The Golf Channel (TGC) "seems to be soaring, with 23
million viewers in the U.S. watching on more than 1,600
cable systems nationwide and 3.2 million receiving the
channel via satellite dish," according to the WASHINGTON
POST'S Leonard Shapiro, who writes in the current issue of
GOLF magazine. TGC execs "believe they can continue adding
about" six million homes a year, "meaning more revenue to
spend on bidding for rights for the game's biggest events,
even early-round coverage" of the four majors. TGC co-
Founder Joe Gibbs: "It has evolved very, very close to the
original business plan when we switched from being a pay
channel to a basic cable channel." While Gibbs "won't offer
financial specifics," Shapiro notes that TGC "turned its
first profit" of about $15M last year, on revenues of $61M,
an 80% "jump from the previous year, with another increase"
to $80M in revenues "expected" for '99. Gibbs adds, "The
golf industry slump has not influenced us at all. If
anything, it's helping us. A lot of advertisers tell us,
'We can't afford the network ads; you guys are perfect for
us.' We now reach a larger audience, so 50 percent of our
advertisers are not even in the golf industry." But Shapiro
writes that some "question the wisdom of having so many
sponsored segments" on TGC's "Golf Central" news show,
"ranging from the Top-Flite Weekend Review and Orlimar Stock
Report to the TearDrop Putt of the Week" (GOLF, 9/99 issue).
