Magna TV Channel

[andicap]

press release today from Magna

A ENTERTAINMENT LAUNCHES HORSERACING TV™,
NEW IN-HOME “WATCH AND WAGER” OPTION FOR
CABLE SUBSCRIBERS


January 8, 2003, Aurora, Ontario… Magna Entertainment Corp. ("MEC") (NASDAQ: MIEC; TSX: MIE.A), North America’s number one owner and operator of thoroughbred racetracks, today announced the launch of HorseRacing TV™ (“HRTV”), a new 24-hour cable television network providing exclusive live thoroughbred, harness and quarter horse racing action from racetracks in the United States and Canada.

The network provides a new guaranteed revenue option for cable system operators. It delivers wire-to-wire coverage of live horse racing from more than 70 racetracks, along with post parades, odds and race results for up to 15 hours per day. The remainder of the program schedule includes replays and educational programming related to the sport of horse racing.

HRTV will feature exclusive television coverage of 13 racetracks owned, operated or managed by MEC, and will have access to live coverage from more than 60 other racetracks in North America. All live racing content on HRTV will be available for wagering, where permitted by law, via the phone or Internet through XpressBet™ (www.xpressbet.com), MEC's national account wagering system.

MEC's racetracks include some of the most prestigious names in horseracing, including Santa Anita Park, Golden Gate Fields and Bay Meadows Racecourse in California, Gulfstream Park in Florida, Lone Star Park at Grand Prairie in Texas, Pimlico Race Course (home of The Preakness®) and Laurel Park in Maryland, and The Meadows in Pittsburgh. Additional racetracks owned, operated or managed by MEC include Remington Park in Oklahoma, Thistledown in Ohio, Great Lakes Downs in Michigan, Portland Meadows in Oregon, and Colonial Downs in Virginia.

HRTV will be available to cable operators as a free basic service. The network will offer guaranteed per-subscriber carriage fees to operators in 34 states where XpressBet™ accepts in-home wagers, MEC owns, operates or manages racetracks, and/or horse racing television coverage is strategically important. HRTV has secured initial launches in San Diego, where it is being offered on Time Warner Cable’s digital tier, and in Pittsburgh and Western Pennsylvania, where it has become the successor to the Meadows Racing Network in more than 900,000 analog homes. HRTV also has reached an agreement with the National Cable Television Cooperative (NCTC), which represents cable system operators serving more than 14.5 million subscribers nationally.

“It has always been part of MEC’s strategy to support the growth of our racing and wagering operations with the broadest possible television distribution of live horse racing,“ said Jim McAlpine, President and CEO of Magna Entertainment Corp. “HorseRacing TV™ provides exclusive television coverage to some of the best racing in North America. We are delighted to bring the thrill and excitement of horse racing to new audiences.”

“HRTV is unique in its ability to offer a new guaranteed revenue source for cable operators who are struggling with the increasingly high costs of live sports programming,” said Bill Bridgen, President of HorseRacing TV™. “Our reverse business model enables operators to provide one of television’s most important commodities – an exclusive, live sports product – while actually lowering overall programming costs.”

Bridgen, who joined HRTV as President in January, 2002, previously served in various sports media capacities, including Vice President, Affiliate Relations with Fox Sports Net/Fox Cable Networks; Vice President of Business Development for Headline Media Group, Inc.; and a member of the Board of Directors of Season Ticket Solutions, Inc. HRTV has also secured the services of former Golf Channel, Prime Sports and SportsChannel executive Jim Bates.

Amy Zimmerman, an Eclipse, Emmy and two-time International Simulcast award winner, produces HRTV programming from the network’s new studio at Santa Anita Park. Insight and analysis are provided by a team of eight on-air personalities. Kurt Hoover and Jon White, co-hosts of the longtime “Santa Anita Live” program, will host HRTV. They are joined by Peter Lurie, Laffit Pincay III, Randy Sparage, Jeff Siegel, Millie Ball and John DeSantis.

“Because of MEC’s active involvement in many levels of racing, HRTV is mindful of the obligation to present the sport in the most professional manner,” said Bridgen. “We believe that our access to exclusive racing coverage and our knowledgeable, personable broadcast team will combine to provide a compelling viewing experience for all racing enthusiasts, from the casual fan to the serious handicapper.”

[BillW]

Fox Sports Pittsburgh has been carrying a simulcast of this (their typical simulcast slot of Ladbroke /Meadows etc. racing network).

Bill

[ranchwest]

BillW,

That's interesting because through Dish Network you can order all of the Fox Sports regionals as a package.

[BillW]

Originally posted by ranchwest
BillW,

That's interesting because through Dish Network you can order all of the Fox Sports regionals as a package.

Yep, that's where I saw it. The coverage is light though. Usually 6 to 9 hours a week, but it gives you a flavor of what they are doing. Looks quite a bit like the Meadows Racing network at this time, although I'm sure it will evolve as they get established.

Look for it at the noon to 3PM (CST) timeslot Mon/Tue/Thu/Fri. (schedule varies).

Bill

[Speed Figure]

No Hollywood/Del Mar/Arlington/Churchill Downs/Aqueduct/Belmont/Saratoga/Calder/Keeneland/Hoosier Park.

I'll stay with TVG when the winter is over so is HRTV.:p

[so.cal.fan]

It sounds good.......but where in the Hell do you find it?
No one I know can access it.

[andicap]

Read the press release. Only in limited distribution right now.
I doubt they will get satellite carriage since News Corp co owns TVG and will make a run at DirecTv and EchoStar already has TVG.

Not sure how many operators will pick it up.

[smf]

SCF,

I'm sure that one of the channels at LS (simo) was tuned into HRTV last weekend. Had their screen split into quadrants and zoomed in on a track when their race went off. Only watched it for a coupla minutes before switching back to FG.

I'm sure they'll do some fine tuning to it.

[so.cal.fan]

Hey, I wish them luck, but we haven't seen "hide nor hair" of this channel anywhere around Sierra Madre or Arcadia, and my son says he can't access it in Long Beach.......
I don't really care for myself, because I am at Santa Anita to watch the races there, but they really shouldn't be touting it to everyone when they can't deliver.
Maybe they don't care if we can't watch it here in So. Cal.
I understand it can't be had in San Diego County either.
All you out of state fans.....let us know how you like it!

[BillW]

Horse Racing is on the Fox Sports Pittsburgh schedule tomorrow (1/9) 12:00 - 3:00 CST. ... for those of you who have the dish, and are curious.

Bill

[andicap]

The channel is on Time Warner Cable in San Diego, but you have to buy the digital tier. Probably an extra $10-$15 a month.

Also, if you used to get the old Meadows Racing Network in western Pa., you now get the channel.

[MikeDee]

I'm going to send a email to my cable opertor and tell them I want it added to my cable line up. If everyone would do the same perhaps the major cable companies will pick start carrying it.

Andicap - do you have a link for the press release?

[andicap]

No link for the press release, but here's the story I wrote in the Hollywood Reporter


Magna racing channel hoofs it


Jan. 09, 2003



NEW YORK -- Time Warner Cable in San Diego has launched a "test" of a new horse racing channel called Magna Entertainment HorseRacing TV that means to give Gemstar/TV Guide's Television Games Network a run for its money.

At the same time, cable systems in western Pennsylvania are also carrying the channel, HRTV for short. It's a 24-cable service that will show live thoroughbred, harness, and quarter horse racing.

Magna, chaired by Canadian auto parts magnate Frank Stronach, owns or operates 13 racetracks in the U.S., and observers see this effort as a way to expand exposure to the company's online or telephone ExpressBet wagering service.

What makes this a unique situation is that HRTV is paying cable operators a monthly guarantee fee as an incentive to give the network a try. Sources familiar with the contract said that operators get paid in two ways: The Ontario-based Magna provides them with an undisclosed cut of every dollar that is bet through ExpressBet; and for a limited time, Magna will pay them a few cents each month for each subscriber the operator provides, as a hedge against a possible lack of wagering in the operator's area.

Gemstar's TVG service also takes bets online and over the phone, and also provides operators with rebates based on betting action. But it is unusual for cash-started cable companies to receive carriage fees on a digital service. Carriage fees in the form of one-time payments ranging from a few dollars to $11 have been common in the industry for the past few years as a way to induce operators to launch networks on old-fashioned analog tiers.

"If you're going manage valuable reserve bandwidth, you need to work in the mix things that will help you make money with it," said Scott Abbott, vp programming, national accounts for the National Cable Television Cooperative, which negotiates contracts for small and independent operators.

NCTC has signed a deal with Magna that gives members access to the channel if they want to launch the service.

In San Diego, HRTV debuted on a digital cable tier in late December while operators in Pennsylvania substituted the network for the defunct Meadows horse racing channel on analog on Jan. 1.

TVG has found space on only a handful of cable systems in southern California, Maryland and Kentucky, as well as on the Dish Network. Observers say Gemstar's problems with its interactive TV Guide Channel -- especially the recent legal setbacks concerning its patents -- have hamstrung TVG as the two services are connected in most operators' minds.

Sources close to TVG say the network is doing better after losing millions of dollars for Gemstar for the first few years. New legislation in California has enabled the company to reap millions in new revenues in that huge market and sources say TVG is on the verge of breaking even on a cash-flow basis.

TVG has one advantage over HRTV: It has an exclusive deals for racing in two of the most popular betting venues in the country: New York, home of Saratoga Race Course; and in most of Kentucky, home of Churchill Downs.

"Magna perceives television to be critical to growing interest in the sport," said Bill Bridgen, president of HorseRacing TV and a former executive at Fox Sports Net. "The ultimate objective is to allow horse racing fans to bet using a remote control at home."

Gemstar's TVG also has high hopes for an interactive in-home wagering component, but for now only TVG customers at one operator, Insight Communications in Louisville, KY, can bet that way.

HRTV is part of the one-year-old Racetrack Network that Magna offers as a private satellite service. Racing fans can pay $300 for the hardware and $100 a month to receive eight channels of live feeds from tracks all over the nation.

Some observers feel TVG's top-tier tracks give it a huge edge over HRTV. Magna owns the two top winter tracks, Gulfstream Park in Florida, and Santa Anita in California, but horseplayers consider its other tracks to be a cut below those TVG offers.

"The only top tier tracks Magna operates race in January, February, March, and April," said Ray Paulick, editor-in-chief of the Blood-Horse, a racing trade publication.

Mark Wilson, the president of TVG, declined to comment on the competitor, other than to say, "We welcome the competition; competition always makes you sharper. We think we have a superior product and we'll see what happens in the future."

Paulick said he doubts there are room for two horse racing services, but Magna and TVG have been unable to reach any sharing agreements. That means TVG customers cannot bet Santa Anita and Gulfstream this winter and Magna's subscribers will continue to be shut out of New York and Kentucky.

Pointing to the added digital capacity on many cable systems, HRTV's Bridgen disagreed with Paulick, saying, "One network cannot cover the entire country. I think there's room for two for sure. "

He added, "We're paying them instead of them paying us. That will overcome a lot of concern that bandwidth is being used profitably

[Alc]

I contacted bill.bridgen@hr.tv and he requested that I contact my local provider to assist HRTV in promoting its product. I mailed a letter to the local Time Warner program director.

[andicap]

Letters to your cable provider can only help, but the biggest factor as to whether Time Warner and others will launch these channels is how they do in their test runs.
If TW makes decent with it in San Diego, they will try it elsewhere.

[rrbauer]

Fox Sports Pittsburgh is Channel 428 on the Dish Network.
If you have the Top 150 package from Dish you should be able to get that channel.