[opendtv] Re: News: Disney Open to Basic-Cable-Network Buys
- From: "Dale Kelly" <dalekelly@xxxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 29 May 2008 16:45:02 -0700
Bert wrote:
> It looks like Disney is going after ownership of as many "content
> streams" that have national coverage as it can afford. Such as ESPN,
> A&E, Lifetime,
I believe they already own ESPN and perhaps the other too.
> -----Original Message-----
> From: opendtv-bounce@xxxxxxxxxxxxx
> [mailto:opendtv-bounce@xxxxxxxxxxxxx]On Behalf Of Manfredi, Albert E
> Sent: Thursday, May 29, 2008 3:06 PM
> To: opendtv@xxxxxxxxxxxxx
> Subject: [opendtv] Re: News: Disney Open to Basic-Cable-Network Buys
>
>
> I'm trying to parse this. The article seems to mix two different topics.
>
> It looks like Disney is going after ownership of as many "content
> streams" that have national coverage as it can afford. Such as ESPN,
> A&E, Lifetime, and so on. And it already owns the ABC content that has
> national coverage, within the limits imposed on hours of the day by the
> FCC.
>
> This quote also refers to buying up content streams with national
> coverage:
>
> "He said Disney looks at every basic-cable network that is up for sale,
> 'but if we were to step up [to buy], it would be with great caution. We
> are fairly rigorous.'"
>
> So much for content.
>
> Then comes the subject of distribution media. It looks like Disney is
> not trying hard to buy into that:
>
> "There's little Disney interest in buying more TV stations to augment
> ABC, given that broadcast-TV growth prospects are cloudy and its
> existing 10 owned-and-operated stations are "solid," Iger said, adding
> that Disney won't be a seller, either."
>
> The question I have is, how would the picture change if (a) Disney did
> not have to see the 39 percent national cap to limit their growth, and
> (b) they considered clever *nationwide* use of their new OTA multicast
> capacity? Wouldn't that change rather dramatically the "growth prospects
> are cloudy" concern they have?
>
> This sounds similar to the NBC "rebranding" stuff we saw recently. What
> these two conglomerates are after is 24/7 content streams that achieve
> national coverage. My guess is that if they could also acquire a
> distrbution medium with 24/7 national coverage for some of this content,
> they might show more interest.
>
> Disney only has 10 O&Os? Wow. If they aren't interested in owning a
> potential nationwide distribution OTA plant, I'll bet someone else would
> be.
>
> Bert
>
> --------------------------------------
> Craig Birkmaier posted:
>
> Disney Open to Basic-Cable-Network Buys
> Media Giant Not Interested in Seeking More Broadcast Stations for ABC
>
> By Robert Marich -- Broadcasting & Cable, 5/28/2008 2:08:00 PM
>
> Disney would consider consolidating its hold on basic-cable ventures
> Lifetime Networks and A&E Television Networks, but it would not seek
> more broadcast-TV stations, president and CEO Bob Iger told an investor
> conference Wednesday hosted by researcher Sanford C. Bernstein.
>
> He indicated on-and-off discussions to increase Disney's 50% stake in
> Lifetime and 37.5% stake in A&E, although nothing is imminent.
>
> "We've talked about it over time and seeing whether there is a way to
> restructure in some fashion," he said, "and we will continue to explore
> those discussions." Minimizing taxes on any transaction would be
> difficult but can be structured, he added.
>
> Disney would love to buy the remaining 20% of its profit-spinning ESPN
> juggernaut that is owned by Hearst, but Iger said that stake would be
> too expensive. Plus, Disney has "a great relationship" with Hearst that
> makes joint ownership easy from an operational viewpoint, he added.
>
> He said Disney looks at every basic-cable network that is up for sale,
> "but if we were to step up [to buy], it would be with great caution. We
> are fairly rigorous."
>
> Any purchase price would have to meet Disney's steep goals for return on
> invested capital and not strain its financial balance sheet. Also,
> Disney would have to see a clear path on how its skills would
> significantly grow the network, and Disney wants a focused cable brand,
> as opposed to a general-entertainment basic-cable network.
>
> Those comments did not point to any great enthusiasm for The Weather
> Channel, which is currently up for auction with forecasts of a $3
> billion-$5 billion purchase price. Its name did not come up.
>
> There's little Disney interest in buying more TV stations to augment
> ABC, given that broadcast-TV growth prospects are cloudy and its
> existing 10 owned-and-operated stations are "solid," Iger said, adding
> that Disney won't be a seller, either.
>
> He said Disney is committed to broadcasting because it can generate
> decent profits from program creation -- the affiliated business of
> TV-program production that creates intellection property. "If we were
> not in the studio business in this day and age, it would be pretty
> challenging" being in the broadcast-network business, he added.
>
>
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