Starwave Corp., producers of such sports Web sites as ESPNET
SportsZone, NBA.Com, NASCAR Online and Ticketmaster Online, was
profiled in this morning's N.Y. TIMES as "a bellwether, an
ambitious venture whose early progress suggests how the [online]
medium will develop and perhaps become a business." While
Starwave would not release financial figures, sources report
SportsZone now has nearly 40,000 subscribers paying $4.95 a month
or $39.95 a year. Industry execs estimate that SportsZone
generates 80% or so or Starwave's revenue, which should be $7M
per year if current growth rates hold. Starwave President Mike
Slade reports the plan is to take the company public, although
there is no timetable (Steve Lohr, N.Y. TIMES, 6/17).
GOLF'S TANGLED WEB: GOLFWORLD's "Bunker to Bunker" reports
the PGA of America has taken the position that it controls the
Internet rights to the PGA Championship and can sell them to one
agency for "exclusive" online coverage. Under the PGA of
America's deal with IBM, access will not be denied to other
online organizations, but as a requirement for being
credentialed, the PGA is asking those groups to sign a waiver
promising not to transmit reports "until that day's live play has
been finished." In response, the AP had considered a boycott,
but has since "softened that stance." According to GOLFWORLD,
the controversy raises the issue of whether the internet media
should be classified as electronic or print (GOLFWORLD, 6/14
issue).
