Big Ten Network, Charter Reach Agreement On Multi-Year Deal

BRIGHT HOUSE: Bright House Cable Dir of Public Affairs Al Aldridge yesterday said Bright House is "very close to a deal" to carry BTN. Aldridge: "If we get all of the finite issues resolved, I'm pretty sure we'll have it on the system by the weekend." In Indianapolis, Mark Alesia notes Bright House "has 125,000 subscribers in Indiana, mostly in Indianapolis and parts of the surrounding metro area" (INDIANAPOLIS STAR, 8/27). The INDIANAPOLIS BUSINESS JOURNAL's Anthony Schoettie notes Bright House is an "independently owned cable operator with close ties" to Time Warner Cable (TWC) (IBJ.com, 8/26).

BIG WINNER: Pali Research's Rich Greenfield called News Corp. the biggest beneficiary of BTN's recent carriage deals with Comcast and TWC. "Comcast's agreement ... enabled BTN to eliminate its $70M-plus start-up losses from fiscal (June) 2008 and (Tuesday's) Time Warner Cable deal should enable the network to be profitable, particularly as it provides a meaningful advertising platform for the first time," he wrote. Even with the deal, Greenfield believes TWC's EBITDA growth will slow in '09 "driven by programming costs (Univision, BTN, etc.) and weakening advertising sales. Further, TWC's concession to carrying BTN could have implications for the company's pending retransmission negotiations with Univision, which we estimate could impact 2009 EBITDA by at least $80(M) (assuming $0.50/sub/month)" (John Ourand, THE DAILY).

WAKE-UP CALL: In Nashville, David Climer writes ESPN, which Monday formally announced a 15-year, $2.25B rights deal with the SEC, "apparently prefers quality over quantity," which is "why the SEC was the clear-cut choice." Climer: "If ESPN had expressed any real interest in a similar package with the Big Ten, don't you think that league would have held off on launching the Big Ten Network, with all its second-tier games and distribution issues?" ESPN "wanted a total package, particularly football and men's basketball," and the SEC "offered more for the money." The deal "secures the legacy of SEC Commissioner Mike Slive" and serves as a "wake-up call for the rest of college sports" (Nashville TENNESSEAN, 8/27).

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