To: anthony karpati who wrote (2280 ) 7/21/1998 4:03:00 PM From: art slott Read Replies (1) | Respond to of 4748
Tony, all, here is some really good news. Weekly Edition for July 20, 1998: ESPN Drops Plans for Regional Service By R. THOMAS UMSTEAD In a stunning about-face for The Walt Disney Co., the company has scrapped plans for an ESPN West regional-sports service that would have been anchored by its Anaheim Mighty Ducks National Hockey League and Anaheim Angels Major League Baseball teams. Instead, the teams have signed long-term television agreements for both teams with rival Fox Sports West. The surprising move -- spurred by fears that few operators would distribute ESPN West -- signals a major retreat from ESPN's plans to battle Fox Sports Net. ESPN had planned to launch the new service in October to compete directly with Fox Sports West and Fox Sports West 2. The network had secured the rights to the Ducks this season and the Angels next season from Fox Sports as part of a legal settlement earlier this year and, with ESPN as a backdrop service, it expected operators to launch ESPN West aggressively. But ESPN pulled the plug last week, after both teams expressed concerns that the network would not be able gain adequate distribution, thereby limiting the teams' fan exposure, sources close to the situation said. As a result, Anaheim Sports, which represents both teams, decided to enter into a 10-year deal with Fox Sports. A statement from ESPN said that while ESPN West would have been "a top-quality service ... we respect the teams' interest in having immediate access to the largest possible distribution, for their benefit and that of their fans." Representatives from the teams could not be reached for comment at press time. "I'm sure that distribution was becoming a problem," said Kitty Cohen, vice president and general manager of Fox Sports West. While ESPN West had reached deals with direct-broadcast satellite services DirecTv Inc. and EchoStar Communications Corp.'s Dish Network, it has little success with cable operators. ESPN West, which was asking for 50 cents per subscriber, faced an uphill battle with operators that had limited channel capacity and that were still smarting over the network's national 20 percent rate increase. Further, ESPN discouraged operators from putting ESPN West on digital tiers by charging them $1.50 per subscriber if they did so. "I'm thrilled; Christmas came early to Southern California cable operators," said one operator who wished to remain anonymous. "We're concerned about the costs for two regional-sports services; we couldn't justify paying for a third sports service." ESPN insisted that it will "continue to consider regional opportunities, if they make good business sense," but analysts were skeptical. "They're free to bid for [team] rights, but if they couldn't do it in Los Angeles, where they own two teams, where are they going to do it?" asked John Mansell, sports analyst for Paul Kagan Associates Inc. Home | MCN Weekly | Broadband Week All contents c1998 Cahners Business Information. All rights reserved. Multichannel News is a registered trademark of Cahners Business Information. Last Updated: 07/21/98 10:43 AM Top Stories LEVIN DIALS LONG-DISTANCE ESPN Drops Plans for Regional Service USA's Diller Eyes Bigger Fish Debate Over DBS Network Signals Continues DirecTv Readies Melting Pot of Nets Gemstar Rejects UVSG Bid SBCA to Kick Off Certification Program Analysts: AT&T Tweaking Terms Calif. May Bar Web Taxes McCain Vents Over 'Fire-Wire' Conflict