Quien Es Mas Macho? Roberts o Dolan?
Cablevision CEO Pops Programming Question At Conference
Mike Farrell -- Multichannel News, 1/7/2010 11:47:57 AM
Cablevision Systems CEO James Dolan caused a minor stir at the Citigroup Global Media & Telecommunications conference in San Francisco late Wednesday when he asked Comcast chairman and CEO Brain Roberts what impact he thought rising programming costs could have on the industry.
"Can you talk a little bit about what concerns you have for the basic bundle and the fact that the cost of it continues to grow, what would be the impact for our businesses both programming and also distributors?" Dolan asked.
"I should start by saying, what do you think," Roberts jokingly replied, referring perhaps to Cablevision's ongoing carriage dispute with Scripps Networks Interactive.
"I'm sitting here, you're sitting there," Dolan parried.
In his reply, Roberts basically acknowledged the tensions between programmers and distributors, ending with the thought that thankfully, new products like broadband, telephone and commercial services are softening some of the blow.
"If this was all we had [video], it would be really bad," Roberts said.
Pali Research media analyst Rich Greenfield, in a blog posting, took Dolan's question as continued proof that the Cablevision CEO is vastly underestimated by the investment community.
In the blog entitled "Jim Dolan Essentially Asks Brian Roberts Why Don't You Take a Hard Line on Programming Costs Like Me?", Greenfield noted that investors don't give Cablevision and its management nearly enough credit, instead focusing on missteps the company may have made in the distant past.
"However, they [Cablevision] have guts and are willing to take a stand unlike anyone else in the media sector," Greenfield wrote, adding that he was "literally stunned" when Dolan asked his question at the conference.
Greenfield was not particularly impressed with Roberts' response.
"It took Roberts 811 words to answer Dolan's question and the rambling answer (paraphrasing) was (1) I don't have a great answer, (2) glad I have higher margin businesses such as broadband and voice or we'd be in really bad shape just being in the video business and (3) if cable systems don't work out well, at least we have hedged our bets at Comcast by trying to acquire NBC," Greenfield wrote.
Moreover, Greenfield opined as to what the Comcast CEO should have said:
"Even more surprising was that Roberts' response did not include one of the following:" Greenfield wrote.
• "'Hey Jim, I think you are doing the right thing fighting ever escalating programming costs (meaning Scripps), we should be looking harder and harder at what channels make economic sense to keep as deals are renegotiated'
• ‘Well we have channels that were used to drive digital penetration that we pay a lot for now that may not be as important today as they were five years ago (such as Encore), which could create opportunities to mitigate growing retrans costs.'
Instead, we are left with the distinct impression that Comcast, despite nearly 24 million subscribers, is essentially helpless in its programming cost fight," Greenfield continued. "We view this as a meaningful positive for broadcasters/cable network programmers and in turn, a negative for the multichannel video industry (cable/satellite/RBOC)."
Late Thursday, Cablevision SVP of media relations Charlie Schueler commented that "Mr. Dolan and Mr. Roberts are old friends and Jim thought Brian had a great answer."
Added Comcast's Jennifer Khoury: "Brian and Jim have had a long relationship and his question was perfectly appropriate. We don't agree with how the Q and A has been characterized."
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sorry Joe Booth, Rich was right. Comcast can't tell it like it is because it has dogs in both fights and doesn't want to take more heat when it jacks rates on its own programming.
Rememebr Brian saying the NBCU cable nets are underpriced? I'll bet you a mile of coax he's the only cable guy in America who thinks so...
Paul Lancaster - 1/8/2010 3:06:08 PM EST -
I think what Rich Greenfield really ment to say was...
Joe Booth - 1/8/2010 11:59:40 AM EST -
Wow, I didn't know Rich Greenfield was able to so accurately interpret what they meant to say, vs. what they actually said. Maybe it is just a matter of preferring to negotiate privately vs. in the press? Not as exciting for reporters, but that's not really the point, is it?
Sean - 1/7/2010 2:44:47 PM EST
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