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MAGIC PROFITS "SOAR" AS TEAM BRING TV IN-HOUSE
Published May 3, 1995
The Magic Television Network, the in-house production arm that broadcasts nearly all of the team's away games, is "boosting the team's bottom line," according to Gene Yasuda in this morning's ORLANDO SENTINEL. Magic TV revenue "has soared 172% from three years ago and "now accounts for 10% of the Orlando Magic Ltd.'s overall revenue." With the NBA's growing popularity, NBA teams are "cashing in" on TV revenues by bringing TV operations in-house. In fact, more than half of the NBA teams "independently produce and help broadcast at least some of their games." Magic Dir of Broadcasting John Cook: "Not only does it allow us to control our commercial rates, we can also promote the FanAttic store if we want to." The team develops programming and the Magic Network debuted two programs this year, a 30-minute pre-game show, and a weekly Magic Magazine. These shows give the team "additional opportunity to sell commercial slots," and rates for spots commercials have increased by 60% as ratings for the Magic road games have "nearly tripled" over the past three years. But in-house broadcasting is not for every team, as franchises "that aren't doing well" have left the work to the broadcasters. Bullets Dir of PR Matt Williams: "With a rights fee, you get a lump check and have nothing to worry about. When you bring it in-house, you're on the line to sell the product" (ORLANDO SENTINEL, 5/2).