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ACC Network launches without 3 big distributors, but analysts remain positive

ESPN (US) launched the ACC Network (US) on Aug. 22 with several major distributors on the sidelines, but analysts and the sports programmer itself remain optimistic about the channel's initial partnerships and prospects.

Comcast Corp., Cox Communications Inc. and DISH Network Corp. were among the key carriage holdouts for the college sports channel.

The channel opened with news and information show "All ACC" available to viewers nationwide, including those at the aforementioned companies, through a 10-minute preview on ESPN, ESPN2 (US), ESPNU (US) and ESPNews (US). The network will air 450 live sporting events from the 15-school Atlantic Coast Conference, as well as assorted studio and shoulder programming, including morning show "Packer and Durham," during its freshman season.

SNL ImageACC Network morning show "Packer and Durham"
Source: ESPN

The network has distribution pacts with Altice USA Inc., Verizon Communications Inc., Hulu LLC's live TV platform, Sony Corp.'s PlayStation Vue, Google LLC's YouTube TV and Google Fiber and AT&T Inc.'s DIRECTV satellite service. But it does not have agreements with AT&T's U-verse, AT&T NOW or AT&T TV platforms. ESPN parent The Walt Disney Co. also struck a master deal with National Cable Television Cooperative Inc., allowing the organization's 750 members to opt into the carriage deal. NCTC operates as a programming and hardware purchasing organization for its member companies who own and operate cable systems throughout the U.S. and its territories.

Lee Berke, the owner of consultancy LHB Sports, Entertainment & Media, noted in an interview that the ACC Network is not the first sports service to launch without key distributors. For instance, BTN (US) launched without Comcast as a distributor, while the Pac-12 Network (US) still lacks DIRECTV carriage.

Berke noted that Disney generally favors portfolio negotiations but sometimes makes exceptions. Disney's current carriage contract with Comcast is set to expire in 2021. A Comcast spokeswoman would only say the company does not have a carriage agreement for the ACC Network.

Earlier this month, Disney reached a comprehensive deal with Charter Communications Inc. that covered retransmission consent for ABC (US)-owned broadcast stations. Pay TV operators pay retrans fees to broadcasters in exchange for permission to carry local stations' signals. The pact also encompassed carriage of Disney's cable portfolio, including the ACC Network, which Curt Pires, the principal of consultancy Cap Sports Group, said was "huge" for Disney.

Charter's cable systems have a significant presence within the conference footprint, particularly in North Carolina and South Carolina. Those two states are home to five ACC schools, notably national football champion Clemson and basketball powerhouses Duke and the University of North Carolina at Chapel Hill.

For its part, ESPN said it is "pleased" with the progress it has charted on the distribution front, securing "agreements with cable, satellite, telco and streaming providers — both national and in-market across the ACC footprint." The sports programmer said more deals are being negotiated and could be announced "in the coming weeks."

Pires noted that the virtual providers give access to ACC fans or alumni within or beyond the conference's footprint, even if their traditional provider does not have a deal. "It's a different time than when ESPN launched the SEC Network (US) in 2014," he said, which predated streaming services broadly becoming distribution alternatives for consumers.

Pires added that Disney can wield another leverage point next week, as the ACC Network kicks off the first of its 40 football telecasts, with Clemson meeting Georgia Tech on Aug. 29.

A spokesman for Cox said the cable operator would not comment about its negotiations with Disney. DISH also declined to comment on the status of its negotiations with Disney.