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Re: peering charges?

  • From: Mike Leber
  • Date: Mon Jan 27 04:09:25 1997

On Mon, 27 Jan 1997, Sean Donelan wrote:
> FoxSports-Midwest recently announced they were going to start charging
> cable companies 8 cents per subscriber to carry NHL hockey games.  TCI
> balked, and was going to drop FoxSports.  FoxSports ran a crawl-line
> across the bottom of the last NHL hockey game saying TCI customers would
> no longer be able to watch NHL hockey.  What do you think the final
> outcome was?  Did TCI end up paying FoxSports, or did FoxSports end
> up paying TCI?

This worked for FoxSports because the limited number of channels available
via most cable systems creates strong brand identification and
concentrates subscribers.  Imagine if TCI had 400,000 channels instead of
40 with the same subscriber base and no one channel having a viewership
more than .01% of the subscriber base. 

Mike.

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