Thursday, August 18, 2005

OLN/Comcast TV deal

In June, ESPN declined their option on the NHL's US TV deal. The NHL shopped around their TV rights to other networks. They found a buyer in Comcast who is willing to pay $135 million to have their network the Outdoor Life Network (OLN) win the US TV rights over the next two years, which was more than the deal ESPN opted out of. ESPN still had the right to match any offer, which the considered to try to keep a potential competitor (OLN) from getting established. It is thought that they might have decided not to because of some of the other clauses in the deal. Comcast agreed to show the games on their primary network, while presumably ESPN wanted the games for ESPN2. TSN's story is here.

From a business standpoint, the NHL accepts more money for a less visable network. They did this before when they were on SportsChannel America instead of ESPN in the late 80's and that did not work out well. This could be different depending upon how OLN is marketed and what other sports are brought in to go with hockey. We know that in the short term, hockey will be the most important show on OLN. Thus, they will have to promote it well. I will follow hockey there, but how many casual sports fans will?

The only thing I have ever watched on OLN is the Tour de France bike race. OLN gathering my viewership more often is a win for them. I recall during the final day of the Tour de France, the show they were pushing hard during all their commercial breaks was reruns of Survivor. That shows how far OLN will still have to come to become a serious sports network if Survivor reruns are their top show to push following the conclusion of the Tour de France.

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