ABC Affiliates Decry Migration of Sports to ESPN

[TMC1982]

http://www.mediaweek.com/mw/content...broadcast/e3i2a2383a07ad64ff8b3e7c8fd44cc74cc

Feb 7, 2010

-By John Consoli

ABC’s affiliates are not only in a battle with the network over retransmission fees, but they are also boiling mad that corporate sibling ESPN is being handed live sports events they were initially supposed to carry.

The most recent move came in January when ESPN announced it planned to take eight Nascar races this fall off ABC for the coming season to run on ESPN. Even before that, though, ABC coughed up the Rose Bowl beginning in 2011 and golf’s British Open in 2010 to ESPN, which is majority-owned by Walt Disney, the full owner of ABC.

Station executives argued that losing live sports events will not only cost them significant ad revenue and take away a negotiating chip with media buyers, but will also hamper their ability to promote other programming to male audiences. The latter is particularly true among ABC’s Southern affiliates, where Nascar viewing is passionate.

ESPN has the ability to cherry-pick sports from (or occasionally move sports to) ABC, because in 2006 ESPN in effect took control of ABC Sports. All sports programming on ABC is now produced by “ESPN on ABC,” as the onscreen logo reads.

“The migration of more and more live sporting events from ABC to ESPN is troubling,” said Bill Hoffman, vp and general manager of Cox Television’s Atlanta ABC affiliate WSB-TV. Hoffman, who is also secretary-treasurer of the ABC affiliate board, said losing sports will cost affiliates “significant” ad revenue and hard-to-reach (and therefore valuable) male viewers. “Not only have we lost these sporting events, but now we also have to compete against those telecasts on ESPN. Nascar is a huge lifestyle in the South. It’s indigenous to the region. And now most of the live races on broadcast are gone.”

Hoffman was the only affiliate executive who would speak on the record, although several echoed his position on condition of anonymity. “It’s a delicate subject, but we [the ABC affiliate board] are in passionate alignment on this,” he said.

A few station execs privately suspect that because ESPN is a big money maker for Disney, the parent company is letting it pull more live sports from ABC in order to justify hefty subscriber fees. ESPN charges cable operators $4.10 per household, according to SNL Kagan, and is said to be seeking a hike.

Len DeLuca, ESPN senior vp, programming and acquisitions, disputed that rationale, saying the Nascar move is purely about ratings. “What we did was take eight Nascar races on ABC on Sunday afternoons that were not getting maximum audiences nationwide [last season] because they were competing with the NFL,” DeLuca said. He believes ESPN will be able to devote more promotional time to those races to their target audience this fall. The 11 Nascar races on ABC last year averaged a 3.5 household rating, lower than Fox’s Nascar average (5.1) and ESPN’s (3.6 for six races), and just slightly higher than TNT’s (3.3).

DuLuca said he is sympathetic to ABC affiliates but noted they will still air more than 300 hours of “good sports programming” this year, including college football, the NBA, World Cup soccer, the Indy 500, the Little League World Series and three prime-time Nascar races. He added that ESPN has “several shows and concepts in development targeting men” to offer ABC affiliates for airing on weekend afternoons.

As upset as the affiliates are, they have little recourse, and they shouldn’t expect much support from media buyers. “The ratings on ESPN may be lower, but the pricing will be lower also,” said Christine Merrifield, senior vp, group client director at MediaVest. “For sports telecasts, a lot of benefit comes from promotion. And ESPN is a promotional machine. ESPN is an engine that targets men across all of its platforms.

 

[BlackLantern]

waa waa waa....what they need to do is get NASCAR on ONE frakkin channel...stop this the first third on fox, the middle on ESPN/ABC, and TNT...its stupid

 

[Alex The Great]

Nascar on FOX is a million times better than ESPN. I am fine with TNT though

 

[BlackLantern]

NASCAR should just let the networks bid on exclusive rights, I think its big enough now where it can do that

 

[TMC1982]

ESPN's president's response to all of this:

SMW: There was an article that came out a couple of weeks ago, where some ABC affiliates were concerned about the amount of sports migrating from ABC to ESPN. I wanted to know, is there any idea, or any plan in the works to maybe move some of those events back to ABC? Or is there going to be continued migration to ESPN?

Bodenheimer: Well, I think you're going to see we're constantly refining what we're airing and where we're airing it. We still have an extremely strong line-up -- Indy 500, NBA Finals, Little League World Series, college football Saturday night -- we still have an extremely strong line-up on ABC, and I expect that to continue. As far as exactly how it flows in the future, we'll have to see. I think you'll see -- we could see it balancing. But we're going to stay strong on ABC.

SMW: This year in particular, there seems to be a lot more movement towards ESPN. I know you guys are planning to air the Eastern Conference Finals of the NBA entirely on ESPN instead of ABC, also no more Rose Bowl on ABC. So do you see the concern that some affiliates might have?

Bodenheimer: We work closely with the ABC affiliates, we understand their issues. They understand the economics of the business are changing, and sports on free, over-the-air television is a challenged model. That's why you're seeing some of the shifts. It's no more complicated than that. But I don't think you're going to continue to see a wholesale evolution of everything shifting from ABC to ESPN. As I said, we're going to stay strong on ABC with the properties that remain.

 

[BlackLantern]

the business model of TV is changing and ESPN is trying to stay ahead of the curve

 

[TMC1982]

Bodenheimer: Well, I think you're going to see we're constantly refining what we're airing and where we're airing it. We still have an extremely strong line-up -- Indy 500, NBA Finals, Little League World Series, college football Saturday night -- we still have an extremely strong line-up on ABC, and I expect that to continue. As far as exactly how it flows in the future, we'll have to see. I think you'll see -- we could see it balancing. But we're going to stay strong on ABC.

ABC doesn't have an "extremely strong" sports line-up! They have no NFL (having given Monday Night Football up to ESPN in 2006), no Major League Baseball (not having broadcast that since 1995), no NHL (not since 2003-04), no major college football bowls (having lost the BCS to Fox several years back), minimal college basketball, minimal horse racing (they lost the Triple Crown to NBC in 2001 and now, only have the last race of the Triple Crown), no PGA Tour (having lost that in 2006), and minimal NBA coverage (and some of the lowest ratings for the NBA Finals ever). ABC pretty much treats their sports programming like weekend filler at the moment. The folks at ESPN just flat out can't admit that they want to charge as high as a subscription fee rate as possible by having all of this big time events there instead of on ABC.

 

[BlackLantern]

well ABC/ESPN gave the NHL a rather sizable tv deal back in 2002 and then the very next season there was a lockout...the PTB were ticked and had the deal voided and yanked all NHL programming off their channels

they got outbid for MLB, by Fox for chrissakes

but why is ABC the only network complaining this publicly

I dont know where you live but ESPN is part of basic cable here in CT

 

[TMC1982]

George Bodenheimer just seems like somewhat of a two-faced, uber self-congratulatory person if you ask me. Here's what he said when he first took over ABC Sports back in 2003:

When ESPN's George Bodenheimer was handed the reins at ABC Sports in 2003, he praised the sports division's "elegant" 40-year history.

"It's one of the greatest assets in television sports history," he said. "We're going to obviously seek to maintain and enhance that."

Seven years later, not only has ABC Sports ceased to exist, but the replacement (ESPN on ABC) continues to shed sporting events. NASCAR is just the latest sports property to virtually vanish from ABC.

Bodenheimer was also once quoted saying "Anybody looking for the demise of ABC Sports is barking up the wrong tree!" Of course, one year later, ABC Sports officially became branded as "ESPN on ABC".

 

[Addendum]

I dont know where you live but ESPN is part of basic cable here in CT

Same is true in TN. If someone can't afford basic cable, find a better paying job or work some overtime.

 

[TMC1982]

What ESPN is doing as a "response" is incredibly condescending. Lets see, a repeat of ESPN programming (a la ABC's current Saturday morning line-up, which is little more than reruns of live-action Disney Channel shows) and a weakly put together Sports Nation knock off. All that ESPN is doing in order to "placate" ABC affiliates (it doesn't matter how much ABC is being affected, as long as Disney is able to make money, and ESPN continues to hold a monopoly) is produce a weekly 2-hour show, whose primary purpose is either to promote future ESPN programming or re-air old ESPN programming?

In essence, the whole "ESPN on ABC" concept to begin with is a glorified infomercial for the ESPN cable channel. It's no different than whenever premium cable channels like Showtime has their annual "free preview" weekends.

And it doesn't take being a genius to understand that what the affiliates meant was they want the big-time sports properties that ESPN has poached from ABC (i.e. the NBA, NFL, college football, PGA, NASCAR, etc.). But of course, Disney is terrified that they can't make more money on broadcast television, so they'll take things exclusively to cable. Roone Arledge must be rolling over in his grave right now!

The best analogy that I can think of is the "Black Saturday" pro wrestling incident of 1984. That particular incident concerned Vince McMahon showing up on WTBS' World Championship Wrestling (Vince had purchased the timeslot in hopes of expanding the WWF's national reach) program after the audience has grown accustomed to watching Gordon Solie and the Georgia Championship Wrestling product.

Viewers objected to the changes because whereas Georgia Championship Wrestling/the National Wrestling Alliance was more about athleticism and scientific wrestling, the WWF product was more about squashes and "sports entertainment". Ted Turner also was upset because rather than produce original matches in the WTBS studios in Atlanta, Vince just put together a highlight package of the WWF's house shows (that may have already aired elsewhere).

Ultimately, Vince sold the timeslot to Jim Crockett Promotions (the immediate forerunner for what would become the Turner owned promotion known as World Championship Wrestling) out of North Carolina. JCP essentially, helped Vince pay for the first WrestleMania.

So in conclusion:
*Vince McMahon/WWF=Disney/ESPN

*Ted Turner/WTBS=ABC's affiliates

*WWF World Championship Wrestling=ESPN Sports Saturday - ABC's affiliates want major live sports events (it doesn't take rocket science to figure that out), not a rehashing/dumping ground and cheap filler material that can be seen elsewhere on the ESPN family of networks.

*The ABC Sports brand and tradition being changed to "ESPN on ABC"=Georgia Championship Wrestling being changed to the "hipper and cooler" (i.e. "Rock 'N Wrestling") World Wrestling Federation brand

And speaking of the response to ESPN Sports Saturday...:
Sports Media Watch says the debut of ESPN Sports Saturday on ABC did rather poorly.

 

[BlackLantern]

and all this time later, Vince McMahon is still standing....granted he's crazier than a ****house rat

 

[TMC1982]

and all this time later, Vince McMahon is still standing....granted he's crazier than a ****house rat

I'm only referring to the events that fit within the context of what happened in 1984-1985. I don't feel the need to have to go into whatever transpired in Vince McMahon's career well beyond that.

 

[Addendum]

It's not really a monopoly if the NBA also airs on TNT; the NFL can also be seen on Fox, NBC, and CBS; College football can also be seen on CBS, and on Foxsports, the PGA can also be seen on CBS, NBC, TNT, and the Golf Channel; and NASCAR can also be seen on Fox, TNT, and the Speed Channel.

 

[BlackLantern]

I believe TMCs overall point is that televised sports are moving away from broadcast TV to cable and that ESPN is speeding the process

 

[Addendum]

But the leagues can sign broadcast deals with whatever network they choose. And some teams have deals of their own with local channels.

 

[SurfDUI]

When the mouse accuired ABC, that was a big red flag similar to the one used to warn of a hurricane of things to come. Major Sports on broadcast over the air T.V. is nearly gone the way of the T-Rex.

The only events that will likely never move to cable in large part is the bulk of the NFL season, Superbowl, World Series, NCAA Men's Basketball. I thik the BCS will eventually move as well. Throw in a couple of stray Yankee / Cubs games on Saturday and NASCAR on FOX.

Local affiliates be damned.

 

[BlackLantern]

the model for sports on tv is changing

progress it is

 

[TMC1982]

Last week's edition of ESPN Sports Saturday, featuring Homecoming with Rick Reilly and Winners Bracket, drew a mere 0.3 final rating on ABC -- down 63% from a 0.8 for the show's debut a week earlier. (Sports Business Daily)

Personally, I feel that ESPN/Disney thinks that they're having their cake and eating it to. They can "please" ABC's affiliates with this ESPN Sports Saturday program, while at the same time, not lose valuable revenue by having big time, live sporting events go to broadcast television.

And here's another example of how George Bodenheimer is full of you know what. Here's what he said back in 2003, when he was first announced as the new president of ABC Sports (back when it was still officially known as such):

According to the network, ABC Sports and ESPN will continue to run as two separate operations. Which of course prompts the question: If you're going to have one executive run them both, why not merge the entities and save untold millions on all the back-office overhead?

Here's the answer, according to Bodenheimer: "They are two very distinct and separate businesses. ABC Sports is such an integral part of ABC Television. At ESPN, we have a minority partner with the Hearst Corp. So, for those two reasons, it makes sense to keep them as two separate organizations."

Indeed, ABC's broadcast affiliates, including Hearst-Argyle (in which Hearst has a controlling stake) and many others, have told the network they oppose a merger of the two networks or any moves that would dilute the ABC Sports brand.

 

[BlackLantern]

yes 2003 .... 7 years ago

the TV landscape and viewing habits have changed immensely since then

 

[RAMORE]

Wait a second the eastern finals are only espn That means i'm gonna miss it or have to go somewhere to watch it damnit

 

[TMC1982]

yes 2003 .... 7 years ago

the TV landscape and viewing habits have changed immensely since then

My point in my last post concerns how much of a BS artist Mr. Bodenheimer is:

Here's the answer, according to Bodenheimer: "They are two very distinct and separate businesses. ABC Sports is such an integral part of ABC Television. At ESPN, we have a minority partner with the Hearst Corp. So, for those two reasons, it makes sense to keep them as two separate organizations."

Fast foward a couple of years later, and ABC Sports no longer has a very distinct and seperate identity from ESPN (even though Disney was slowly intergrating the two for almost a decade). Instead of being up to par with other broadcast networks like CBS and Fox, it's little more than a devalued, weekend dumping ground for ESPN.

 

[BlackLantern]

and?? is there some die hard rule saying you must have sports over broadcast tv???

I still believe that there is some bad blood between the NHL and ABC/Disney, considering how that partnership ended abruptly

who in the TV industry isn't a BS artist to some degree...and let's be honest "ABC Sports" had been dead for years, save for Monday Night Football, and that's been gone for a few years now

 

[TMC1982]

and?? is there some die hard rule saying you must have sports over broadcast tv???

I still believe that there is some bad blood between the NHL and ABC/Disney, considering how that partnership ended abruptly

who in the TV industry isn't a BS artist to some degree...and let's be honest "ABC Sports" had been dead for years, save for Monday Night Football, and that's been gone for a few years now

Well purely based on what the affiliates recently complained about, yes there's a certain rule saying that there should be live sporting events on broadcast television. Otherwise, there's little to no point in there being sports broadcast at all on ABC period.

And just because there maybe many "BS artists to a degree" (the people running NBC at the moment like Jeff Zucker for instance) on the TV industry, still doesn't excuse the fact that Mr. Bodenheimer absolutely contridicted himself. If you're the president of ABC Sports or any other high profile TV brand/network/company, you're principal job should be to help that particular brand florish.

 

[BlackLantern]

Well purely based on what the affiliates recently complained about, yes there's a certain rule saying that there should be live sporting events on broadcast television. Otherwise, there's little to no point in there being sports broadcast at all on ABC period.

if you could find the FCC ruling or something in the FTC that actually says that, I would love to read it...what the affiliates are complaining about is that ESPN is getting a piece of the pie that they used to get...it's not about broadcasting sports and reaching the masses, its about money

And just because there maybe many "BS artists to a degree" (the people running NBC at the moment like Jeff Zucker for instance) on the TV industry, still doesn't excuse the fact that Mr. Bodenheimer absolutely contridicted himself. If you're the president of ABC Sports or any other high profile TV brand/network/company, you're principal job should be to help that particular brand florish.

No...your job is to maximize exposure and profit for the network and if said brand (whatever it is) isn't doing it, then you come up with something else and move forward

Variety shows used to be all over TV and what happened, same thing with those 'Movies of the week'? they died because the desires of the audience changed and it wasn't profitable

well NBC is trying to bring that 'movie of the week' thing back though

I honestly don't know anyone who doesn't have ESPN, its like basic basic basic cable