Originally a spin-off channel from Cable News Network (CNN) incorporating the resources of Sports Illustrated magazine, CNN/SI has initially struggled to make an impact in the crowded sports news sector. The move towards live content appears to have given the network a boost however, with the subscriber count now close to 20 million and availability rising to nearly 50 cable systems throughout the US.
The acquisition of live coverage of sporting properties such as the Wimbledon tennis tournament (pictured) and NASCAR motor racing has succeeded in building up awareness of the channel. However, leading executives have been quick to point out that such improvements may prove to be a double-edged sword as the addition of high-profile sports content will eventually lead to higher licensing fees to balance the cost of obtaining live sports rights.
One such executive comments: “We’ve seen this scenario too many times. Once a network begins to add live sports product, the licensing fees skyrocket.”
CNN/SI executive vice president Steve Robinson defended the move towards move live content, stating: “While there is a plethora of news to support a 24-hour sports news network, we decided that only through live sports events could CNN/SI stand above the competition. This will not mean a rise in licence fees as we are not in a position to bid for marquee and costly pro league sports packages that would inevitably drive up operator fees.”
Robinson continues: “We’ve just reached an agreement to distribute the National Lacrosse League games next year and we’re looking at some golf and tennis events, as well as some college sports events.”
Though the lure of live events is clearly boosting the network’s subscriber base – driven mainly though access to sister broadcaster TNT’s array of sports content – CNN/SI has been forced into an overall restructuring of its operations recently. The network laid off 11 of its 100-strong staff following the loss of its prime 11pm timeslot for its ‘Sports Tonight’ show on CNN after the parent broadcaster decided to devote the schedule to more news-orientated programming.
