September 15, 2006
Inside on the MWC CSTV Comcat the mtn. Deal – Or is it All Just Still Conjecture?
Written by: JohnThere is a whole lot of chatter that has happened about the MWC CSTV Comcat the mtn. deal. Here’s some highlights from the chatter and links to more commentary:
Without divulging my sources, (a family member of mine helped put the CSTV deal together before it was sold to CBS), the real issue is with Comcast and their desire not to give BYU the re-broadcast rights. BYU is the only school looking for the re-broadcast rights and apparently they are highly pissed that Comcast is not budging on the deal and there is talks of BYU calling it off, which would include BYU becoming independent. I guess the CBS acquisition has been viewed as a disaster and that the MWC has no credibility right now inside. Also, Cecil Samuelson and Co. had a “hand-shake” negotiation about the re-broadcast rights but never put it in a contract and are now paying the consequences. Until it is sorted out with Comcast and BYU, KBYU will not show any immediate or day-off re-broadcasts. This sucks.
Thanks veddarhall Well, I guess Cecil Samuelson learned a great lesson. I bet Comcast’s purchase of CSTV may have changed much of this.
I know a lot of you are sick of hearing from me on this. But I do have some additional information that might be of some use.
1. CSTV has demanded outrageous rates for their channels
http://www.broadcastingcable.com/article/ CA6366091.html
Anyone who believes that mtn should cost almost as much as Disney Channel is not thinking.2. CSTV has demanded that their channels be on a basic or expanded basic package. In any new negotations with cable or satellite, they are demanding that CSTV and mtn be moved from a sports tier to a general tier (thereby increasing the number of subscribers and revenue).
It is my understanding that this is the major sticking point with the satellite companies.
3. CSTV has not been in serious negotiations with any of the major cable or satellite companies for about a month now. CSTV indicated that they were unwilling to negotiate off of their deal. This essentially took Time Warner and Cox off the table. It is my understanding that DirecTV and Dish continued to discuss trying to keep CSTV on a sports tier and make mtn on the sports tier as well, but that has since died.
4. CSTV is not in a good financial position right now. Because they are wholly owned by CBS, it is difficult to prove this out by looking at financial statements. But after having dicussions with those directly involved with the negotations, their gut is that CBS has delivered the ultimatum that they need to be financially contributing to the company by the end of this year.
5. The latest twist is that Comcast sports (in an effort to break even on producing the MWC games) will be offering some of the games on their network. This was apparently a recent change that Comcast made to try to make sure they at least get their investment back from producing the games.
For those of you that continue to state that this is posturing between companies and this occurs regularly, I respectfully disagree. I have been in the cable industry for a few years now and I have never seen anything quite so mismanaged as this.
I don’t know who has done a worse job, CSTV or MWC officials. It is really too bad that they attempted to launch this new channel right now. It should have waited at least a year or two.
P.S. For those of you that want to question my sources, I work for Cox Communications in New Orleans. I was previously working for Cox in Phoenix and Las Vegas.
Thanks whoisjohngalt
Tonight ended the hopes for the current deal with Dish/DirecTV. Here’s why:
1. The negotiations have stalled on price. Dish/DirecTV would love to broadcast at no cost—the question is what they will pay. They have said the current asking price is no good. I have spoken to a contact at one of these companies and he said he sees no reason to pay what they are asking. That is a fact (or at least it was a few days ago when I spoke with him).
2. In response, the MWC/CSTV/MTN have asked fans to put pressure on them by calling and by switching to Comcast/other.
3. Because the Tulsa game was not going to be shown live, ALL THE FANS THAT CARE ENOUGH TO CALL AND/OR SWITCH HAVE DONE SO. There will be no new group of fans calling dish/directv this week. Dish/Directv have decided the volume of fans that care is not sufficient to pay the asking price.
4. Fans are pissed off at all parties. But this week I imagine the MWC/BYU/CSTV/MTN will take the heat. The decision to pull the rebroadcast AT THE LAST MINUTE was NOT made by dish/directv. It was the absolute worst thing the MWC/BYU/MTN/CSTV could have done. They have pissed off all out of state BYU fans (those who care the most about the satellite deal).
Given all of this, think about the next game on the mtn. Suppose dish/directv refuse to pay the asking price and mtn is still not listed. DO YOU REALLY THINK BYU AND THE MWC WILL LET OUT OF STATERS GET SCREWED AGAIN LIKE THEY DID TODAY? I think there is no way that happens. Tom Holmoe will know that if the next game is “blacked out” the way this one was that folks will start calling for him to get tossed and will refuse to give money to BYU. He will hear from so many pissed off fans that he will do whatever he can to make sure that there is at least a rebroadcast of the game.
Dish/Directv know this is not a tenable equilibrium for BYU fans. They know that BYU/MWC will have to give in next time. Knowing this, there is NO WAY they will pony up the money that is being asked.
CSTV/MTN/MWC/BYU bluffed today, and Dish/DirecTV called it. They know that whatever hardball talk they hear before the next game will be more of the same.
The only way this gets done now is if/when CSTV lowers the ask. That has to happen eventually and everybody knows it. The question is: how many more games do we have to miss before the children in charge of the MWC/BYU/CSTV side of these negotiations realize it?
Thanks Milton
I okayed it with the gentleman I spoke to, who was very helpful and forthcoming, that I could come here and lay it out. Feel free to ask questions.
Here are CSTV’s two main points on distribution.
1. They are the lowest cost Regional Sports Network in the country.
2. They are the ONLY Regional Sports Network that accepts Tier Carriage, within their region. (So, they’ll let carriers put them in the digital tier, instead of a basic tier. No other regional sports network accepts that.)Point #2 also cuts down on the asking price, but cause a carrier may only have 40% of the subscribers in that higher tier.
They’re making the mtn. extremely accessible to carriers.
Prior, I was of the opinion they were asking too much money. Having my questions answered, I think they’re making it quite affordable, and the carriers are the parties responsible for holding this up.
Thanks tkh9
All seems like it is still rumor mill, but it’s interesting conjecture.

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