magna churchill hrtv merger

[andicap]

I'll be contributing to a newspaper story on this (a cable TV trade pub) and I'm on the conference call now. Anyone want to suggest a question or two?

[rrbauer]

I'll be contributing to a newspaper story on this (a cable TV trade pub) and I'm on the conference call now. Anyone want to suggest a question or two?

Yes. How do they plan to expand distribution from a promotional perspective? It's one thing to announce that they are going to make content available for this, that and the other thing....entirely different proposition to make it happen.

[JimG]

How do they plan to disseminate their signal to the widest possible audience? Or are they planning to keep all their tracks on one channel (HRTV), which is unavailable to a large segment of the wagering population? What are they doing to increase their exposure on various cable outlets. No real additions have been announced since 2005.

Jim

[BIG49010]

Will Churchill, Calder and Arlington be available on http://www.rtn.tv/

[JimG]

Reading the press release, it sure appears to even the playing field with respect to horse racing on tv. I just wish tvg and hrtv were available on directv and all cable companies where gambling on horses is legal.

Whoever Nyra goes with long term could tip the balance in favor of HRTV. Right now the nyra tracks are keeping the playing field level with their broadcast on tvg.

Jim

[rrbauer]

Whoever Nyra goes with long term could tip the balance in favor of HRTV. Right now the nyra tracks are keeping the playing field level with their broadcast on tvg.

Jim

AQU Inner track = Gulfstream + Santa Anita

Is this some new math that I missed out on?

:lol: :lol: :lol:

[JimG]

AQU Inner track = Gulfstream + Santa Anita

Is this some new math that I missed out on?

:lol: :lol: :lol:

Now Richard,

I was looking at the entire year. HRTV has always been better in the winter. TVG the rest of the year. When you factor in Keeneland, Belmont, Saratoga, Del Mar, Oak Tree at SA, and Monmouth TVG is still strong. You take away Belmont and Saratoga and HRTV will have a huge edge.

Jim

PS...I have no idea what math skills you may have, but your smarta$$ skills are top notch. ;)

[andicap]

I did an analysis on the exclusivity at the MAJOR tracks, and while HRTV is catching up in numbers, it will still have nowhere near the quality of TVG which will still carry MUCH more handle than HRTV's tracks.
I didn't count Turf Paradise in TVG's corner because it's not a major track.

By the way look for rumors/speculation of merger talks between the companies to heat up. Doubt there is room for two companies in this niche arena. Of course even if they merge they would still need to find two channels on each cable system BUT the economies of scale would be huge and as a bigger unified company they could cut better deals all around.

For those of you who say exclusive contracts are anti-consumer I would say, why would the horse racing business not be considered part of the capitalist world? Those of you who would move to Greenland before living in a Socialist country should understand that. You COULD say merging the channels would be anti-competitive as there would be a single entity offering its business to the distributors (satellite/cable operators) who would not be able to play each rival off of one another and get the best deal for its customers.


As of Summer 2007By the following year, add Calder and Arlington to HRTV

HRTV


* Churchill Downs – Kentucky
* Gulfstream Park – southern Florida – winter early spring only
* Louisana circuit:
Fair Grounds after spring 2007 – CD owns

** Maryland Circuit
Laurel Race Course
Pimlico
Hawthorne Racetrack in Chicago
Santa Anita (winter only)
Golden Gate


TVG


* All of NYRA
* Most of southern Calif. circuit including :
Hollywood Park
Santa Anita (fall, the Oak Tree meet,)
Del Mar --
* Most of Kentucky circuit including

Keeneland Race Course
Turfway Park
Ellis Park

*New Jersey circuit
--Monmouth Racetrack
--The Meadowlands

Arlington Park ***
Calder Race Course ***

[garyoz]

By the way look for rumors/speculation of merger talks between the companies to heat up. Doubt there is room for two companies in this niche arena. Of course even if they merge they would still need to find two channels on each cable system BUT the economies of scale would be huge and as a bigger unified company they could cut better deals all around.




I don't see where there are economies in Internet Account wagering. Seems to me that the minimal optimal scale required supports multiple businesses. Where would significant costs savings occur in a merger and what would be the motivation to merge? It is not like there is a rebate war between TVG and XpressBet.

I think the HRTV/CDSN partnerships and the new company indicates that a merger is far less likely. The key is getting clearance for video distribution on cable systems for two channels. That's the bottleneck. What could possibly motivate TVG to partner with the new Magna/CDSN company? They had to anticiapte this when they kicked CDSN out.

[Indulto]

http://www.courier-journal.com/apps/pbcs.dll/article?AID=/20070305/BUSINESS/70305011 (http://www.courier-journal.com/apps/pbcs.dll/article?AID=/20070305/BUSINESS/70305011)

Churchill to partner with Magna
By Gregory A. Hall

…In a news conference, Magna and Churchill officials said they believe their joint efforts could lead to an increase in the money bet on racing.

…“It shouldn’t be any surprise that in the no-growth environment everyone struggles to stay financially afloat. Collectively, the racetracks don’t make money. Neither, collectively, do our horsemen. And as a racetrack operator and a breeder I deal with this challenge from both perspectives every day. … One percent real growth isn’t going to pay anyone’s bills in the decade ahead.”Seems to me just getting a greater piece of their current handle would justify CD’s actions, particularly if they really believe they can grow handle through superior programming.

The question now is how much longer before the New York Racing Franchise is brought into the fold, especially if the NYRA should no longer be the decision maker. If Empire to get control, watch for TVG to start merger talks immediately.

BTW aren’t you glad to learn that your wagering records at CD tracks are about to be analyzed in combination with your wagers at MEC tracks? :jump:

[NY BRED]

seems to me HRTV could cut a deal with cablevision to add their
station as they once did on dish network.

Then again that would be an easy fix and with Stronach ego is way
more important than meeting the concerns of fans..

Ultimately this could be another sirius vs xm where no one wins

(except for Howard Stern)

[rrbauer]

By the way look for rumors/speculation of merger talks between the companies to heat up. Doubt there is room for two companies in this niche arena. Of course even if they merge they would still need to find two channels on each cable system BUT the economies of scale would be huge and as a bigger unified company they could cut better deals all around.


I don't see this from either an account-wagering company perspective or from a television distribution one.

First, with Magna and CD both having account-wagering companies they are in a position to "cream" their respective racing venues and there are plenty of other account-wagering companies besides TVG that they can do sub-license deals with. As the members of the marketplace become aware that their exclusive deal with TVG is costing them distribution opportunities they will rethink what exclusivity is getting them.

On the TV side, as TVG's exclusives expire, those tracks become candidates to open up their distribution by going non-exclusive (like Tampa Bay does). Since TVG is a little pimple on Rupert's ass and only staying in business by virtue of the subsidy from News Corp, if NC really wanted to maximize profits where TVG is concerned they would just shut it down. And, while TVG currently enjoys some exclusives in Calif, look for that to change at the end of this year when the whole account-wagering process comes under CHRB review. The CHRB and TOC both want to expand the number of firms doing business as account-wagering providers in Calif and that can only happen by stopping the exclusives and opening the market to all comers who otherwise qualify.

[Kelso]

For those of you who say exclusive contracts are anti-consumer I would say, why would the horse racing business not be considered part of the capitalist world?



The feds busted up the vertically integrated motion picture production/distribution companies a long time ago.

Not saying it was the right thing to do ... in fact, I think it was probably wrong. However, combining tracks with signal distribution with wagering services seems to me like dancing on that antitrust grave. Wonder if something this substantial will grab the feds' attention.

(Thank you for the TVG/HRTV analysis, Andi. Very interesting and complete.)

[garyoz]

The feds busted up the vertically integrated motion picture production/distribution companies a long time ago.


U.S. v. Paramount Pictures (1948) is very much different than this. The tracks are selling rights to the content they produce much like any other sports team or league. No antitrust issue. I hope HRTV and TVG both succeed. Problem is getting the clearance on the broadband video distribution networks (e.g., cable TV) . Ultimately, it will all migrate to the Internet anyway.

I'm more interested in what if anything this says about anticipating the NYRA situation.

[boomman]

[QUOTE=Kelso]The feds busted up the vertically integrated motion picture production/distribution companies a long time ago.

Not saying it was the right thing to do ... in fact, I think it was probably wrong. However, combining tracks with signal distribution with wagering services seems to me like dancing on that antitrust grave. Wonder if something this substantial will grab the feds' attention.

Kelso: Certainly seems like there is a conflict there somewhere for sure! Wouldn't be at all surprised to see this one "come under a microscope".

Boom

[Indulto]

Wonder where we would wager if all tracks associated with the same ADW decided to increase takeout? Does Ma MEC/CDI ring a bell or is that just an Empire State of Mind? ;)

[samyn on the green]

Isn't it about time TVG would makes the most of its strength and locate a on-site host at Aqueduct/Belmont/Saratoga on a daily basis. NYRA is keeping TVG viable with its most desired content. The NYRA circuit is the premier signal in the states and TVG does not offer promote it like other tracks on its roster. Why can't NYRA get the full coverage that Los Alamitos/Hollywodd/Oak Tree/Meadowlands recieves. All of those tracks have a on-site capper interviewing trainers/jocks/drivers on a daily basis. At NYRA all we get are the studio hosts with their canned pick 4's and zero physicality capping or on-site coverage.

The coverage the HRTV produces of Santa Anita on a daily basis blows away anything TVG has ever done.