ESPN Goes Public In Defense Of Higher Programming Costs

In an unusual, if not unprecedented, move, ESPN has decided to go public in answering criticism from the cable TV industry about recent increases in fees the cable sports network is charging cablecos for the privilege of carrying ESPN's programming.

In a news conference Thursday at the National Press Club in Washington, D.C., ESPN President George Bodenheimer launched a verbal onslaught against cable giant Cox Communications, saying recent threats by the cableco to move ESPN's programming to a premium-priced tier amount to nothing more than an attempt by Cox to negotiate with ESPN in public.

"I want to respond directly to the inconsistencies, omissions and rhetoric from Cox Communications as it attempts to blame ESPN for its retail pricing decisions," Bodenheimer said. "Good journalism tells the whole story, and you need to have the complete picture."

Bodenheimer said there were four key points that have been generally overlooked by the press in its reporting of the ongoing price debate between Cox and ESPN. First, ESPN is expanded basic cable's most valuable service - it is a widely popular ratings winner that satisfies subscribers, generates local revenue and helps grow operators' new businesses better than any other brand, he said. Second, ripping ESPN out of expanded basic service would not benefit Cox customers. Also, Cox's argument about sports programming reflects concern only about Cox's margins and not its customers, Bodenheimer said, further asserting that Cox customers pay substantially more each month for Cox's overhead and capital expenditures than they do for the programming they watch.