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STAR Sports’
18-month-old association with Entertainment & Sports Production
Network (ESPN) in India is in danger of breaking up, going by the
buzz in the cable television and satellite channel industry. Although
the spokesperson for ESPN denied that the association was breaking
up, industry sources said the two premier sports channels were looking
at the option of separation after ICC World Cup cricket rights were
sold to Sony Entertainment Television (SET).
ESPN STAR Sports
is a 50:50 joint venture formed in November 1996 between Walt Disney’s
ESPN and Rupert Murdoch’s STAR. In India, the alliance was
formed in October 2000. A top executive of a leading pay channel
distributor here pointed out that ESPN was unhappy because it did
not figure in the prime band in many parts of the country, apart
from the fact that Global Cricket Corp - in which Murdoch has a
stake - sold the cricket rights to SET. “ESPN is certainly
not happy with the alliance. Though the World Cup cricket rights
is one of the contentious issues, non-availability of ESPN in the
prime band in many parts of the country is another factor behind
ESPN’s discomfort. Our information suggests that the alliance
will last till August this year,” he said. The ESPN spokesperson
denied there was any plan to end the alliance. “There is no
basis for this kind of conjecture. We are a comprehensive sports
channel with interests in various sporting events. Regarding the
bidding for the World Cup rights, our objective was not to outbid
others, but to ensure that we are able to make sound business decisions
regarding our investments,” ESPN Software India’s spokesperson
said.
Industry analysts
believe that the losing the World Cup rights to SET will certainly
hurt ESPN’s business in the subcontinent as it is one of the
main moneyspinners for the sports channel. “ESPN has realised
that businesswise the channel will be hit more than STAR Sports
as Rupert Murdoh has made his money from the sale,” an analyst
said. In 2000, GCC won the rights to market ICC events for six years.
It was presumed by the industry that ESPN-STAR Sports would automatically
get the Indian rights. SET’s successful bid upset all these
conjectures. Initially, six players were in the fray when the bids
opened in November last year. ESPN STAR Sports, SET and the government-owned
Prasar Bharati were considered the three serious contenders, based
on their financial strength and record in cricket. By putting in
the highest bid, SET has acquired the TV coverage rights for all
international cricket matches organised by the ICC as well as two
World Cups till 2007 for $375 million.
The acquisition
puts SET in a comfortable situation in the highly lucrative arena
of sports broadcasting. “Our understanding is that ESPN has
failed to derive the benefits it expected from the alliance in India.
One of the areas of discontent is the non-availability of the channel
in the prime band in many parts of the country in contrast to the
STAR Sports,” an industry watcher said. But the ESPN spokesperson
said it will remain the best channel for cricket lovers even without
the World Cup cricket rights. “The network has exclusive rights
to telecast cricket played in eight out of 10 test playing nations.
We have also acquired the rights to Bangladesh cricket till mid-2006.
We will continue to bring the best sports events to the Indian fans
in the coming years,” ESPN’s official spokesperson said.
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