Cox Communications settled half of its battle with pricey sports networks, securing a carriage deal for six Fox Sports regional channels, renewing a carriage deal for a much tamer increase than the programmer had sought.
The detail follows the outlines first reported in BROADCASTING & CABLE two weeks ago. Fox Sports' six-year renewal of its Cox carriage deal includes retransmission consent of Fox Broadcasting stations and carriage of its 50%-owned National Geographic Channel and startup extreme-sports net Fuel. The deal ensures that the 3.3 million Cox subscribers in six Fox Sports markets will continue to receive their regional sports networks: Phoenix and Tucson, Ariz.; Oklahoma City; New Orleans and Baton Rouge, La.; Omaha, Neb.: San Diego; and Macon, Ga. Cox owns systems serving an additional 3 million subscribers in non-Fox markets.
Fox had initially sought a 35% license-fee increase but scaled that back. But Fox Sports will get a larger step up in 2004, followed by five years of smaller increases. One industry executive said the license fees increased an average of 8% over the life of the deal, but Merrill Lynch analyst Jessica Reif Cohen said it could be as high as 10%.
Cox remains in a larger fight over renewal of ESPN, which is demanding a deal with an annual 12%-20% escalator. A Cox spokesman said the network has recently shown a willingness to negotiate terms but the two sides are 'still very far apart.' An ESPN spokeswoman said the Fox Sports deal 'speaks to our rate and our value. We outdeliver all the regional sports networks and have hundreds of games and teams.'
