont carry comcast...sucks for those in apartments that have those TVMax or wtv, and sat owners.

droxford · May 24, 2010

YaosDirtyStache said:

So would this mean those with satellite will be unable to see the games? I understand competition for programmers, but for the program itself, couldnt they garner higher ad revenues from having 100% of the paid-for television market by being carried on both types of service?

i dont get essentially alienating a percentage of fans that dont carry comcast...sucks for those in apartments that have those TVMax or wtv, and sat owners.
Click to expand...

I can't imagine that the Rockets would sign with a company (Comcast) that would not deliver broadcast through competitors (DirecTV, Dish Network, uverse, FIOS, etc.). The Rockets would lose a LOT of visibility that way, and would isolate a lot of potential customers.... lost business.

That's just not good business sense.

MadMax · May 24, 2010

all i need to know: can i get this channel on uverse?

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Comcast close to launching RSN in Houston

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