jungleg
3rd April 2004, 12:01.52 PM
NTRA’s Smith urges “win-win” from TVG, Magna
National Thoroughbred Racing Association Commissioner Tim Smith said Friday that he hoped Television Games Network and Magna Entertainment Corp. would settle their face-off over competing simulcast-wagering signals.
After speaking to the joint conference of the North American Pari-Mutuel Regulators Association and the Association of Racing Commissioners International in New Orleans on Friday, Smith said he regularly urges the two publicly traded companies to find an accommodation.
"I want them to find a way to have a win-win situation," he said. "TVG has a huge built-in advantage with its distribution, and Magna Entertainment has outstanding content, especially in the winter."
Smith conceded that the companies would need to modify parts of their respective business plans, which call for exclusive programming signals. Magna owns some of the highest quality racing in the winter months, from Gulfstream Park and Santa Anita Park.
TVG’s signal, including races from New York Racing Association and Churchill Downs Inc. tracks, is distributed by cable and satellite networks. Magna’s HorseRacingTV show is seen on HDTV, a small but well-financed startup of Mark Cuban, the boisterous owner of the Dallas Mavericks professional basketball team.
Smith said the split signals send a bad message to racing bettors. "It’s a real sore point with our customers," he said. "We’re making it as difficult for the player to gamble as we can possibly make it."
"It’s for the two companies to work out, but there’s a public interest involved," Smith said. He cited the example of the Golf Channel, now a prospering cable-television station.
At one time in its history, he said, the Golf Channel was in danger of closing, even though it had no competition in that niche. Two companies competing for a relatively small slice of Thoroughbred business could be damaging to the sport.
"If the split persists too long, I fear we will lose our chance to have our own version of the Golf Channel," he said. "You get only one shot to get into the house."
Smith said a TVG-Magna accommodation—a step urged by Wall Street analysts covering both companies--would lead toward the next obvious step, a merger of all advance-deposit wagering operations into one product. Currently, states such as Pennsylvania and California have their own phone-wagering systems, and Wyoming soon will be launching one.
"They are duplicating back-office functions, which is expensive, and TV production, which is even more expensive. And, they’re duplicating sales and other functions. It’s truly lose-lose, and it decreases revenues," he said.–Don Clippinger
National Thoroughbred Racing Association Commissioner Tim Smith said Friday that he hoped Television Games Network and Magna Entertainment Corp. would settle their face-off over competing simulcast-wagering signals.
After speaking to the joint conference of the North American Pari-Mutuel Regulators Association and the Association of Racing Commissioners International in New Orleans on Friday, Smith said he regularly urges the two publicly traded companies to find an accommodation.
"I want them to find a way to have a win-win situation," he said. "TVG has a huge built-in advantage with its distribution, and Magna Entertainment has outstanding content, especially in the winter."
Smith conceded that the companies would need to modify parts of their respective business plans, which call for exclusive programming signals. Magna owns some of the highest quality racing in the winter months, from Gulfstream Park and Santa Anita Park.
TVG’s signal, including races from New York Racing Association and Churchill Downs Inc. tracks, is distributed by cable and satellite networks. Magna’s HorseRacingTV show is seen on HDTV, a small but well-financed startup of Mark Cuban, the boisterous owner of the Dallas Mavericks professional basketball team.
Smith said the split signals send a bad message to racing bettors. "It’s a real sore point with our customers," he said. "We’re making it as difficult for the player to gamble as we can possibly make it."
"It’s for the two companies to work out, but there’s a public interest involved," Smith said. He cited the example of the Golf Channel, now a prospering cable-television station.
At one time in its history, he said, the Golf Channel was in danger of closing, even though it had no competition in that niche. Two companies competing for a relatively small slice of Thoroughbred business could be damaging to the sport.
"If the split persists too long, I fear we will lose our chance to have our own version of the Golf Channel," he said. "You get only one shot to get into the house."
Smith said a TVG-Magna accommodation—a step urged by Wall Street analysts covering both companies--would lead toward the next obvious step, a merger of all advance-deposit wagering operations into one product. Currently, states such as Pennsylvania and California have their own phone-wagering systems, and Wyoming soon will be launching one.
"They are duplicating back-office functions, which is expensive, and TV production, which is even more expensive. And, they’re duplicating sales and other functions. It’s truly lose-lose, and it decreases revenues," he said.–Don Clippinger