SPAULDING SETS STAGE FOR STARZ'S BIG SALES PUSH ON EVE OF HIS EXIT

BY K. C. NEEL

Que Spaulding has broken a lot ground in the 20 or so years he's been working in the industry. He, along with John Sie, was one of the pioneers of multipay packages at Showtime in the early 1980s; he played a role in the creation and sale of Escapade, the precursor to Playboy Channel, for Rainbow; and helped get Encore get off the ground 11 years ago. Spaulding is now ending his run with Starz Encore, which could be on the verge of breaking new ground of its own.

Spaulding has been pushing cable operators to make Starz a part of their digital cable packages rather than selling it as an add-on premium service, a major shift in the way the network has been sold and labeled. The service itself wouldn't change, Spaulding says; Starz would still offer first-run movies in a commercial-free format.

Spaulding, who is retiring as Starz Encore president of distribution at the end of the year, says that while he's looking forward to retirement, he's sad that he won't be around to follow through on his plan for the Starz services.

The company's flip in strategy, which is still in its infancy, will require a different mind-set for operators as well a change in the way the network is priced and marketed. Obviously, Spaulding says, ?if Starz is available to all digital customers, we won't charge the same amount as we do as a premium service. All those details are being worked out now.? He's hoping new affiliate deals trickle in before he heads for the door. The job of convincing operators that they need to change the way Starz is sold to customers will ultimately fall to Bob Clasen, who's been tapped to replace Spaulding.

?I'll miss the stress, which is essentially the energy you get from doing a deal,? Spaulding says. ?I want to spend more time with my family. This has been a great business to be in, but it's not as much fun anymore. It's grown, and the collegial nature isn't as pervasive as it once was. That said, the new direction Starz Encore is going in is very exciting, and I'll miss it.?

Encore started out as a mini-pay service that offered consumers movies from the '60s, '70s and '80s for $1 a month. Other pay services bashed the little network, saying it would never match the strength and breadth of the other premium networks, such as HBO and Showtime.

Sie wasn't about to shy away from a challenge, and neither was Spaulding. The company, with the blessing and financial help of parent Liberty Media, spent a billion dollars to secure the first-run film rights of all the major studios. Today Starz has more hit movies than any other premium service and, at $10 or $12 a month, costs about the same as HBO and Showtime.

Sie brought Spaulding into the cable business in 1984 while working at Showtime. Spaulding eventually left for Rainbow Programming Holdings (now Rainbow Media). Sie rehired Spaulding 11 years ago to head up the Encore sales department.

?Que is one of the best salesmen I have ever seen,? Sie says. ?It's a bad news/good news situation for me. The bad news is that Que is leaving, even though I envy him and wish him all the luck. He deserves to spend more time with his family. The good news is that Bob Clasen is a great addition to the company. He not only has operator experience and contacts that run very deep but he also has expertise in high-tech areas that will come in very handy for us as we move ahead.?