The Golf Channel (TGC) co-Founder & CEO Joe Gibbs can
breathe "a sigh of relief" as he "continues to see his
vision expanding across the television landscape," according
to Dave Shedloski of GOLFWEEK. Good news "has been pouring
in of late," with TGC's "Golf Central" recently winning a
CableACE Award, and with distribution "expected" to hit
around 14 million homes by year's end, "meeting estimates."
At the present rate, TGC will reach 20-22 million U.S. homes
by the end of '98 and "be in the black on day-to-day
operations by summer." In addition, distribution abroad
"may add another" 5-6 million homes by the end of '98.
Gibbs and partners, including Fox, can then "harbor thoughts
of recouping" their $135M investment (GOLFWEEK, 12/13).
GROWING AD BASE? Shedloski adds, however, that the
growth in households through "basic and tier offerings" does
have a "potential downside," in that ad rates on TGC, "while
not likely to decrease, may not increase at a rate
commensurate with other broadcasters." Brian Fortini,
Senior Marketing Manager/Taylor Made, noted the possibility
of audience dilution, but still called TGC "a core buy."
Shedloski: "That's particularly true for smaller golf
companies that may never be able to afford network ad
rates." For example, Adams Golf, which has seen its club
sales "rise from" $3M to $30M, "attributes its infomercial
on TGC with reaching more customers" (GOLFWEEK, 12/13).
