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MSO'S HAVE HIGH HOPES FOR ESPNEWS; WHAT BECOMES OF NEWSPORT?

     Several cable operators have reacted positively to the
announcement of ESPNEWS, noting it will "give them choice and a
strong product backed by the ESPN brand," according to Will
Workman of CABLE WORLD.  One top 10 MSO programming head said
ESPNews "is the engine that's going to drive ESPN2 beyond the
retransmission threshold.  Right now, many operators bristle at
carrying [ESPN2] above the retransmission threshold because
there's no reward.  What this allows ESPN to do is give rate
benefits on ESPN2 without violating [most favored network]
language in their ESPN2 contract."  The exec said ESPN has
floated a deal that "would grant increasing discounts based on
the degree to which he carries ESPNews and ESPN2 and puts them in
channel position next to ESPN's.  With that, ESPN has "come out
of the gate with a better package" than the planned CNN/SI. The
cable exec predicts, while it will be slow going for CNN/SI at
first, they "can make it" -- but he believes NewSport "goes away"
(CABLE WORLD, 6/17 issue).  Wayne Walley of ELECTRONIC MEDIA
notes that NewSport, with its nine million subscribers, is
expected to unveil plans to "reposition" itself by adding more
regionals and local news to its lineup (ELECTRONIC MEDIA, 6/17
issue).

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