Saturday, September 16, 2006

Hidden Dollars

Both these articles are several month old. The intentions was to comment on these two stories but they got left behind. The point of interest for each is the light that they shed on the money in the cable business.

Dolan's Magic Kingdom In Danger of CrumblingThe Business of Sport

The Dolans, who own the MSG Network and are partners in FOX Sports New York, collect about $4 each for somewhere between 3.8 and 4.5 million subscribers for both services, which means cable subscribers, whether they watch either channel or not, are paying more than $180 million a year in revenue for the channels. TV and government assistance help make the Knicks a lucrative business,which makes Dolan a lot of money.

Industry sources said that CSTV would command about 15 cents per month per subscriber from a cable company. Multiply that by one million, and that would cost a cable company an additional $150,000 per month if the channel is offered to all subscribers.


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