With Fox Sports Net renewing cable rights with Disney's
Mighty Ducks and Angels last month and ABC/ESPN bidding for
the entire NHL package, "many observers" see the battle
between FSN and ESPN "as plain and simple war," according to
Jim McConville of ELECTRONIC MEDIA. Gould Media President
Barry Gould: "In any part of this battle going on between
Disney/ESPN and Fox, each wants to acquire the sports rights
for the purpose of weakening the position of the
competition." But Fox/Liberty Networks President & COO Tony
Ball said, "We're really not challenging ESPN for rights at
present. It's really a case of an expanding (sports) pie,
and we're carving out a bigger share." Ball said that with
FSN's regional approach set, it now "has its eye on
duplicating" ESPN's "SportsCenter" success. Ball: "You
don't have to be a rocket scientist to see what happens when
you can create your own (programming) stuff that can reach
60 million homes. It's the way to go." Media buyers said
that the feed-in to "Fox Sports News" after games on FSN
"should help build" its national audience. But ESPN execs
point out that "SportsCenter" still overshadows FSN "even in
its own local sports markets." ESPN said that
"SportsCenter" averaged a 1.2 rating in July compared with a
0.3 rating for "Fox Sports News" (ELECTRONIC MEDIA, 8/14).
FSN APPROACH "PAYING OFF": But McConville writes that
FSN's regional approach "is paying off" in MLB ratings that
"deliver larger audiences nationwide than ESPN." Ball: "Our
proposition is that we can sell the same advertiser spots in
every region, where they're getting probably anything from a
5 rating up to a 10 in some markets such as Chicago or Los
Angeles." BBDO VP Steve Grubbs: "When you can televise the
home team into its own market, it's a big numbers advantage
vs. ESPN." FSN's regional strategy also lets media buyers
"pick and choose" in select markets. Zenith Media VP Bill
Sheehan: "You don't have to buy their complete lineup; you
can go ahead and maybe buy 10 markets with your spot money."
Salomon Brothers financial analyst Robert Donahue said FSN
will generate about $180M in cash flow this year "and could
throw off" $650M in five years (ELECTRONIC MEDIA, 8/14).
BIG PICTURE: Nevertheless, industry experts "say its
still too early to gauge whether [FSN] will emerge as a true
national competitor to ESPN." Grubbs: "[ESPN] comparisons
right now are a bit premature. It's probably a two-year
process." One media buyer said that putting together a
national ratings system is essential for FSN : "They have to
develop with Nielsen a system where they'll be able to
generate truly national ratings" (ELECTRONIC MEDIA, 8/14).
