MUMBAI: ESPN and Major League Baseball have reached an eight-year, multiplatform rights extension agreement which will significantly enhance ESPN?s TV, digital, radio and International MLB rights.

While financial details have not been disclosed, the agreement effective 2014 through 2021 is believed to be in the region of $5.6 billion. ESPN had last year extended its deal with National Football League till 2021 for a whopping $15.2 billion.

For MLB, ESPN will pay $700 million a year in rights fee which is double the amount that the cable network pays for the rights currently.

The new agreement will guarantee a 30-plus year continuous relationship between ESPN and MLB - dating back to 1990 - which is one of the longest standing relationships between a network and a league.

The agreement is highlighted by the addition of an annual Wild Card game, the rights to produce a significant amount of additional MLB studio programming hours, 10 additional regular-season games, increased footage and highlights rights across platforms, increased ability to co-exist in local team markets and added content across digital platforms and WatchESPN. In addition, rights across ESPN Radio, ESPN International and ESPN Deportes will expand.

MLB Commissioner Allan H. Selig said, "On behalf of Major League Baseball, I am thrilled that we will continue our long-standing relationship with ESPN far into the future. The level of ESPN?s commitment to baseball - both financially and through its expanded content - is a testament to the strength of our game and its unprecedented popularity among our fans. Through its various networks and other media platforms, ESPN offers baseball fans more avenues to experience the game than ever before, and we?re thankful for their continued support."

ESPN President John Skipper said, "We?re thrilled to renew our long-standing agreement with Major League Baseball into the next decade. It?s a great property. The enormous scope of what we acquired will provide fans with more live baseball and more ways to access baseball content than ever before."

ESPN?s expanded MLB package will include the addition of an annual Wild Card game presented by Budweiser, which will alternate between AL and NL each year.

ESPN will also get the rights to produce a significant amount of additional Baseball Tonight hours; the rights to all regular-season tiebreaker games - if necessary; in-progress highlights during SportsCenter on ESPN, ESPN2 and ESPNEWS; 10 additional regular-season games per season, including four Pennant Chase games in late September and up to six Holiday games across Memorial Day, July 4th and Labor Day; new and increased co-exist rights on Monday Night Baseball and Wednesday Night Baseball; and the rights to produce a new, daily baseball studio show.

The new deal will also include several enhancements to existing rights: increased rights for Sunday Night Baseball exclusive team appearances; more selection flexibility throughout ESPN?s 25-game Sunday Night Baseball slate; increased highlight rights for ESPN websites and applications, additional digital rights for ESPN programs and increased interactive television rights; increased ESPN Radio rights, including the additional right to co-exist during two Saturday windows per team, per year; all MLB-related television content, including games and studio shows, to be available on WatchESPN; continued State Farm Home Run Derby coverage during MLB All-Star, including renewed 3D Derby rights; and renewal and expansion of International rights across territories, including Wild Card games and the rights to additional Baseball Tonight hours.

MUMBAI: Rupert Murdoch-owned News Corporation?s annual net income fell 55.55 per cent to $1.2 billion from $2.7 billion reported in the prior year.

The company?s bottom line was hit due to a $3 billion pre-tax impairment and restructuring charge primarily related to the company?s publishing businesses.

Earlier, this year News Corp had announced that it will separate its profitable television and entertainment business from the publishing, which has been a strain on its bottom line.

Cable networks underpinned by strong growth at regional sports networks including ESPN Star Sports and international cable networks which includes Star India was the only silver lining for the battered media conglomerate at a time when it was through its most difficult phase due to phone hacking scandal.

News Corp?s reported annual revenue of $33.7 billion, 1 per cent increase over the $33.4 billion of revenue reported a year ago. The annual revenue increase was led by 14 per cent growth at the company?s Cable Network Programming segment, partially offset by declines primarily at the company?s Publishing and Other segments.

The Company reported annual total segment operating income of $5.4 billion compared to $4.9 billion reported a year ago. This increase was driven by operating income improvements at nearly all of the Company?s segments, led by a $535 million increase at the Cable Network Programming segment and a $205 million increase at the Filmed Entertainment segment.

These improvements were partially offset by decreases at the Publishing segment, reflecting advertising weakness at the international newspaper and integrated marketing services businesses, and the absence of contributions from The News of the World.

The full year results included a $224 million charge related to the costs of the ongoing investigations initiated upon the closure of The News of the World. The prior year results included a $125 million charge at the Company?s integrated marketing services business related to the settlement of litigation.

Excluding these charges from both years, respectively, this year?s adjusted total segment operating income of $5.6 billion increased 13 per cent, from $5 billion in the prior year.

News Corp Chairman and Chief Executive Officer Rupert Murdoch said: ?We are proud of the full year financial growth achieved over the last twelve months, led by our Cable Network Programming and Filmed Entertainment segments. Not only did we execute on our operating plan and deliver on our financial targets, we returned over $5 billion to shareholders through an aggressive buyback program and dividends. In addition, significant progress has been made in opportunistically addressing the Company?s non-consolidated assets, as demonstrated by the purchase of Fox Pan American Sports, the sale of NDS and the announced intention to purchase the remaining ownership stake of ESPN Star Sports and Consolidated Media Holdings.

?Our Company has continued to innovate, grow and consistently adapt to the rapidly changing media industry landscape. We find ourselves in the middle of great change, driven by shifts in technology, consumer behavior, advertiser demands and economic uncertainty and change brings about great opportunity. News Corporation is in a strong operational, strategic and financial position, which should only be enhanced by the proposed separation of the media and entertainment and publishing businesses.?

During the fiscal, News Corp had consolidated its ownership stakes in affiliate companies by purchasing Fox Pan American Sports and announcing the intent to purchase the remaining ownership stake of ESPN Star Sports, and Consolidated Media Holdings. The company along with private equity firm Permira sold pay-TV encryption company NDS to Cisco in a $5bn deal.

Full Year Company Results

Cable Network Programming

Cable Network Programming reported annual segment operating income of $3.3 billion, a 19 per cent increase over the prior year, driven by a 14 per cent increase in revenue. Operating income contributions from the domestic channels increased 21 per cent, underpinned by growth at the Regional Sports Networks (RGNs), Fox News Channel and the FX Network. The Company?s international cable channels grew earnings 16 per cent, reflecting strong growth in Latin America and Asia.

Affiliate revenue growth of 12 per cent at the domestic cable channels primarily reflects higher rates at all domestic networks, led by growth at the RSNs and Fox News Channel. International cable channels? affiliate revenues increased 27 per cent over the prior year. Nearly two-thirds of the international increase primarily reflects organic growth at the Fox International Channels in Latin America and Asia, with the remaining portion of the international affiliate revenue growth attributable to the consolidation of the Fox Pan American Sports network.

Advertising revenue at the domestic cable channels grew 9 per cent in fiscal 2012 over the prior year, reflecting growth at nearly all domestic networks led by growth at the FX Network, Fox News Channel and the National Geographic Channels. The international cable channels? advertising revenue grew 13 per cent over the prior year, primarily due to improving advertising markets and viewership trends in Latin America, Asia and India.

In fiscal 2012, expenses at Cable Network Programming grew 11 per cent over the prior year, due to increased programming costs including rights fees for the launch of the Ultimate Fighting Championship, as well as increased expenses associated with the consolidation of the Fox Pan American Sports network and the launch of new sports networks in Brazil and San Diego.

Filmed Entertainment

Full year segment operating income increased $205 million, or 22 per cent, over the prior year to $1.1 billion. The growth was driven by a strong release slate including the successful worldwide theatrical and home entertainment performances of Rise of the Planet of the Apes, Alvin and the Chipmunks: Chipwrecked and The Descendants, and home entertainment performances of Rio, X-Men: First Class and Mr. Popper?s Penguins. The year also benefitted from increased operating profit at the television production studios led by the growth of digital distribution revenue from the licensing of content to Netflix and Amazon, as well as an increase in license fees for How I Met Your Mother.

Television

Full year segment operating income of $706 million, increased $25 million versus a year ago. The increase was driven by a doubling of retransmission consent revenues, partially offset by lower political advertising revenue at the local television stations and the absence of the prior year?s broadcast of the National Football League Super Bowl XLV. Excluding the impact of the Super Bowl broadcast, national advertising revenues increased over the prior year reflecting the stronger fall schedule led by The X-Factor and New Girl being partially offset by lower American Idol ratings.

Direct Broadcast Satellite Television

Sky Italia generated annual segment operating income of $254 million, a $22 million, or 9 per cent, increase compared to the prior year. The improvement was due to lower programming costs resulting from the absence of Fifa World Cup costs and lower marketing costs related to the prior year?s rebranding campaign. Local currency revenue for the year was consistent with the prior year. Sky Italia?s year-end subscriber base declined to 4.9 million due to the net reduction of approximately 71,000 subscribers during the year, reflecting the continued challenging economic environment in Italy.

MUMBAI: Espn has reached a 12-year extension with the Pasadena Tournament of Roses, the Big Ten Conference and the Pac-12 Conference, to continue the company?s long-standing relationship with the Rose Bowl Game, one of college football?s most popular events.

The agreement, which begins in January 2015, will include rights to the annual Rose Bowl Game across Espn?s platforms through 2026. Each year, the game will be played 1 January and will feature the champions from the Big Ten and Pac-12.

Whatever is determined to be the exact post-season bowl rotation as part of the future format, Espn will have the rights to the Rose Bowl Game each year. The previous eight-year Rose Bowl deal has two more seasons remaining (2013 Rose Bowl Game, 2014 Rose Bowl Game and 2014 BCS National Championship) within the current post-season structure. Espn (or ABC) has televised the Rose Bowl Game since 1989.

Espn will showcase the Rose Bowl Game on television, Espn Radio, Espn Mobile TV and on smartphones, tablets, online and on Xbox LIVE via WatchEspn. Additionally, Espn has secured rights to distribute the Rose Bowl Game on Espn 3D and around the world through Espn International.

?The Rose Bowl Game is one of sport?s most meaningful and celebrated events. Extending our relationship long term with such a prestigious brand will play a significant role in the way fans continue to define ESPN ? as the leading destination for college football all year long," said Espn President John Skipper.

MUMBAI: The Walt Disney Company and News Corporation have decided to call off their Asian sports broadcasting joint venture ESPN Star Sports 16 years after it was formed on the premise of exploiting opportunities together in a market that was in its infancy.

The two companies have entered into a definitive agreement under which a unit of News Corp will buy ESPN?s 50 per cent equity interest in ESS, which operates 25 television networks and three broadband networks covering 24 markets in Asia, gaining full control of the sports broadcasting entity. Disney, a powerful sports powerhouse in the US, will exit from sports in Asia.

The transaction will allow News Corp units to own and operate all of the ESS businesses while providing ESPN more independence and flexibility in future support of The Walt Disney Company?s overall efforts in Asia, the statement said.

 
 ESS will continue to be jointly managed by two companies till the transaction, which is subject to customary regulatory approvals, closes.

The buyout will also see the exit of ESS MD Manu Sawhney, who will be replaced by Peter Hutton, senior vice-president Sports of Fox International Channels.

Hutton, who has spent 20 years in the international sports television business, will report to the ESS Board.

Sawhney, who joined ESS in 1996, will be staying with the company until 31 August to work with Hutton on a smooth transition.

News Corporation Deputy COO James Murdoch said the buyout of ESPN?s stake was in line with the company?s strategy of consolidating affiliate businesses across the globe.

"News Corporation?s acquisition of the interest of ESS that we did not already own continues the program of simplifying our operating model, consolidating our affiliate ownership structures, and furthers our commitment to delivering incredible sports programming to consumers across the globe, and particularly enhancing our position in sports programming in emerging markets," Jr Murdoch stated.

ESPN President of and Disney Media Networks Co-Chairman John Skipper said the company will continue to be invested in Asia through its digital business which includes ESPNCricinfo, ESPNFC and ESPN Mobile.

"After 16 years jointly managing ESS, we have decided to independently pursue future opportunities in Asia. We are extremely proud of our role in building ESS into what it is today, and now with the growing digital landscape in Asia, we look forward to continuing to serve Asian sports fans through ESPN-branded digital businesses like ESPNCricinfo, the leading digital cricket brand in the world, ESPNFC and ESPN Mobile," Skipper said.

"Peter is a very talented sports media executive, and we believe his extensive experience in sports rights and production will serve ESS well as the business enters into a new phase of development," News Corporation Europe & Asia COO Jan Koeppen and ESPN International EVP & MD Russell Wolff said on Hutton?s appointment.

The disbandment of JV has been on the cards as the two media conglomerates have been competing against each other outside Asia. In UK, ESPN is in direct competition with News Corp-owned pay TV broadcaster BSkyB while News Corp is planning to launch a national sports network in US to take on dominant player ESPN.

Will ad rates go up for sports?

By consolidating the sports broadcasting business, Star will strive to up ad and subscription revenues to keep in line with the high acquisition prices for cricketing properties. The network strength will come into play as it inks deals with media buying agencies, cable networks and DTH service providers.

Says Vivaki Exchange VP Sejal Shah, "The ad rates for sports will surely rise."

Lodestar UN CEO Shashi Sinha feels that the move augurs well for the sports broadcasting genre.

Says Sinha, "It will help their P&L and puts Star in a comfortable position. It makes sense to bring everything under one roof. Distribution revenues will improve. At the same time, in terms of ad sales buying is done on a series to series basis regardless of how many properties a channel has. The key for me is whether Star has a common ad sales force or a separate sales force that looks at the sports business."

Mindshare?s Ravi Rao says that Star could try a clever marketing ploy by using the strength of its network. "At the same time, there will always be a demand and supply equation. The ad industry is growing at a regular rate and clients? budgets are limited. They will continue to evaluate if a property makes sense. They will see if there is a brand fit. The price of a spot will depend on the event."

Nimbus chairman Harish Thawani, however, feels that the Star-ESPN deal will not change the market dynamics as it is not a consolidation in true sense.

"It is not a consolidation as one stakeholder in a JV has bought out another. Consolidation happens when two rivals merge. Then only the benefits follow. Of course, negative consolidation can happen when a channel shuts shop like Imagine."

Platinum Media CEO Basab Datta Chowdhury feels Star will become a much more powerful network from a distribution standpoint. However, it?s not going to be easy to command a premium through consolidation as entry barrier in sports for advertisers is high.

"The price of advertisement, however, will go up if there is increase in viewership," he avers.

No matter what the media buyers may say, Star will weigh options to make gains in ad revenues from sports broadcasting.

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