When we think of sports broadcasting we immediately think of ESPN, "The Worldwide Leader in Sports." ESPN is a huge revenue source that the Walt Disney Company has enjoyed since 1996 when it first started operating as a Disney subsidiary. To date, no other network has come close to competing with the sports media giant. Fox Sports has programmed some cable sports networks at the local and regional levels, but nothing that has posed a credible threat to ESPN. However, a recent merger between the Comcast Corporation and NBC Universal could very well produce the first real competition to ESPN
With a 4 to 1 vote on January 18 the Federal Communications Commission (FCC) approved the deal that allowed Comcast to purchase NBC Universal, which was previously owned by General Electric. The merger will give Comcast a 51% controlling stake in NBC Universal. Even prior to the merger Comcast owned the sports channel Versus, the Golf Channel, a part of the MLB network, and several regional sports networks around the country. These outlets in addition to the media deals NBC has with the NFL, NHL, Notre Dame Football, and the 2012 Olympics will now all be run by Comcast.
All eyes are on the Versus channel and its potential to evolve into a major cable sports network. Versus currently has the NHL, cycling events, and the United Football League however, it has not yet been able to get 100% penetration rate on basic cable throughout the country. Many people expect Comcast sports programming and NBC sports programming to integrate and end up on cable TV networks like USA for the time being. While it is highly unlikely Versus will challenge ESPN in the short term, it will be interesting to see what happens when the contracts other networks have with the various professional sports leagues expire.
Disney is currently in negotiations with the NFL about extending ESPN's Monday Night Football contract through the 2022 or 2023 seasons, but Comcast now has NBC's Sunday Night Football through the 2013 season. With Sunday Night Football being the top rated prime time show on over-the-air network TV in 2010, Comcast will undoubtedly invest as much as it has to in order to keep the series long term.
Comcast also now has the rights to cover the 2012 Summer Olympics in London. This will give the newly merged Comcast-NBC Universal the perfect opportunity to use all of their resources/media outlets to cover the games and show the world that they too are a force to be reckoned with in sports broadcasting. The International Olympic Committee waited for the FCC to act on the merger before it opened up contract negotiations with networks regarding the rights to the 2014 Winter Olympics (Sochi-Russia) and the 2016 Summer Olympics (Rio-Brazil). Most are confident Comcast will continue to bid top-dollar for those rights as well.
NBC has not covered the MLB, NBA, or college football (with the exception of Notre Dame Football) for a very long time. However several media contracts with these leagues will expire within the next decade. Disney has the rights to the BCS games (Bowl Championship Series) through January 2014 and both Disney and Time Warner share the rights to the NBA until 2014. Major League Baseball currently has deals with Disney, Time Warner and News Corp that will end in 2013. By the time the bidding war for these contracts begin, Comcast-NBC Universal will have had at least two years to build its foundation in sports broadcasting and promote the Versus network. With the coverage capabilities the network will have by that time, it is hard for us to believe that these leagues would cut a deal with Comcast-NBC Universal.
Comcast and NBC currently have a stronghold on the NHL with its national cable and over-the-air TV rights. Comcast even owns the Philadelphia Flyers. Disney reportedly would also like to try and get some of the NHL's cable TV rights. Some anticipate this could be firth first real bidding war between ESPN and Comcast.
Comcast-NBC Universal has all the ingredients to build a competitive sports broadcasting empire. Through its all-sports channel Versus, they have the ability to make a network that can pose a serious threat to ESPN. In order to do so, the network must first be available to all viewers in the country. Second, it must make a serious push to keep and gain coverage rights to the most popular sports in our society (NFL, MLB, NBA, NHL) as their contracts expire the next few years. Third, all of Comcast NBC-Universal's sports assets should be united under one common banner, such as the Versus network. Finally, Comcast has to make these sports available to viewers through a variety of platforms. Comcast Corporation is one of the nation's leading providers in high-speed Internet, digital cable, and phone service. The sports and leagues Comcast-NBC Universal cover must be available on over-the-air TV, cable TV and broadband.
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