Cox may drop ESPN, Fox Sports from basic cable
 

Some cable TV viewers may have to decide if they are willing to pay extra for ESPN and Fox Sports.

http://sfgate.com/cgi-bin/article.cg...634EDT0213.DTL

One of the nation's largest cable operators says the sports channels have become too expensive for its basic packages and should become premium content.

Jim Robbins, chief executive of Cox Communications, says his customers are ready to embrace the change he says is forced by the fact the ESPN and Fox Sports channels combine for 8 percent of Cox's cable viewers and 32 percent of its costs.

"We're a company that is very customer-focused," Robbins said Monday. "We wouldn't be doing what we were doing unless we were fairly certain it would meet with our customers' satisfaction."

Cox is the nation's fourth-largest cable operator. The company's contract with Fox Sports expires at the end of the year, and its contract with ESPN runs through the first quarter of 2004.

Though ESPN and Fox officials insist they will not allow their content to be placed in premium packages, Robbins predicts other cable operators will follow the Cox lead unless the sports channels "can somehow get the costs down to some reasonable level."

"The price of ESPN today is more than the top seven-rated (advertising based) networks combined," Robbins said. "This is one area where we think we have got to take a stand."

Robbins proposes moving the sports channels out the list of expanded basic channels and into a premium tier of channels.

Sean Bratches, ESPN's senior vice president of affiliate sales and marketing, insists the sports networks, which also include ESPN News, ESPN2 and ESPN Classic, will not become premium tier content.

"I don't foresee a scenario where we would permit the distribution of ESPN service in a manner Cox is suggesting publicly," Bratches said. "Clearly we prefer to have those discussions take place in the board room as opposed to the press."

Bratches said customers would pay more in monthly service and equipment fees if ESPN's channels were marketed as premium offerings. More customers would have to lease cable converter boxes as well as pay extra fees for the premium channels.

Robbins said Fox is requesting a 35 percent increase in its current rates and that ESPN wants a 20 percent increase.

A complicating factor in the negotiations is the cable industry's battle to protect its market share against satellite TV.

News Corp., the parent company for Fox, is in negotiations to purchase satellite content provider DirecTV. If that deal is completed and Cox makes Fox Sports premium content, Robbins acknowledges he could risk pushing customers to purchase satellites.

That risk becomes more of a factor if Cox follows what Robbins calls "the most extreme" option of taking the sports channels off the Cox lineup of channels, if only temporarily.

"We worry about that," Robbins said. "If we drop the Fox regional sports channel and they put it on satellite, then (customers) have to go to satellite to get it."

Robbins said a disruption of service "is not the option we are looking for because Fox and ESPN both offer a great product."

"What we're haggling about is the price of that product," Robbins said.

A Fox Sports spokesman, Nick Weinstock, said the company would not discuss its negotiations with Cox Communications "except across from the table with them."

what a crock of shit. they are just a bunch of cheap bastards.

Let me say it again for you folks out there: There is ABSOLUTELY NO WAY Cox is going to drop ESPN from its lineup. Consumers would revolt and go to the dish providers in droves.

Cox doesn't pay a dime for ESPN. The cost comes out of their customers' pockets in the form of higher rates, and I for one don't want to pay it. I never watch ESPN. So sure, I'm a cheap bastard because I don't want to pay for something I have no interest in.

i only watch espn on rare occasions. i shouldn't be payin ~30% of my cable bill for it. i think cox is using this threat as leverage to negotiate lower fees. i'm all for that.

then don't subscribe to cable. the vast majority of people do watch it. if you don't like it, don't pay.

what cracks me up is that cox says they're so customer focused. i have cable because i just feel comfortable with it, but if they drop espn, i'd get a dish that very same day. but cox is nothing if not rude and unhelpful 90 percent of the time. i think i heard that cox reps have been asking customers what they would do if they were to drop these channels or charge for them, well, i haven't been asked or gotten anything in with my bill and these guy says cox subscribers are ready to embrace these changes. if it hadn't been on cnn and they would have dropped these channels, i would have found out from cox when i clicked on sportscenter and it was another telemundo channel.

You make a good point. However, I have a feeling that if they push these channels up to a pay package, they won't lower the basic package much at all.

I reall don't understand why cable companies don't allow à la carte style channel ordering. Well, I do. It puts more money in their pockets. But their claim that it isn't possible seems like a load of crap.

doesn't look like it:

ESPN and Fox Sports channels combine for 8 percent of Cox's cable viewers

Screw Cox.. If they drop ESPN, that is the final push I need to go to the Dish.

Jason

and you got this information where?

You also forget, that both these channels cater to the key demographic that advertisers drool over. So, despite what the actual #'s are, I'd be willing to bet the revenue generated far outweighs other channels.

Cox is the worst. I'll not be held responsible for my actions if they drop ESPN.

"News Corp., the parent company for Fox, is in negotiations to purchase satellite content provider DirecTV."

That's news to me! With three rooms hooked up though, Cox is still cheaper for me than DirecTV.

I highly doubt ESPN would get dropped, unless by basic they are referring to the 10-12 channel packages some cable companies have that usually only carry the local affiliates like nbc, cbs, abc, fox, upn, wb etc and a couple other channels
I pay a little over $40 for about 80 channels
it would be so cool if they went to a 50 cent per channel type service as I would drop a lot of channels
as long as the rates between cable and dish are close and my tv has a built in cable tuner, I'll stick to cable

from Jim Robbins in the original post

Eh...I'll still keep with Cox even if they pull ESPN. I already have phone and internet through Cox, so I get a discount for having their whole "suite" of services. Also add on the fact my apartment balcony faces north, and I have really no choice about switching to Dish/DirecTV.

Yeah, good luck with that Cocks, oh I mean Cox. ;)

demographics don't matter to cox, customers do. demographics matter to espn. if cox is serious about this, they will force espn to lower their rates and will keep them. cox simply has to cater to their customers. but like others said, i doubt we'd see a significant drop in cable rates if they drop the channels

Cox is always trying to screw somebody over. It wouldn't affect me since I have the digital cable pacakge, but that's still a dumb idea.

I would finally make the switch to sat, as much as I have been fighting it. I guess I may finally get my 2-tuner tivo.

I am so happy I left Cox when we moved into our new house. DirecTV with Tivo is the only way to go. :thumbsup:

Other cable companies in Texas offer a cable modem without having a cable subscription. Cox requires at least basic cable to get a cable modem. :(

You don't really think they'll be passing along the savings to you do you?

Here in Oklahoma you can have a cable modem through Cox, but they charge you more. I wonder if they give you a break if you have phone and internet, as their phone service is cheaper than SBC, I guess I have calls to make.