Knicks Owner James Dolan Addresses Future of MSG Network
While the New York Knicks were winning games in the fourth quarter, Sphere Entertainment, the entertainment and media company behind MSG Networks, was losing during a similar period.
Addressing a drop in cable subscribers for the team's television home, Knicks owner and Sphere Entertainment Chairman/CEO James Dolan assured investors that the drop in subscriptions isn't anything that the company should worry about.
"There's been no lack of interest in sports," Dolan said at the Sphere Entertainment Q4 earnings meeting transcript compiled by SeekingAlpha.com. "Sports continues to grow and has great appeal to the consumer in the marketplace, particularly in New York. What's going on with this business, when you take a look at things like Diamond Sports, is that the monetization mechanisms that harvest that interest are basically broken."
Dolan explained that he's addressed the issue before, but doesn't believe that too many changes need to be made.
"Underlying all of this is the public thirst and interest for live sports and that has not diminished at all," Dolan said. "The mechanism monetizing might not be in such great shape, but the public's interest is. I think we can regain the business."
Dolan and Sphere Entertainment launched MSG+ in late June for $29.99 a month or $309.99 for a full year. This subscription allows consumers to stream all Knicks, New York Rangers, New York Islanders, New Jersey Devils, and Buffalo Sabres games. However, if a consumer doesn't want to buy the monthly/yearly deal, it's $9.99 per game. Content broadcast on MSG and MSG SportsNet is also included.
The opening of the expensive Sphere at The Venetian Resort, a $2.3 billion entertainment venue, in Las Vegas could be a reason for the high prices. Already making headlines for its exterior circular wall capable of projecting images through 1.2 million LED light pucks, The Sphere is set to open next month with the debut of an extended concert series from rock band U2, which will run through December.
“We didn’t anticipate spending $2.3 billion (on it), we also didn’t anticipate COVID,” Doland said. “The business is really built on the notion of changing the model that is currently used to operate entertainment venues.”
Though the Knicks have gained increased attention from the NBA's national television partners, 57 games are slated to appear on MSG Network this season.
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