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AT&T, Time Warner to Carry Fox Sports Digital Nets

BY JON LAFAYETTE

Though programmers were few and far between at the Western Show in Anaheim, Calif., last week, Fox Cable Networks and AT&T Broadband managed to close a sports network distribution deal.

AT&T agreed to carry Fox Sports Digital Nets, the new three-channel digital multiplex carrying live sports events and regional sports news drawn from Fox's 22 regional sports networks.

Fox also disclosed that Time Warner Cable a few weeks ago agreed to carry the digital network, joining Charter Communications, which launched the service earlier this year in St. Louis and Fort Worth, Texas. The deals put Fox Sports Digital Nets on three of the top four cable systems.

A separate agreement with AT&T also puts the channels on AT&T's Headend in the Sky program delivery service, which makes it available to Adelphia systems and many small operators.

Fox projects that the package could be available to 2 million subscribers by the end of next year.

Details of the deal were not disclosed, but industry sources say Fox is seeking license fees of about 30 cents per sub for the three-network package. Fox is not paying launch fees or offering marketing funds or receiving distribution guarantees.

Lindsay Gardner, EVP-affiliate sales at Fox Cable, said the basics of a deal with AT&T had been worked out months ago but couldn't be completed because of travel restrictions imposed after Sept. 11 and management turmoil at AT&T. When Gardner heard that certain AT&T executives, including VP-programming Allan Singer, would be coming to the show, he told them he wanted to finalize the deal in Anaheim.

Gardner said cable operators have been seeking a multiple-channel package of out-of-market sports programming to compete with the package of 22 regional sports channels offered by satellite operators. Gardner said that about 15% of DBS subscribers are signed up for the sports service.

Cable operators don't have the channel capacity to deliver that many channels, but Fox says it is able to slice and dice its programming to minimize blackouts and duplication while providing subscribers with as many as 30 extra games per week for about $10 a month.

Though Fox is not providing marketing support, Gardner expects operators to push the package.

?Certainly we're excited to have a new arrow in our quiver to take on competition from satellite,? said AT&T Broadband spokesman Andrew Johnson. ?I think it will find a nice slot in our digital tier.?

Fox is planning to promote the package in St. Louis and Ft. Worth, the markets in which Charter has already rolled out the Fox Sports Digital Nets. It will set up three TV monitors and challenge contestants to watch for 24 hours ? or 72 hours worth of programming on three channels. The top prize will be three high-definition televisions.

Gardner expects the contest will be promoted with ads on sports talk radio. Including the prizes, each promotion will cost about $50,000.

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