The cable television bubble will likely burst soon. The question is of what exactly will be the thing to burst it. What property will drive cable rates up so high in a market that people just won’t take it anymore?
I don’t know about you, but I’ve got my money on the Los Angeles Clippers.
According to the LA Times, Fox execs had already begun speaking with potential suitors to buy the team (presumably including now seemingly assured buyer Steve Ballmer) from the disgraced Donald Sterling. The team’s deal with Prime Ticket in LA runs out after 2015-16. With the team’s new high profile, it would seem now is the perfect time to cash in.
The question, of course, is whether or not Time Warner is a legitimate competitor. Some might see the Dodgers new network as the perfect spot for a winter sports franchise, but the team controls all programming decisions and owner Stan Kasten has said that there are no plans to have any other tenants. That would seem even more likely after his partners at Guggenheim were shut out from buying the Clippers.
So… another network? What exactly can Time Warner offer the Clippers? Maybe Comcast tries to buy in? It’s not exactly certain what will happen to Los Angeles’ second basketball franchise other than just re-upping for big money at Fox.
It’ll be interesting to see, regardless. The Anaheim Ducks’ TV deal is actually up this season, and I’m sure Fox will want to keep them around. If Fox can keep both the Ducks and Clippers (they currently have long-term deals with the Kings and Angels), they’ll be able to justify charging cable companies for both of their local networks, Fox Sports West and Prime Ticket.
If one were to leave for Time Warner, however… you might start to see the Dodgers make a little more headway within the market, finally.
[LA Times]
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