Nah... not that different. Also, FSN has leverage as they're a package deal with FX, Fox Sports 1, fox movies, etc. Much harder to play hard-ball with a channel already on the air, packaged with other channels that some subscribers "can't live without". People's sattelite/cable bills go up every 2-3 years due to a number of factors... this will be one of those.
So, the carriers' contracts with FSN does not contain a clause that allows the carriers to end the contract or at least pay less to FSN in the event that FSN is no longer carrying the Rockets and Astros games, two of the most important programs on the station?
No clause to end the contract. Part of it is because of the way they negotiated FSN to be bundled with all your other Fox channels (FX, Speed... now FS1, Fox movies, Fox news). Its all or nothing... and you know there would be an uproar if Fox News was threatened to be taken away. They did negotiate a rebate due to the decreased value of the channel... but they didn't automatically pass on those savings to the subscribers (yes, cable and sattelite companies are not always the "good" guys). But yes... FSN is a USELESS channel in Houston without the local teams, yet all the providers are still forced to carry it and the subscribers are still paying for it.
Pay attention... You said this.... Pay for FSN at $2.50, going up to $3.50 or whatever FSN wants to aim for whenever renewal comes up. I responded with this... So......why does FSN have to pay the Astros now more than they were getting before when they were with FSN, when they can't charge DirecTV more now? We were talking about now.
Again, because that's how it works. They would be negotiating a new contract with the Astros NOW. Each time a network negotiates a new contract with teams, the rates go up. And then when the network negotiates a new contract with a provider, they ask for more. So the Astros get more each time their contract comes up. FSN gets more every time their contract comes up. And on and on it goes. When negotiating with providers, FSN has tons of leverage that CSN-H doesn't have, so they can command more from the providers than CSN-H could. Therefore, they can pay the Astros more than CSN-H can. The Astros went with CSN because they got ownership also, but I bet they can get a pretty deal from FSN. Who knows if it will be what they want, but there are good reasons FSN can pay more than CSN could make work.
OK... Can we agree that the providers having to pay FSN and CSN-H was cost prohibitive to the Astros getting $3.50 per subscriber. If so, the Astros can't go anywhere NOW but FSN without running in to the same problem as they did CSN-H. With that said, why would FSN want to give them more money if they don't have to? Why piss off the provider's subscribers with a rate increase following a year of them getting ripped off with no team coverage at full rates. Jim Crane pissed away his leverage running his mouth. FSN can't charge providers more because there is no real reason to unless they just want to put more money in their own pocket.
DirecTV (who owns Root sports) could easily get a bid, form a channel, and get favorable coverage into a market that they haven't tapped yet. FSN values the Astros/Rockets... and will pay at least market price for them (which is more than they were earning under the previous deal). Any channel (premium or otherwise) could raise their rates at any moment. In terms of FSN, if you go to war with them (as a provider) you risk losing not just FSN but FX, Fox news, and any other fox channel. They'll likely be able to raise the rates without much beef from the providers.
The Astros and Rockets could have had a similar deal with Directv (Root). In fact, I bet the Astros probably still can if and when CSN goes belly up.
So your position is providers paying FOX to not cover the team and CSN Houston to cover the teams wasn't cost prohibitive to getting carriage deals? Because Root Sports would run in to the same thing unless they didn't let the Astros have veto power. Like I said....where do the Astros have to go where they don't have the same issues besides Fox. Whatever Fox does give them ain't gonna be the figure that Crane says he needs to be competitive.
And the same issues will crop up, plus the fact that you major league pissed off 40% of the market (Comcast). There's a reason the Rockets are quiet. Don't give away your hand in the media like dumbass Crane has. And LOFL @ anyone wanting to start up an RSN with the Astros right now after this fiasco.
The same issues will not necessarily come up. The entire industry knows that DTV is usually the first domino to fall with carriage agreements. Root being run by DTV would have carriage on DTV on day one. ROFL at anybody making 20 year carriage decisions based on which way the wind is blowing right now.
(or, evidently, that half a dozen folks who have literally worked in this field are trying to educate him otherwise.) your new avatar, Granville:
If the Astros agree to just rights fees only (no ownership) then they wouldn't have or need veto power. It's much easier to get a directv station on in Houston at a lower price than it is to get a comcast owned station on at a premium price. As it is, carriers were ready to put CSN on... Just not at the price the Astros wanted. Without ownership, and with a negotiated increased rights fee, the Astros would be fine with whatever price the RSN charges the carrier to get the channel on. And, FSN is still always there and will make a bid.
They would have carriage only on their Network. The biggest Domino then becomes Comcast who has 40% of the Houston area subscribers. Besides Crane isn't getting anywhere near the Comcast money and he has set up a bunch of suckers up to believe his poor me I cant compete so there goes every player who starts making decent money.
As it is, carriers were ready to put CSN on... Just not at the price the Astros wanted. Can you not understand that is the problem here? Crane poor mouths us from here forward and uses it as his excuse for not being able to compete.
The horse is the Crane apologists around here. Boo hoo don't speak the truth about my Astros even though their owner is a hot mess.
