TCI's recent deal with ESPN was examined by John
Dempsey of VARIETY who writes TCI "is telling everybody in
the industry that it struck a win/win deal ... But some
cable operators who have sounded out ESPN since the
announcement of the Disney deal say that in order to get a
10-year commitment to ESPN and ESPN2, TCI agreed to pay big
increases in subscriber license fees." One program exec for
a Multisystem Operator (MSO): "I'm going to have to pay 10%
a year over and above the $0.80 a month I already pay [to
ESPN for each subscriber]. ... In effect, TCI is setting
ESPN's rate card for the rest of the cable industry."
Dempsey writes that "most" cable operators, "buried in debt,
are one step away from doctor-assisted suicide." Patty
McCaskill, VP/Programming & PPV/Charter Communications, the
U.S.'s 13th-largest MSO: "ESPN is negotiating from a
position of incredible strength. We'd have a customer
revolt on our hands if we were forced to drop it." Both TCI
and Disney officials declined to comment on the details of
the carriage agreement (VARIETY, 4/21). MSO programming
heads say their "worst fear" is that "they'll be pressured
into loading up ESPN's gun as it prepares for a bidding war
shootout over NFL rights." But ESPN execs "privately
counter that MSOs must look more carefully at the local
avails revenue the sports service brings in" (CABLE WORLD,
4/21 issue).