Originally Posted by Lip Man 1
Just a few thoughts:
Regarding KBA's question about what the CEO means in certain aspects. My sense is the guy is saying that every single agreement with every single cable and satellite provider has to be renegotiated if WGN / WGN America / Tribune Company makes severe changes to their programming. That could impact where they are placed on systems and what can be charged...therefore every deal has to be redone from the ground up.
I'm not saying this is the case for the majority of operations but just as an example. Cable company in Iowa says, "if you aren't going to carry Chicago sports anymore, we aren't paying X per subscriber to you, if you want us to carry you in the future we'll pay only X..." So Tribune has to work out a new agreement with that company.
One other thought, I won't get into it in detail because I don't want to get into trouble. I found it interesting that the Tribune CEO says, Chicago sports only makes a "250,000" profit per year.
So screw sports fans (not just Chicago sports fans) around the country because a "250,000 profit" a year isn't enough.
We'll see what happens in the future.
A CEO's job is to maximize profits and ROI for the shareholders. When you have cable stations making 9-10 figures and you are making only six, you have a lot of explaining to do. Just because you like something, it doesn't mean the majority of the viewers do. The majority of the country doesn't care about watching Chicago sports and programming. It's also doesn't generate the revenue other cable stations are getting. It's the reality of life, whether you like or not. And, this is coming from someone who will be the first one to tell you about corporate greed and not a fan of senior management in general.