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POSITIVE SYNERGY? ESPN BRAND MAY BECOME MORE VISIBLE ON ABC
Published March 3, 1998
Disney is "considering tying its successful ESPN sports
channel more closely to ABC Sports - possibly replacing the
ABC Sports moniker in some programming," according to
Michael Stroud of BROADCASTING & CABLE. A more visible
linkage could give ABC Sports programming "stronger brand
recognition," while giving extra exposure to the ESPN brand
as Disney launches ESPN restaurants and retail stores.
Cowen & Co. analyst Harold Vogel called the possible
scenario an "interesting example of the cable network tail
wagging the broadcast network dog." Since ESPN's "strong"
profit has "helped to counter" ABC's "lesser" contribution
to Disney's earnings, Stroud wrote that bolstering ESPN's
role "makes fiscal sense." Hearst Corp., which owns 20% of
ESPN "would likely approve the plan," although support from
ABC's union members "is less certain" (B&C, 3/2 issue).




