Local cable television company SportsMax Limited yesterday announced that it will begin offering subscription packages on its satellite network next month in a move to recover redistribution costs.

SportsMax chairman Pat Rousseau told journalists at a news briefing at the company's headquarters in New Kingston that the firm is now spending between US$300,000 and US$400,000 per year on rights fees to redistribute Fox Soccer Channel (FSC).

Rousseau said that this, when combined with extensive production costs, meant that the business was not feasible merely generating revenues from advertisements.
"If you can't find that back in advertising, you lose your money," said Rousseau.

The channels that are currently offered on SportsMax Limited's satellite network are its self-titled sports channel, SportsMax, as well as the recently formed Fox Soccer Channel Jamaica (FSC Jamaica).

Last month, International Media Content Limited (IMC), the parent company of SportsMax, signed an agreement with FSC, a subsidiary of United States broadcasting giant, Fox Network, which gave SportsMax broadcasting and distribution rights in Jamaica for the rebranded Fox Soccer Channel Jamaica.

The deal allows SportsMax to place local and regional content and commercial inventory on FSC Jamaica, as well as market and distribute FSC Jamaica to cable operators via the SportsMax satellite network.

Rousseau said that beginning November 1, SportsMax and FSC Jamaica will be distributed via local cable operators for $400 per month in Kingston and surrounding areas and for $300 per month outside of Kingston.

A total of 60 cable operators, the company said, have already signed on to provide these packages to their customers.
The company said that this business model follows in the footsteps of well-known international networks such as Skysports, which, they claim, generate up to 72 per cent of its revenues from subscriptions.

"This is a model that is used all over the world," said SportsMax president and CEO Oliver McIntosh. "This will enable us to continue to bring content to local television that has not been brought before."

The company executives also said that the distribution deal with FSC was strategically implemented after prudent market research (see table 1), to gain market leadership in the area of sports, primarily in international football broadcasting rights.

This, they believe, will entice cable customers to subscribe. Before the merger, SportsMax broadcast some games from the English Premier League (EPL) and English FA Cup. By combining with FSC, SportsMax Limited will now have local rights for some of the more popular global tournaments such as the UEFA Cup and Italian Serie A, as well as a greater procurement of EPL and FA Cup games.

According to the executives, under the partnership, local programming on FSC Jamaica will be available to FSC for broadcast in the USA and Canada, thus allowing SportsMax to increase its market access from 600,000 to over 25 million people.

The move is also aimed at opening up the doors for greater advertisement revenues for SportsMax, which has been struggling for advertisements in a feeble local cable market.
A recent survey commissioned by TVJ showed that the combined foreign cable channels have 37 per cent of the local market, TVJ has 34 per cent, CVM-TV has 26 per cent, Love-TV has one per cent and local cable channels combined have two per cent. Of this local cable channel market, Hype-TV has the major market share, accounting for 33 per cent, RE-TV has 31 per cent and SportsMax has a mere 13 per cent.

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